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India Week Ahead: Q1 Earnings, F&O expiry & monsoon progress to guide markets

Shiv Gupta
Earnings continue with Kotak Mahindra Bank, TVS Motor, United Spirits announcing numbers on Monday.

Indian market on Friday closed in the red for the second straight day, the slide turned market net negative for the week. Nifty settled above the  11,400 level; slipped 1.5% in trade on Friday.

For the week Sensex closed down 1%, Nifty fell 1.2%, Nifty Bank index lost ground by 2.7%. Infosys 8%, Sun Pharma 3%, Wipro 2%, HDFC 2%, NTPC 1.8%, BPCL 1.7% were among Nifty gainers whereas Yes Bank -11.4%, M&M -9.5%, Hero Motocorp -7.2%, Eicher -6.8%, Gail -6%, IndusInd Bank -6%, Bajaj Auto -5.7%, Indiabulls Housing -5%, Bharti Airtel -4.8% were among Nifty losers.

For the week Nifty Resistance is seen at 11730, 11570 whereas Support at 11380, 11220. Bank Nifty Resistance is seen at 30700, 30000 whereas Support at 29450, 28500.

Let's a take look at some events which will guide the markets.

RIL & HDFC Bank reaction to results
Shares of RIL & HDFC Bank, two biggest constituents of Nifty index will react to the quarterly numbers released post-market close on Friday. While RIL posted a better than expected net profit of Rs 10,104 cr. RIL also announced deal with Brookfield for an investment of over Rs 25,000 cr in its tower arm. HDFC Bank posted an in-line with estimate profit of Rs 5,676 cr, growth of 21%, reported a slight increase in NPAs.

Q1 Earnings
Earnings continue with Kotak Mahindra Bank, TVS Motor, United Spirits announcing numbers on Monday. HDFC Life, HUL, L&T, Zee Ent on Tuesday. Asian Paints, Canara Bank on Wednesday. Ambuja cements, Bajaj finserv, Bajaj Finance, Biocon, Tata Coffee, Tata Motors on Thursday. ABB India, Bajaj Auto, JSW Steel, Maruti Suzuki on Friday and ICICI Bank will report earnings on Saturday.

F&O expiry
Market may see some volatility as traders look to rollover positions as July F&O series expires on Thursday. 
 
Trust vote in Karnataka
Amid high drama last week, the Karnataka assembly convened - the CM of state asked the speaker to hold the Trust vote on Monday. Nearly 15 MLAs of Congress-JD(S) has resigned, reducing the govt to a minority. 

Monsoon progress
Progress of Monsoon will be watched out, as IMD said that the dry spell will continue for another week, monsoon may pick up from August onwards. As per IMD data overall India rainfall from June 1-July 19 is 277.9 mm which is 18% below normal.

Parliament session ends
The First session after Modi-Sarkar took charge of office will end, Monsoon session of Parliament concludes on Friday. Nearly 9 bills out 13 presented in the House has been passed, overall the session has turned out to be productive.

Chandrayaan-II launch
The indigenous Chandrayaan 2 lunar mission, which was earlier scheduled to launch on July 15, will now liftoff on July 22, rs 1000 cr mission which could make India the fourth country to successfully make a soft landing on the moon, is scheduled to take off from Sriharikota in Andhra Pradesh at 0243 IST. The mission was supposed to take off on July 15 but was stopped an hour before liftoff after scientists observed a technical snag. ISRO has called Chandrayaan-2 the most complex mission ever undertaken by India.