WEEK AHEAD

Last week, BSE Sensex ended 0.30 percent lower at 52,975.8, while the Nifty50 was down 0.42 percent to close at 15,856 levels.

We expect volatility to remain high due to the scheduled derivatives expiry of July month contracts. Besides, the update on the global COVID situation and US Fed meeting outcome on July 28 will be in focus.

On Monday, the market will first react to the earnings of Reliance Industries, ICICI Bank and ITC, which were announced in the after market hours on Friday and Saturday.

The June quarter earnings season will be in full force as more than 380 companies will release their quarterly scorecard in the coming week. The prominent names to watch out for would be Axis Bank, Kotak Mahindra Bank, Larsen & Toubro, DLF, SBI Life Insurance Company, Tata Motors, Dr Reddy's Labs, IndusInd Bank, Maruti Suzuki India, Nestle India, Tech Mahindra, Britannia Industries, Indian Oil Corporation, Sun Pharmaceutical Industries, and UPL..

Technically on Friday Nifty50, after morning volatility, turned positive in afternoon and remained higher for the rest of the session to close 32 points higher, but witnessed Doji Cross formation on the daily charts as the closing was near to its opening levels and there was mild selling pressure at higher levels. The index fell 0.4 percent during the week and formed a bullish candle on the weekly scale.

If the index sees a strong sustainable close above 15,900 then it can give much needed confidence to bulls who can then get the courage to march towards 16,300 levels. "In next trading session it remains critical for bulls to sustain above 15,768 levels to retain positive bias as breach of said level can induce more selling pressure on intra day basis.