F&O expiry, global cues, FII inflows among key factors that will guide markets next week

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Trading could be volatile in the forthcoming week as traders roll over positions in the F&O segment from the near month August series to the September series. The key barometers indices ended with small losses after high volatility for the week ended August 20. The Sensex and the Nifty retreated after scaling record highs during the week. Fears of the delta Covid-19 variant and China’s tech crackdown impacted sentiment. In the week ended on Friday, 20 August 2021, the Sensex fell 107.97 points or 0.19% to settle at 55,329.32. The Nifty 50 index lost 78.60 points or 0.48% to settle at 16,450.50. Going by the buzz on Dalal Street, here are the top factors that are likely to guide the market going ahead.

F&O expiry, FII inflows and rupee movement

The August 2021 F&O contracts will expire on Thursday, 26 August 2021. The trend in global stock markets, the progress of monsoon, the movement of rupee against the dollar and crude oil prices will dictate the trend on the bourses in the near term. Investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will be watched.

Covid updates

On the coronavirus front, investors would continuously watch out government’s course of action along with progress on the vaccination drive. Besides, as new Covid cases have seen a considerable decline, all eyes would be on state governments for further easing of the restrictions. Globally, the trend of rise in Covid cases on account of the delta variant, especially in the UK and Asia.

Listings

Meanwhile, shares of Aptus Value Housing Finance and Nuvoco Vistas will list on bourses on Monday.

Global cues

Overseas, China’s industrial profits data for July will be announced on 27 August 2021. In Japan, the Jibun Bank Services PMI Flash data for August will be announced 23 August 2021. The United States Durable Goods Orders for July will be announced on 25 August 2021. The Euro Area Markit Manufacturing PMI Flash data for August will be declared on 23 August 2021.

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