The SGX Nifty dropped 230 points. Indian markets could open lower, in line with negative Asian markets today and negative US markets on Friday. Indian markets ended almost flat on July 16 even as interest returned to large caps and volumes expanded, said Deepak Jasani, Head of Retail Research, HDFC Securities.
Gaurav Udani, CEO & Founder, ThincRedBlu securities, said, "Last week Nifty closed at 15,923 above its key resistance level of 15,900. Today, Nifty is expected to open with a gap down of over 200 points at 15,700. As long as Nifty holds above 15,600 traders can look at buying on breakouts. Below 15,600 there is a high possibility nifty will test 15,400 and 15,200 in the coming days. Markets are near its all-time high levels and it is advisable to be cautious than greedy".
According to Mohit Nigam, Head-PMS, Hem Securities, some stock specific actions can be witnessed in stocks such as Tata Power & HPCL (both partnered to provide end-to-end EV charging stations), Rossari Biotech (to buy Tristar Intermediates for Rs 120 crore), Sundaram Finance (plans up to Rs 500 crore two-part bond sale).
Immediate support and resistance for Nifty 50 are 15,600 and 15,900 respectively.
Earnings today
Earnings to watch today include HCL Tech, Alok Industries, Mastek, Swaraj Engines, HDFC Life Insurance etc. GR Infraprojects and Clean Science & Technology will debut on stock markets today. I
Nifty ends with 1.49% weekly gain
Nifty has found it difficult to breach 16,000. Sectoral rotation could continue while select stocks could attract buying based on news and developments. On a weekly basis, Nifty has ended with a 1.49 percent gain after two weeks of losses. The current week will witness more Q1 results and the stocks could react to these announcements. The indices could continue to edge upwards in the coming week after a weak opening on Monday which is a truncated week with a holiday on Wednesday, Jasani added.
US stocks fell Friday to finish the week lower, snapping a three week win streak for the major indexes, as data showing a fall in consumer sentiment overshadowed an earlier report on a sharp rise in retail sales, while corporate earnings reports remained mixed. Wall Street ended lower on Friday, weighed down by declines in Amazon, Apple and other heavyweight technology stocks, while investors worried about a rise in coronavirus cases tied to the highly contagious Delta variant.
For the week, all three major US stock benchmarks fell, snapping their three week win streaks. The Dow saw a 0.5 percent weekly decline, while the S&P 500 had a 1 percent weekly loss and the Nasdaq fell 1.9 percent for the week. The small-capitalization Russell 2000 index dropped 5.1 percent for the week in its third straight weekly loss.
A good start to second-quarter earnings reports and strong June retail sales were overshadowed on Friday by evidence of flagging consumer sentiment. A preliminary reading of the University of Michigan’s index of consumer sentiment fell to 80.8 in July from a final reading of 85.5 in June, notching the measure’s lowest level since February. Economists expected a reading of 86.3, according to a survey by the Wall Street Journal. The survey shows that consumers are preparing for a 4.8 percent increase in the cost of living this year, the highest level since 2008.
Meanwhile, sales at US retailers increased 0.6 percent last month, compared with a forecast for a 0.4 percent decline. Excluding autos, retail sales advanced 1.3 percent, almost three times as much as Wall Street Journal expected.
OPEC and its allies reached a deal on Sunday to phase out 5.8 million barrels per day of oil production cuts by September 2022. Coordinated increases in oil supply from the group — collectively known as OPEC+ — will start in August.
Asian stocks fall
Asian stocks fell early Monday on concerns about the impact of elevated inflation and COVID-19 outbreaks on economic prospects. Nikkei was trading 1.5 percent down and Hang Seng trading ( -) 2 percent down.
TOPIX, and KOSPI were down more than 1 percent each.
Q1 earnings to guide equity markets
The first quarter earnings season will dictate the trend in the equity markets in this holiday-shortened week amid absence of major macroeconomic drivers, say analysts.
Besides, lacklustre global markets may increase volatility in the market, they added.
Equity markets would remain closed on Wednesday for Bakri-Id. "This week is a holiday-shortened one and global cues and earnings announcements will continue to dictate the trend. Besides, COVID-related updates and progress of monsoon will remain in focus. On the earnings front, we have a long list of major corporates who will be announcing their numbers during the week," said Ajit Mishra, VP Research, Religare Broking. Some of the prominent names are Reliance, ACC, Asian Paints, Bajaj Finance, Bajaj Auto, HCL Technologies, HDFC Life Insurance, ICICI Prudential Life Insurance, Hindustan Unilever, Ultratech Cement, Ambuja Cement and JSW Steel.
