Market Week Ahead: 10 factors to keep investors busy amid July F&O expiry

Market Week Ahead: 10 factors to keep investors busy amid July F&O expiry

The market closed flat with a positive bias in the passing week as the rally in Reliance Industries (post solid Q1 earnings, bonus issue of 1:1 and new Jio strategy) and technology stocks (after Wipro’s buyback worth Rs 11,000 crore) offset the initial fall due to ITC that cracked 13 percent on a hike in cigarette cess.

Strong progress in monsoon also led major support to the market in the week gone by. The 50-share NSE Nifty gained 0.29 percent at 9,915.25 and the 30-share BSE Sensex was up 0.03 percent at 32,028.89, continuing the upside for third consecutive week.

Experts expect the consolidation to continue in the coming week as July derivative contracts will expire on Thursday and traders will roll over their F&O positions to August series. They expect the expiry around 9,850-9,920 levels.

Earnings from big firms like Bharti Airtel, Maruti Suzuki, ICICI Bank, HDFC, HDFC Bank, Axis Bank, Yes Bank, Hero MotoCorp, Dr Reddy’s Labs, Larsen & Toubro, HCL Technologies, ONGC etc and Federal Reserve’s two-day meeting will be closely watched in the coming week.

Overall the market trend is expected to remain positive and the Nifty may make an attempt to move towards five digits mark as earnings, so far, have been stable and monsoon has progressed well, experts feel.

“So far the earning remained mix, however expectations of better earnings are very much on the card going ahead. Hence, we could say, indices are likely to dance to the tune of corporate results and behave accordingly,” Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments said.

Vijay Singhania, Founder-Director of Trade Smart Online expects a fresh rally to trigger once the 9920-9930 zone is broken on closing basis, this would then open up the door for the 10,000 milestone. On the downside, 9840 is the crucial support zone, he said.

In the current consolidation, the underperforming sectors have started performing on the back of short covering. This pattern is likely to continue in the coming weeks, Amit Gupta of ICICIdirect feels.