This week in a nutshell (July 26th to July 30th)

This week in a nutshell (July 26^thto July 30^th)

Technical talks

NIFTY opened the week on 26^thJulyat 15,849and closed on 30^th July at 15,763, a decline of 0.5%.NIFTY has been getting strong resistance around the 20 DMA of 15,788 throughout the week. This remains the crucial level to watch out foras it’s capping Nifty’s upward movement.

Weekly highlights

·         FIIs were net sellers each day of the week with a net total outflow of Rs 108,250 m. DIIs continued to give support to the market through daily net buying. DIIs pumped in Rs 82,550 mn in the market this week.

·         The US equities kept up with all time high levels through the week. Strong quarterly results and Fed rates retained at near zero levels aided the positive sentiments.

·         An increase in regulatory crackdown on Chinese tech companies led to a selloffin Chinese equities. Whether this remains a long term concern and other Asian markets will see the benefit of higher allocation remains to be seen.

·         International Monetary Fund (IMF) has cut India’s FY22E GDP forecast to 9.5% due to setback from the second wave of Covid-19.

Things to watch out for next week

·         July 2021 monthly auto sales data will be released in the coming week. This data would be crucial to understand the demand trend post easing of lockdowns.

·         RBI’s Monetary Policy Committee (MPC) is scheduled to meet between August 4^th to 6^th. MPC’s comments on inflation, economy growth will be something to watch out for.

·         The quarterly result season continues with companies such as HDFC, Bharti Airtel, and Dabur reporting earnings next week. Management commentary on consumer demand post easing of lockdowns and near term outlook will be critical.