INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Volatility continued to grip Dalal Street during the week gone by, but the bulls emerged triumphant at the end
Investors largely appeared resilient to trade war tensions, as the US officially pushed the button early Friday and imposed the first import
duties on $34 billion worth of Chinese goods.
For the week, the SP BSE Sensex added 0.66 per cent to settle at 35,657 while NSE's Nifty50
ended 0.54 per cent higher at 10,772.
Going into the next week, June quarter earnings and global factors will be key determinants of market
June quarter numbers from next week
IndusInd Bank and TCS are slated to declare their Q1 results on Tuesday, July 10, while Infosys is scheduled to release its on Friday, July
Brokerages believe the IT sector is expected to show accelerated growth after six quarters, helped mainly by currency tailwinds
"We expect divergent growth trends within Tier-1 IT with HCL Tech and TCS posting stronger growth, whereas Wipro and Tech Mahindra expected
to post a sequential decline," HDFC Securities said in an earnings preview.
IIP data on July 12The government is expected to announce May
industrial production data on Thursday, July 12
The index of industrial production rose 4.9 per cent in April over a year ago.
Progress on monsoonHeavy rains hit parts of Maharashtra,
Gujarat, Goa and Karnataka on Saturday
According to a report by Skymetweather.com, rainfall activity will enhance over Odisha and Chhattisgarh
Moderate to heavy rainfall will also continue over central India
Pockets of Jammu and Kashmir, Himachal Pradesh and Uttarakhand may receive short spells of rain
Down South, an offshore trough is likely to enhance rains
This should boost confidence of investors, who were earlier discouraged a sudden slowdown in monsoon progress.
Geopolitical tensionsAfter
the trade war kicked off officially on Friday, the Chinese Commerce Ministry said the country was forced to retaliate in order to defend the
core interests of the country and the people
In response to this, US President Donald Trump has threatened to tax Chinese goods worth $500 billion, roughly the value of all US imports
Investors across the globe are expected to monitor these developments closely.
US jobs dataThe US economy created more jobs than expected in
Non-farm payrolls rose by 2,13,000 jobs last month as manufacturers stepped up hiring, Reuters reported quoting the US Labour Department
The economy added 37,000 more jobs in April and May than previously reported
Steady wage gains pointed to moderate inflation pressures that should keep the Federal Reserve on a path of gradual interest rate increases
this year, the report said.
Global cuesUS President Donald Trump is expected to meet with United Kingdom Prime Minister Theresa May next
Trump would like a quick trade deal with Britain once Brexit is finished, the US ambassador to Britain said on Friday
The trip has been on-again, off-again for several months as the Trump administration expressed concern over the growing prospect of
demonstrations and protests during his visit to London.
Technical factorsThe Nifty50 index on Friday formed what resembled a 'Shooting Star'
A larger picture shows that the sideways activity over last few weeks has formed a distribution triangle
The last leg of the triangular pattern seems to be near its maturity
On the higher side, 10,800-10,860 proved to be a key hurdle zone and is likely to do so going ahead, says Gaurav Ratnaparkhi, Senior
Technical Analyst, Sharekhan by BNP Paribas
"Thus, from a trading perspective, one should be looking to create short positions
On the downside, the Nifty is expected to test the May low of 10,417 in the short-term," Ratnaparkhi says.
Other factorsCrude prices and
movement of rupee against the US dollar will also influence investor sentiment.
Besides, China's inflation data for June is slated to
release on July 10 while US core inflation data for June will be declared on July 12
This apart, movement of crude prices will be watched closely.
