InvestorQ : What in your view are the major triggers for the stock markets in the coming week starting on 12 July?
Arusha Ray made post

What in your view are the major triggers for the stock markets in the coming week starting on 12 July?

diksha shah answered.
1 year ago

It is going to be an action packed week and here are the major cues for the week.

· The action could be back on mid-caps with mid and small caps outperforming the Nifty by over 150 bps. Focus on smaller stocks this week. Tardy progress of monsoon may be a big risk for markets as it could hit Kharif output.

· Big earnings expected this week include Infosys, Wipro, LTI, HDFC AMC, LTTS, HFCL, Tata Metalics, Cyient, Tata Elxsi and Dodla Dairy. For earnings traction, the focus will be on the export numbers this week, which is expected to drive corporate top line growth.

· IIP growth and CPI inflation to be announced on 12 July. In IIP, the focus will shift from yoy growth to MOM growth. CPI inflation will be watching headline inflation and core inflation, which shot up last month.

· Big IPO story for the week will be Zomato IPO opening on 14 July. Should attract retail interest at price range of Rs.72-76. Institutional demand huge. Could lead to a surge in FII flows after consistent selling of Rs.4,527 crore in July so far.

· Coronavirus recovery rate improves further to 97.2%, so COVID 2.0 should be less of a concern. However, despite vaccinations crossing 37 crore, delta variant remains a risk.

· Focus shifts to Brent at $75 plus per barrel. Remains a macro concern due to petrol and diesel prices crossing Rs.100 per litre in most states.

· Nifty options accumulation data hints at narrow range of 15,600 to 15,900 implying that the level of 16,000 on the Nifty is likely to remain a major resistance for the markets during the week.

· Major global data flows to watch out for include US inflation, US Jobless Claims, US retail sales, China Q2GDP, China Industrial Production, Japan machine orders, Bank of Japan Interest decision, EU Q2 GDP and EU Industrial production.