What in your view are the major trading and investment cues to watch out for in the week starting on 05 July?

Here are some of the major cues to keep an eye on for the coming week.

· Nifty closed lower, but with India VIX at 12.09, the Nifty downside risk is limited and it is still buy on dips. Of course, many small-cap stocks rallied 30-40% during the week hinting at broad-basing of markets but also some froth building in smaller stocks.

· PMI Services and PMI Compositive will be watched on Monday after PMI Manufacturing dipped below 50, hinting at contraction and loss of momentum. Good news is on the sharp pick-up in June auto demand over May and that will keep auto stocks in focus.

· Coronavirus cases fall 5 lakh live cases but there is concern over COVID 3.0 delta variant. Despite vaccinations crossing 34.5 crore, vaccine time-table and the delta variant remain potent risks for the market.

· IPOs will be big news in July. Firstly, on 05 July, there is the India Pesticides listing and the GMP is already quite encouraging. The IPOs of Clean Sciences and GR Infraprojects open during the week, setting the tone for Rs.32,000 crore of IPOs in July.

· Forex Reserves weekly data on Friday 09 July will be critical as it is already at a record $609 billion. However, the focus will also be on the rupee which Rs0.56 to 74.74/$. The RBI has also not been intervening in the forex market to support the rupee.

· Earnings season for Jun-21 Q1 kicks off with big names like TCS and D-Mart during the week apart from smaller names like Shyam Metalics, Delta and Madhucon. Meanwhile, FPIs were net sellers of Rs.5,416 crore in July first week, showing pressure.

· In global cues, the OPEC outcome will be watched. Data points to watch include, US PMI, Jobless Claims, China PMI, inflation, Japan Spending & bank lending, EU PMI and ECB policy. Oil could hold the key.