InvestorQ : What in your view are the major stock market cuts for the trading week starting on 08th August?
Juvina Maggie made post

What in your view are the major stock market cuts for the trading week starting on 08th August?

diksha shah answered.
2 months ago

Here are some of the major triggers for the coming week

· It was another strong week for the indices. Nifty closed with 1.39% gains during the previous week, Mid cap index with 2.1% and the small cap index with 1.6%. Among the large cap stocks, IT, metals and auto led the rally during the week. Mid-cap and small cap indices have rallied sharply in the last 40 days, so expect some selling pressure.

· It will be a week of big results and big reactions. Firstly, the markets rae likely to react to SBI results in the coming week. SBI results surprised on the downside but worse case provisions are done; so overall impact should be positive. Monetary policy was more hawkish than expected, so expect some caution this week.

· The results season enters the penultimate week with key large cap results for the week including Bharti Airtel, Adani Ports, Power Grid, Coal India, Eicher Motors, Hindalco, Divi’s, Grasim, ONGC. Key mid-cap results for Q1FY23 include Nalco, Delhivery, Torrent Power, Whirlpool, ABB, Bector’s, IGL, PEPL, Sobha, Tata Chemicals, MRF.

· In domestic macro data, the CPI inflation for July 2022 will be released by the MOSPI on Friday, 12th August. The Bloomberg consensus estimate is of flat sequential inflation at around 7.03% for July 2022. IIP growth in May 2022 was 19.6% and the June 2022 IIP is expected to be also announced on Friday. IIP is likely to stay elevated on base effect.

· In key macro data, the July 2022 trade balance details will also be announcd on Friday. Preliminary data already suggests trade deficit at record $31 billion for July 2022. As India feels the impact of imported inflation, the US will announce its consumer inflation on 09th August. It was 9.1% last month and is expected at around 9% for July 2022.

· As the Indian rupee hovers in the range of 79-80/$, support comes from oil prics tapering to $95/bbl in the Brent market on fears that Europe could slip into a recession due to supply chain issues. On the positive side, FPIs infused Rs7,000 crore into equities last week, triggered by a combination of growth hopes and the bottoming of the rupee.

· The call and put accumulation for the week indicates a likely Nifty range of 17,100 to 17,600. The markets were volatile last week and that led to VIX moving higher in the week. Whether the market can bottom out and find fresh buying will largely depend on the VIX tapering further from these levels. That is normally a signal for buy on dips.

· Key data points from US markets include July Inflation, API crude stocks, PPI, initial jobless claims, wholesale inventories, MBA mortgages. Key data points from rest of the world include EU Industrial Production; Japan Machine Tool Orders; China July inflation, July Vehicle sales.