Momentum is continued for five consecutive weeks. Nifty gained 1.2% and Sensex gained 1.2% in last week. While Midcap index gained 0.2% and Smallcap index lost 0.4%. Markets are in better shape backed by better than expected tech companies quarterly earnings, positive global cues and progress in the development of COVID-19 vaccine. On Monday, the market will first react to HDFC Bank’s Q1 results announced on July 18. The progress in the development of a vaccine for COVID-19 was one of the key reasons behind the rally in global equity markets. In India, both Bharat Biotech International, which developed COVAXIN, and Zydus Cadila which has named its vaccine ZyCOV-D, have started clinical trials this week, globally more than 140 vaccines are in race. India has witnessed a consistent rise in COVID-19 cases with over 30,000 cases coming out each day for the last 4 days, India has so far recorded 10,38,716 cases, which includes 26,273 deaths.
All eyes will be on the listing of speciality chemical company Rossari Biotech next week as listing date is July 23, it would be the first listing during the lockdown and second after SBI Card in 2020. The board of directors of M&M Financial Services on July 18 approved rights issue of fully paid-up equity shares, the issue has been fixed as Rs 50 per fully paid-up equity share. Given that no major event is lined up for next week the market is expected to consolidate further and may even attempt reclaiming the 11,000 mark, while corporate earnings and global cues will decide the market trend.
Key factors for the week:
• Covid 19 pandemic remains a key factor to watch out for in the coming weeks.
• Oxford University Covid 19 vaccine phase 1 trial results may be announced on Monday 20th July 2020. Oxford phase 3 clinical trial is going on. Reports says oxford covid 19 vaccine is highly successful. Official announcement on Monday may give further boost to markets across the world.
• Rossari Biotech will get listed on July 23.
• More than 260 corporates will release their quarterly numbers in the coming week which included March as well as June quarter earnings, March quarter earnings season will end on July 31 due to lockdown. This includes frontline stocks like ICICI Bank, Axis Bank, Bajaj Finance, Hindustan Unilever, ITC, Bajaj Finserv, Bajaj Auto, ACC, Larsen & Toubro, Ambuja Cements, Asian Paints, HDFC Life, ICICI Prudential Life Insurance Company, SBI Life, HDFC AMC, SBI Card and JSW Steel etc.
The Nifty closed above 10,900 levels last week, the highest closing since March 6, Nifty closed above 10870 (200 DMA) we can expect the ongoing rally to continue towards 11,200 levels. The maximum Put open interest shifted to 10,700 strike and is also likely to act as a major support in the coming week. Maximum call open interest at 11,200 followed by 11,000 and maximum put open interest at 10,700 followed by 10,800. Nifty could trade in the range between 10,700-11,200. Move above 11,000 would lead to another leg of short-covering towards 11,200, if Nifty sustains above 11,200 then lightning rally towards 11,500 can be seen. India VIX reached to 24.16 levels during the last week, which can give big boost to bulls.