Going into the week, here are the important factors that could steer the market.
Indian markets snapped a 6-day losing streak to close with gains on Friday. Benchmark indices Sensex & Nifty closed with gains of 0.1%. Nifty settled below the 11300 level.
For the week Sensex closed down 1.2%, Nifty fell 1.2% and Nifty Bank slipped 1.6%. Yes Bank 15.5%, Zee Entertainment 14.4%, Asian Paints 11%, Sun Pharma 4.3%, DRL 3.4% were among Nifty gainers. UPL -6.5%, Tata Motors -6.2%, Adani Ports -6%, HDFC -5.8%, Tech Mahindra -4.8%, CIL -4.7%, Bajaj Finserv -4.5%, HDFC Bank -4.2%, SBI -4% were among Nifty losers.
For the week Nifty resistance is seen at 11,400, 11,310; Support at 11,130, 11,220
whereas for Bank Nifty Resistance seen at 29,550, 30000; Support at 28,960, 28,500
A look at some events which will guide the markets.
Vodafone Idea and ICICI Bank stock will react its earning released. ICICI Bank swung back to profit with Q1 net profit of Rs 1,908 Cr vs Loss of Rs 119 Cr YoY, slight recovery seen in asset profit with Gross NPA at 6.49% vs 6.70% QoQ; Net NPA at 1.77% vs 2.06% QoQ. Bank is targeting a Return on Equity of 15% by June 2020. Vodafone Idea reported a Q1 net loss of Net Loss of Rs 4874 cr vs Loss of Rs 4882 cr, company has lost the top spot on subscriber market share to Reliance Jio, market expectations of a narrower loss is not fulfilled.
Earnings season will continue with DRL, GHCL, Axis Bank, EIH Associated, Hero Motocorp, MRPL, PNB Housing, Tech Mahindra, IOC announcing Q1 results this week.
Macro eco data
Fiscal deficit data for April-June will be announced on Wednesday, government has set a fiscal deficit target of 3.3% for FY20. Core sector output for the month of June will be announced on Wednesday, expected at 4.4%. Auto companies will announce sales data for the month of July on Thursday. Nikkei Manufacturing PMI and GST collections for July will be announced on Thursday.
Fed, BoE & BoJ rate decision
3 of the world biggest Central Banks - Fed Reserve of U.S., Bank of Japan and UK's Bank of England will announce their policy decisions this week. Bank of Japan will be the week to announce their policy on Tuesday, expected to keep rates unchanged but the commentary on a possible QE will be watched out for. Federal Reserve will announce their policy on Wednesday, expected to cut rates 25 bps, post a dovish Fed commentary last month, possibilty of a 50 bps rate cut is also talked about but it being a reality is slim. UK's Bank of England is expected to stay neutral on rates ahead of Brexit deadline, earlier BoE commentary suggested rate tightening.
US China Trade talks
Trade talks takes centre stage as U.S. negotiators will travel to Shanghai, China for trade talks, Chinese commerce minister to join for talks. Reports suggest that a change in stance by both countries is unlikely right away. Meetings in Shanghai on Tuesday & Wednesday will be the first face-to-face discussions since negotiations collapsed in May after President Donald Trump accused China of reneging on its commitments.
India-China trade talks
Commerce Minister Piyush Goyal will visit Beijing on Friday to take part in the crucial 8th round of RCEP Ministerial meeting during which he is also expected to hold talks with his Chinese counterpart to discuss measures to address burgeoning bilateral trade deficit.
Floor test in Karnataka
Newly sworn in Karnataka Chief Minister BS Yediyurappa will prove his prove his majority, floor test will take place in Karnataka assembly at 11am on Monday, 14 rebel MLAs has been disqualified by speaker reducing the house count to 210 from 224 seats earlier.
New CEO for Mindtree
Post acquiring majority stake and taking manangement at Mindtree, L&T will be announcing a new CEO for Mindtree on Friday, the incumbent leadership team at Mindtree post change of hands at company.