Week ahead in share market: 5 things you need to know for upcoming week

Benchmarks Sensex and Nifty ended the week on a bearish note on Friday , tracking weak global cues amid concerns of a fresh set of lockdowns on back of the rise in coronavirus cases worldwide. Sensex closed 143 points lower at 36,594 and Nifty fell 45 points to 10,768. On Thursday, Sensex ended 408 points higher at 36,737 and Nifty gained 107 points to 10,813. Traders said markets worldwide turned volatile amid top economies recording a consecutively higher single-day rise in the tally of coronavirus cases.

Here are the top 5 factors that will lead the stock market in the upcoming week:

1. Global cues

Global market trends will continue to dictate the domestic markets, in the absence of any major domestic event. Where Wall Street ended on a positive note, Asian indices closed bearish as investors turned cautious on the rising number of COVID-19 cases across the world and its impact on economic recovery. However, European markets reversed the trend and closed the week higher, on hopes of stimulus amid upbeat economic data.

2. Rossari Biotech Rs 500-crore IPO

Rossari Biotech is all set to break the four-month dry run in the initial public offerings (IPO) market with its Rs 500-crore IPO.

The initial public offerings (IPO) market is all set to see its first listing with the Rossari Biotech since SBI Cards and Payment Services IPO on March 2. Rossari Biotech's 500-crore IPO, that comprises a mix of fresh issue and offer for sale (OFS), will open its subscription on July 13 and the public issue will close on July 15. The IPO comprises fresh issue of shares to the tune of Rs 150 crore and sale of more than 1 crore equity shares by the company's promoters through offer-for-sale route. The issue size is expected at around Rs 494-496 crore. The shares will be listed on BSE, NSE on July 23, 2020.

3. Quarterly earnings

On the earnings front, while most of the major result announcements have been published for the quarter ended March 2020, investors will now await the Q1 earnings that started with Tata Consultancy Services (TCS) announcing its financial numbers last week. "It is expected that a definitive movement in markets may be visible once India Inc. unveils its Q1 FY21 earnings performance with its first-hand analysis of ground-level reality," said Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote.

Following are the major companies that are scheduled to report June quarter earnings in the second week of July:

July 14: Delta Corps, Mindtree and Wipro

July 15: Bandhan Bank, Federal Bank, Infosys, L&T Infotech and Minda Corp

July 16: Bajaj Consumer and Cyient

July 17: Balkrishna Industries, Britannia Industries, Granules India and ICICI General Insurance

July 18: HDFC Bank and M&M Financials

4. COVID-19 induced lockdown in some regions

Contrary to the last week, when equity markets were buoyed on optimism over vaccine development and better-than-expected economic data across countries, markets this week turned volatile amid fresh wave of coronavirus cases hitting top economies as well as domestic grounds.

The challenges with respect to rising COVID-19 cases and recovery of economic growth and any extension or resetting of lockdown measures will continue to add to investors' worries worldwide.

Vinod Nair, Head of Research at Geojit Financial Services said, "Global stocks were mixed following record infections in the US, which led to worries of delayed global economic recovery, while Indian markets worried about record cases of infections and increasing localised lockdowns."

India's COVID-19 tally climbed to 8.5 lakh cases with over 22,800 deaths on Sunday. Worldwide, the total tally has exceeded 12.4 million, with 559,047 fatalities on Sunday, as per WHO data.

5. Technical outlook

Nifty has been consistently moving volatile in the last few sessions. As per technical indicators, as long as the crucial support of 10,660-10,560 remains intact, Nifty could first surpass the 10,850 mark and head towards 11,000-11,200, its resistance levels.

On Nifty's near term technical outlook, Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote said, "Nifty index is trading around the resistance of rising wedge and approaching the crest of the wedge. The participation in the rally is not broad-based, only a few heavyweights are driving the index higher. We believe the market is little stretched in the short term and expect a very limited upside. A break below 10,600 will significantly dent the strength of the bulls."

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