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Fed rate hike and Q1 numbers of big boys to seal the fate of Nifty bulls this week – Economic Times

After recording the highest weekly gain in the last 75 weeks, Nifty bulls will try hard to maintain the momentum on Monday after six days of non-stop rise. As the market opens, the attention would turn to index heavyweights like , and , which announced their numbers after the market closed on Friday. Infosys was scheduled to release its June quarter report later in the day.

Besides FII flows, US FOMC outcome, movement in the rupee-dollar trade, crude oil price trajectory and the scheduled expiry of July month derivatives contracts will keep the participants busy this week. Here’s breaking down the key triggers to track:

Q1 earnings
Apart from the heavyweights that announced their results after the market closed on Friday and during the weekend, a long list of prominent companies will be announcing the results this week.

Monday itself will have Axis Bank,

and coming out with their Q1 numbers. In subsequent days, , , L&T, , , , Nestle, , Dr Reddy’s, and are among the major companies that will come out with their quarterly report cards.

Fed meet outcome
The US Fed would be meeting on July 26-27, in which Jerome Powell is likely to slow the pace of interest rate hikes. Market participants will attempt to interpret between the lines to assess the economy’s route, said Apurva Sheth of Samco Securities. “The Fed would attempt to keep inflation in check without harming the labour market. Besides that, the release of the United States’ QoQ GDP figures would impact market sentiment,” Seth said.

Rupee
The Indian rupee snapped its 11-week losing streak on Friday, benefiting from RBI intervention after it fell through the 80-per-dollar mark. It ended at 79.85. “All eyes are on the Fed statement for further cues and direction. Rupee range till then can be seen between 79.75-80.20,” said Jateen Trivedi of

.

F&O expiry
Ruchit Jain, Lead Research,
5paisa.com, said FIIs covered some of their short positions in index futures, which led to the positive momentum. “Since momentum readings have approached the overbought zone, it is prudent to look to book profits now on long positions and take some money off the table. On the flipside, the immediate support for Nifty is placed around 16,590, followed by the recent gap zone of 16,490-16,360,” he said.

FII flows
FIIs were net buyers across the last week, barring Friday. Market experts now say that the relentless selling by FPIs, which started in October last year, now appears to be over.

“It appears that INR depreciation is almost over for now. The dollar index, which had moved above 109, is now down to 107.21. This is one of the factors that have contributed to the change in FPI strategy,” Dr VK Vijayakumar, Chief Investment Strategist at

, said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)