Q1 Results, Rupee, Monsoon Session, Other Factors to Watch Out For

Indices ended the week within the inexperienced owing to a restoration within the international markets as even after the US CPI got here in at a 41-year excessive, a number of the policymakers preach for a 75 foundation level fee hike within the subsequent July Fed meet.

During the week passed by, BSE Sensex misplaced 721.06 factors (1.32 per cent) to shut at 53,760.78, whereas the Nifty50 declined 171.4 factors (1.05 per cent) to finish at 16,049.2. On the sectoral entrance, BSE Power index added 4.5 per cent and BSE Oil & Gas, Auto, and Realty indices rose two % every. However, the Information Technology index shed six per cent.

Among broader indices – BSE Small-cap index rose 0.5 per cent, Mid-cap added 1 per cent, whereas Large-cap index shed 0.5 per cent.

“Volatility has re-emerged and investors have turned their focus on upcoming Fed policy in the backdrop of heightened US inflation. Fall in crude prices and reduction in FII selling added optimization to the domestic market while gloomy IT results, depreciating rupee and fear of global recession are restricting sizeable up move,” stated Vinod Nair, Head of Research at Geojit Financial Services.

Factors to Watch Out For


Indian rupee continued to depreciate towards the US greenback and closed close to the 80 mark because the international investor proceed the promoting within the Indian markets. During the final week, the rupee touched a contemporary low of 79.96 per greenback and declined 62 paise to finish at 79.87 per greenback on July 15 towards its July 8 closing of 79.25.

“As dollar index traded in a range broadly the trend for dollar is positive till the time it is above 105, next hurdle for dollar can be seen around 110 hence rupee can be seen weak trend continued towards 80.50,” stated Jateen Trivedi, VP Research Analyst at LKP Securities.

“79.25 will act as resistance for rupee and break above 79.25 will trigger short covering for rupee. Rupee range can be seen between 79.50-80.50 for the coming week,” he added.

FII Selling

Foreign institutional traders (FIIs) continued their promoting spree within the final week additionally however with lowered fee, nonetheless home institutional traders (DIIs) offered some assist as they continue to be internet patrons.

ECB Meeting

The European Central Bank (ECB) coverage assembly is scheduled subsequent week, which is predicted to deal with inflation and different Eurozone disaster.

Suggesting inventory market observers and traders to stay vigilant towards the ECB assembly, Divam Sharma, Founder at Green Portfolio stated, “Eurozone inflation numbers are anticipated within the coming week, with the Euro reaching a parity of 1:1 with the US Dollar for the primary time in twenty years, and the Nord Stream 1 pipeline being closed for upkeep, the vitality prices for the continent may proceed to soar, particularly submit the shutdown of key crops within the US which have been giant exporters to Europe. Focus on renewable vitality will improve multifold.”

Q1 Results

Q1FY23 incomes season started with the announcement of IT sectors, worsening international macros by way of rising inflation, financial slowdown, foreign money headwinds, and more likely to reduce spending income development taper right down to low double-digit development in FY24E.

Nearly 200 firms will announce their quarterly earnings subsequent week together with Ambuja Cements, Reliance Industries, HDFC Life Insurance Company, Hindustan Unilever, Havells India, IndusInd Bank, Wipro, CSB Bank, IDBI Bank, JSW Energy, RBL Bank, Bandhan Bank, JSW Steel , Ultratech Cement, ICICI Bank, Kotak Mahindra Bank.

Bank Of Maharashtra, AU Small Finance Bank, TV18 Broadcast, Network18 Media & Investments, Rallis India, Century Plyboards, Gland Pharma, Mastek, Tata Communications, CSB Bank, Hindustan Zinc, IDBI Bank, Mphasis, Persistent Systems, PVR, SRF, Crompton Greaves Consumer Electricals, Karnataka Bank, Uttam Galva Steels can even declare their June quarter earnings.

Nifty Technical Outlook

As per specialists, technically minor assist on the draw back for the nifty 50 index lies at 15,850 ranges, whereas minor resistance on the upside is capped round 16,150-16,200 ranges. If the nifty 50 index breaches minor assist on the draw back and closes beneath it, there could also be seen contemporary break down and the index can drag in the direction of main assist on the decrease facet round 15,600, and if breaches minor resistance on the upside and closes above it , there could also be seen contemporary breakout and index can head in the direction of increased ranges round 16,350. Currently, nifty 50 index is buying and selling beneath 200 days exponential transferring common and suggests long-term development is bearish. EquityPandit’s analyst predicts vary for the week is seen from 15,650 on draw back and 16300 on upside.

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