What are the major triggers you see for the week starting on 17th January 2022?

Here are the major cues for the coming week.

a) Nifty gains of 2.5% in the last week was driven by $31 billion Fed bond book expansion, which is positive for equities. This also boosted small cap and mid-cap stocks and if the Fed again builds its book above peak levels, Nifty should rally.

b) Expect market reaction to HDFC Bank with 20% growth in net profits for Dec-21 quarter. This should be favourable to Bank Nifty also. HCL Tech disappointed with fall in profits and that is likely to impact the stock performance next week.

c) After a gap of almost one month, the IPO of AGS Transact Technologies to open on 19-Jan. It will set the tone for 2022 and especially the first quarter. However, size reductions by AGS Transact and Adani Wilmar raising doubts on IPO appetite.

d) Key large cap Q3 results include Ultratech, Bajaj Finance, Bajaj Auto, Asian Paints, HUL, ICICI Bank and Reliance. Key mid-cap Q3 results for the week include Tatva, IPRU Life, I-Sec, LTTS, Tata Elxsi, TCOM, Biocon, Havells, Bandhan, Gland, SBI Life.

e) FPIs sell equities worth Rs.4,000 crore and their action will be in focus ahead of upcoming Union Budget announcement. However, Call and put writing moves up to 19,000 and 18,200 strike levels and is supported by VIX lower at 16.56 levels.

f) US data focus on MBA Mortgage applications, housing starts, building permits, jobless claims, existing home sales. ROW focus on EU inflation, monetary policy; Japan BOJ rates, machinery orders, trade; China Q4 GDP, retail sales.