Market Week Ahead: 10 factors that will keep traders busy next week

Bulls continued to dominate Dalal Street for the third consecutive week as the Nifty and Sensex hit fresh intraday record highs of 11,495.20 and 38,076.23, respectively, in the week-ended August 10.

Inflow from foreign institutional investors, continued buying in banking and financials and in-line better-than-expected Q1 earnings boosted investor sentiment, though there is a caution in global peers due to trade tensions.

The Sensex gained 0.83 percent to close the week at 37,869.23. The Nifty rose 0.60 percent to end Friday at 11,429.50. Both benchmark indices have rallied 3.8 percent in the last three weeks.

The broader market underperformed frontliners with the BSE Midcap and Smallcap indices gaining 0.02 percent and 0.29 percent, respectively, in the passing week but outperformed in three consecutive weeks, rising 6.7 percent each.

Sensex likely to be in 40,000-42,000 range by next Independence Day 2019: Poll
After such an upmove and given that we are at the fag end of the June quarter earnings season, which seems to have been priced in, and continued uncertainty over US-China trade war, experts expect the market to consolidate for the next few sessions before resuming its northward journey. However, they were quick to add that the long term trend remains intact.

Experts don't see any major risk on the domestic front, adding that any sharp correction if it occurs will only be because of global reasons.

"With the index trading at a record high, some consolidation cannot be ruled out. We expect stock-specific volatility to continue with more corporate earnings scheduled in the next few sessions," Jayant Manglik, President, Religare Broking told Moneycontrol.

Experts said market participants would keep an eye on global developments especially the US-China trade war, progress of the monsoon, macroeconomic data, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), movement of the rupee against the dollar and crude oil price trajectory.

"We continue to remain positive on market. We feel a sufficient monsoon, hike in the minimum support price and government infrastructure spending will be positive for the consumption theme," Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas said.

Indian stock market will remain shut on Wednesday, August 15, on account of Independence Day.

Here are 10 key factors that will keep traders busy next week:

Earnings
As we enter the final week of June quarter earnings season, nearly 1,800 companies will declare their quarterly earnings. Most of these will be out in the first two sessions of the week itself.

Tata Steel, Tata Chemicals, Cadila Healthcare, CARE Ratings, Godrej Industries, DHFL, Oil India, Ashoka Buildcon and Hotel Leela Venture will announce their numbers on Monday, while Sun Pharmaceutical Industries, IDBI Bank, Allahabad Bank, Grasim Industries, Indiabulls Real Estate, HDIL and Dilip Buildcon will declare results on Tuesday.
Source: https://www.moneycontrol.com

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