Earnings Season Is Upon Us And The Stock Market Is looking To Make Some Big Moves This Week.

According to the market research companies reports, the week started on a low note for the Indian markets with a record low rupee, mixed set of quarterly earnings, and fears that the US Fed is set to hike policy rates aggressively after a higher-than-expected inflation print.

The 30-pack BSE Sensex tanked 721.06 points or 1.32% to 53,760.78 during the week ended July 15, 2022, and the Nifty slipped 171.40 or 1.06% to 16,049.20.

Markets extended losses after a private report lowered India’s gross domestic product growth projection for 2023 by 70 basis points from 5.4% to 4.7%. The report also cited headwinds to economic recovery as reasons for lowering GDP growth estimates in FY2224 and FY2325 by this much.

TCS‘ June quarter numbers were a miss on margin, profit and dollar revenue growth, even as the management commentary suggested demand visibility for FY23 remains intact

The Indian rupee fell for five consecutive days and touched a new record low of 79.96 against the US dollar on Friday as investors chose to stay away from riskier assets. Rupee depreciation is in line with all emerging market currencies. The Indian rupee has its eyes set on the 81 to the dollar mark in the near term, says Vice President – Commodity and Currency Research, at Religare NSE

“Rupee depreciation is in line with all emerging market currencies,” he says. “The Indian rupee has its eyes set on the 81 to the dollar mark in the near term.”

In the forthcoming week, investors would first react to results of HDFC Bank NSE, ICICI Prudential Life Insurance Company NSE, Nelco Ambuja Cements NSE, AU Small Finance Bank NSE, HDFC Life Insurance Company Hindustan Unilever NSE ICICI Lombard General Insurance Company NSE JSW Energy NSE L&T Finance Holdings CEAT Indusind Bank Wipro Crisil Cyient PVR HDFC AMC Ultratech Cement among others.

The year 2022 is going to be one of the most significant years in the history of India. The Monsoon Session of Parliament will begin on July 18, 2022 and will go on till August 12, 2022. Apart from important Bills and discussions, this session holds a lot of importance given the fact that both the election of the President of India and the Vice President of India will take place during the session.

Foreign exchange reserves in India decreased to $588.31 billion on July 1 from $593.32 billion in the previous week.

Head of Research at Geojit Financial Services NSE 3.24 % said that volatility has re-emerged and investors have turned their focus on upcoming Fed policy in the backdrop of heightened US inflation. Fall in crude prices and reduction in FII selling added optimism to the domestic market while gloomy IT results, depreciating rupee and fear of global recession are restricting sizable up move,” he added.

We have a pretty good feeling about Nifty and we’re not going to tell you otherwise.

The index is hovering near the 100% extension of the previous move, and we have 78.6% retracement of the previous fall at 16450 mark and that’s accompanied with placement of Span A hurdle of Ichimoku, which means for the coming week we don’t expect a one sided move in the market and we continue to remain cautious.

A move above 16275 might help the index move towards 16450 but we need to check whether it sustains there or not. We would advise traders who are looking for short term profits to keep booking them at higher levels. On the downside, 15850 would be an important support for short term and breaching it might bring back nervousness back to our markets.”

The 16,000 mark is crucial not just from a sentimental or psychological point of view. It is also a very crucial support level as it is the 50-day DMA (daily moving average) of Nifty. The long-term and the medium-term outlook of the market would be positive till the time it is above 16,000. A breach below that level would give bearish signals.

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