Key Market Events to Watch this Week - Stock Market Outlook

The Indian equity markets started the week on a positive note on account of positive global sentiments. In addition, the news that GST collection recovered to a three-month high in July, above Rs1 lakh crore mark, as economic activity restarted also supported the market performance.  BSE Sensex closed 363.79 points or 0.69% up and Nifty50 jumped 122.10 points or 0.77%.

Here, we have discussed, some of the key events that will take place this week.

RBI Policy:
RBI monetary policy review meeting is scheduled this week and the outcome of the same will be announced on August 6. The market experts expect status quo on key rates, but the focus will be on inflation and growth guidance ahead.

Quarterly Results:
A lot of companies are going to announce their quarterly performance this week. Some of the top names are HDFC, Bharti Airtel, SBI, Titan Company, Dabur, M&M, Cipla, GAIL India, Adani Ports, ZEE, Divis Labs and Hindalco Industries.

IPO Week:
Windlas Biotech, KRSNAA Diagnostic, Exxaro Tiles and Devyani International IPO will be open for subscription this week. The said four IPOs will be launched on August 04 and will be open for subscription till August 06, 2021.

FII DII Data:
FII turned cautious due to the increasing fear of the third wave in India. FII’s sold equities worth over Rs6,900cr during last week.

On the other hand, domestic institutional investors bought Rs8,206cr worth of shares last week.

Auto Sales numbers and Economic Data:
The auto companies will be releasing their July auto sales figure. Maruti Suzuki, TVS Motor, Eicher Motors, Bajaj Auto, Ashok Leyland, M&M, Escorts Tata Motors will be in focus.

Covid19 Numbers:
The active Covid-19 cases in India jumped to 4,10,952 registering an increase for the fifth consecutive day. As per the Union Health Ministry data, India on Sunday reported 41,831 new Covid-19 cases in the last 24 hours.

Technical Outlook

NIFTY 50

Nifty closed with a loss of 0.10% near 15763 levels. The market breath was bullish with 27 advance against 23 declines. Sectors ended the session in green territory are Auto, FMCG, IT, Media, Pharma and Realty, sectors closed in red zone are Banks (Pvt and PSU), Financial Services and Metal on Friday. 

NIFTY BANK
Niftybank closed with a loss of 0.30% near 34584.35 levels. FEDERALBANK, AUBANK, RBLBANK were top gainer while SBIN, AXISBANK, INDUSINDBK were top losers.  

WEEKLY TOP3 GAINERS
 

WEEKLY TOP 3 LOSERS

Weekly Chart- Nifty50

We have applied parabolic SAR which used to determine the price direction as well as draw attention to when the price direction is changing. A series of dots placed below the price which is deemed to be a bullish signal. Prices also took support from its slopping line and closed above it buying seen if able to give breakouts of its resistance level.

Nifty find support near 15000 while 16000 will act as a psychological resistance.
 

WEEKLY CHART- BankNifty

Bank Nifty was weak against Nifty last week. As per Moving averages, 20 days EMA is also placed in the region of 33900 level which is coinciding with the pivot levels. Thus closing below this EMA is much needed  for selling pressure and unless this happens, it can continue to act as hurdle for now.

Banknifty support is placed near 33900 while on higher side 36000 will act as an immediate resistance.
 

CALL FOR THE WEEK:

CALL : BUY QUESS ABOVE 888 SL 840 TGT 935
Trend of stock is bullish, Prices formed Bullish marubozu like candle. Here the open is equal to the low. It indicates that there is buying in the stock traders actually bought at every price point during the day. It does not matter what the prior trend has been, the action on the marubozu day suggests that the sentiment has changed and the stock is now bullish. The expectation is that this sudden change in sentiment will be carried forward over the next few trading sessions and hence one should look at buying opportunities. Price trading above 12-day moving average and now it has been acting as a decent support as of now. RSI placed above 60 levels which also indicates buying in stock for coming session.