WORLD EVENTS THIS WEEK :

MONDAY, JULY 20

Canada is to report on wholesale sales.

TUESDAY, JULY 21

The Reserve Bank of Australia is to publish the minutes of its latest monetary policy meeting, giving investors insight into how officials view the economy and their policy options.

Switzerland is to publish data on the trade balance.

The U.K. is to release a report on public sector borrowing.

WEDNESDAY, JULY 22

Australia is to publish data on consumer price inflation, while Reserve Bank of Australia Governor Glenn Stevens will speak at a public event.

The Bank of England is to publish theminutes of its July policy meeting.

The U.S. is to release private sector data on existing home sales as well as a government report on crude oil inventories.

THURSDAY, JULY 23

The Reserve Bank of New Zealand is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision.

Japan is to produce a report on the trade balance.

Spain is to release its quarterly employment report.

The U.K. is to release data on retail sales.

Later Thursday, the U.S. is to report on initial jobless claims.

Canada is to publish data on retail sales.

FRIDAY, JULY 24

New Zealand is to report on the trade balance.

China is to publish the preliminary reading of the HSBC manufacturing index.

The euro zone is to release survey data on private sector activity.

The U.S. is to round up the week with reports on manufacturing activity and new home sales.

MARKET WEEKAHEAD:

🔵 Corporate earnings, developments in parliament and the progress of monsoon will be key drivers for the markets. 

🔵 Though we have entered the earnings season with low expectations, management commentary holds the key to determine trends in the respective sectors.

🔵 Results are expected from Reliance, Axis Bank, HDFC Bank, HUL, Infosys, Bajaj Auto, Biocon, GAIL, Lupin, CCL, LIC Housing, Ultratech, Asian Paints and Wipro.

🔵 Lot of heavy weights are expected to announce their earnings next week - Reliance, UltraTech Cement, Hindustan zinc, Cairn, Idea, Infosys, Hind Unilver, HDFC Bank, Asian paint, Eicher Motor, Bajaj Finance, Wipro, Lupin, Bajaj Auto, Axis Bank, Gail and others.

🔵 The results of Reliance Industries and Infosys shall determine the tone of the markets.

🔵 One stock to look out for in the private banking space is HDFC Bank. Reliance Industries has also given a breakout and it can again touch around 1120 levels in the short term. Nifty and Bank Nifty both look strong and could continue their upward journey

🔵 Last week, the government reviewed the GST Bill clause by clause and reached a consensus on most issues including providing compensation to states.

🔵 The monsoon session of parliament beginning Tuesday is expected to lead to volatility in the stock markets as political controversies are likely to disrupt proceedings and the passage of key bills, namely GST, land, labour and tax reforms.

🔵 The progress of monsoon has not been satisfactory so far. 

🔵 According to the India Meteorological Department, cumulative rainfall till date is 6 percent below the long-period average. 

🔵 Although kharif (summer crop) planting is up about 62 percent year-on-year, the quantum of rainfall this month is crucial to avert damage.

🔵 The Nifty has been resilient to global events so far and has been able to break the key resistance zone of 8,400-8,500. 

🔵 The domestic bulls have regained strength as can be seen from outperformance of mid- and small-cap stocks, which have rallied sharply between 15-25 percent in a short span of time.

🔵 The passage of key bills in parliament and a pick-up in monsoon rains could act as market boosters.

🔵 The Federal Reserve’s FOMC (Federal Open Market Committee) meet on July 28-29 may give clues to the possibility of a hike in U.S. interest rate. 

🔵 Closer home, RBI policy is due on August 4.

🔵 The markets are way ahead of fundamentals and a weak results season will prove this point in the days to come.