InvestorQ : What do you see are the major stock market triggers and cues for the week commencing on 20 July, Monday?
Neelam Naik made post

What do you see are the major stock market triggers and cues for the week commencing on 20 July, Monday?

Dawn Cherian answered.
3 years ago

I would agree with Diksha that the COVAXINE update will be the big event this week as the trials have already begun. This is more due to the absence of any other real cues for the market.

I also find that Mr. Saurabh Prabhu is trying to spam this space by promoting his blogs here. This is not the forum for promoting such blogs. Please remove such posts as they disturb the flow.


diksha shah answered.
3 years ago

Here are some key cues and triggers we see in the markets in the coming week.

· Infosys numbers were better than street expectations and the positive margin and growth cues could put IT stocks as the likely leader of trend this week.

· Coronavirus cases are spiralling and now averaging over 30,000 cases per day. An extension of the July 31 deadline for lockdown will be negative for markets.

· Also watch out for the announcements on the EMI moratorium, which in all likelihood could be pushed till 31 December this year. This is a credit negative for banks.

· The tepid response of just about 0.93X for Yes Bank FPO will be an overhang on the banking stocks, especially the more vulnerable ones.

· After the sharp rally, pharma is taking a breather, but a lot will predicate on any success shown in the human trials for COVAXINE.

· Technically, 11,200 on Nifty could be a critical resistance and most of the Nifty call writing has been also concentrated on 11,200 strike

· FII and DFI selling could be an overhang but the INR may actually get more support from the PE flows of Jio Platforms coming into India.

· Big earnings numbers this include ICICI Bank, Axis, Bajaj Finance, HUVR, ITC, Bajaj Auto, L&T, Asian Paints and key insurers like HDFC Life and SBI Life.

· The 20% growth reported by HDFC Bank is a positive but markets will start asking questions about loans under moratorium and impact on future NPAs.

· Big boy, Reliance, could face resistance around Rs.2000. While there were positive cues from the AGM, the Aramco deal delay could be an overhang.

· Rossari Biotech likely to be listed on July 23 and being the first IPO since March and getting 79X oversubscription it could set the IPO trend.

· Foreign exchange reserves shot up to $513 billion last week but the current week figure could include some of the Jio flows.

· Focus will be on global cues like the US jobless claims, mortgages, new home sales and Markit PMI numbers. The BOJ meeting will be awaited for monetary cues.


Saurabh Prabhu answered.
3 years ago

I have presented my views on the rights issue. I believe the existing investors should either increase their stake/certainly invest in the right issues or exit the stock completely. It does not make sense to hold onto the stock without subscribing to rights issue. It is a good step by company to ensure minimum dilution and also raising funds to fend against the losses due to COVID-the 19.