F&O expiry, Q1 results among key factors that may guide markets this week

Trading could be volatile in the forthcoming week as traders roll over positions in the F&O segment from the near month July series to August series. The July 2021 F&O contracts will expire on Thursday, 29 July 2021. The near term trend of the market will also be dictated by June 2021 quarterly earnings. Trend in global stock markets, the movement of rupee against the dollar and crude oil prices will dictate trend on the bourses in the near term. Investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will also be monitored.

Q1 results

Traders will be eyeing lots of important earnings announcements scheduled for the week. Axis Bank, Coromandel International, Kotak Mahindra Bank, Larsen & Toubro, Mahindra & Mahindra Financial Services, SBI Life Insurance Company, Tata Motors, Aarti Drugs, Dr. Reddy’s Laboratories, Granules India, Indigo, ICRA, Maruti Suzuki India, Nestle India, Pfizer, United Breweries, Colgate-Palmolive (India), PVR, TVS Motor Company, Tech Mahindra, BHEL, Indian Oil Corporation, UPL, Macrotech Developers, Sun Pharma, Zydus Wellness will be among many to announce their numbers during the week.

Monsoon

Progress of monsoon and developments in the monsoon session of the Parliament will also be closely watched. The monsoon session of the Parliament began on Monday (19 July) and it will conclude on 13 August 2021. The government and the opposition are likely to discuss raging issues of the Covid-19 pandemic, farmers’ protest, fuel prices hike and vaccination strategy.

Covid update

On the coronavirus front, investors would continuously watch out government’s course of action along with progress on 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.

Global cues

Overseas, China’s industrial profits data for June will be announced on 27 July 2021. The US Federal Reserve (Fed) will announce its interest rate decision after its two-day policy meeting on 28 July 2021. The United States Durable Goods Orders for June will be declared on 27 July 2021.