InvestorQ : What in your view are the stock market cues for the coming week starting on 11th July 2022?
Katherine Gonsalves made post

What in your view are the stock market cues for the coming week starting on 11th July 2022?

diksha shah answered.
4 weeks ago

Here are some of the major cues from the stock market for the coming week starting on 11 July 2022.

· Nifty gained 2.97% during the previous week showing strength in the last 3 days of the week. Among sectors, the Financials and autos led the markets higher while the IT and FMCG sectors also lent support. Apart from the large cap performance, the mid-cap index gained 4% and small cap was up 3% for the week. Rally is getting broad based.

· Among results update, TCS is likely to react this week on its attrition touching a high of 19.7%. Large cap results in the coming week include; HCL Tech, HDFC Bank, ACC, Mindtree, L&T Infotech, ICICI Prudential Life and Tata Elxsi. Key mid-cap numbers include LTTS, Spandana Sphoorthy, Delta, Angel One, Butterfly, Bharat Electronics, Den.

· Watch out for India CPI inflation on Tuesday and WPI wholesale inflation on Thursday next week. CPI inflation had tapered in May to 7.04%, but WPI edged closer to 16%. IIP, to be out on Tuesday, is also likely to gain from the base effect after reporting 7.1% last month. All eyes will be on US inflation on Wednesday, after the 8.6% figure last month.

· Among high frequency drivers of the markets, Brent Crude prices are expected to break out of the range of $100-$110 per barrel range. However, supply from Norway and Libya is still tight. FPI selling tapered this week after the sell-off in June of $6.2 billion but the rupee weakened further to 79.3/$ on dollar demand. Could scale 80/$ this week.

· Other data points to watch for this week include forex reserves and trade data to be released on Friday 15th July. With record trade deficit expected, markets would be keen on CAD impact and on reserves. Meanwhile, F&O OI accumulation data hints at Nifty range of 16,100 to 16,900 on the Nifty, and falling VIX in these conditions is a positive.

· Key data points from US markets this week include Inflation, API oil stocks, PPI, jobless claims, EIA natural gas stocks, Retail sales, IIP, Business inventories. Key data points from rest of the world this week include. Focus on EU IIP; Japan Machinery orders, IIP, PPI; China Q2 GDP, IIP, Retail Sales, Unemployment Rate.