WEEK AHEAD

Indian market remained under pressure for the second consecutive week amid mixed global and domestic cues. Last week, BSE Sensex fell 388.96 points (-0.73 percent) to end at 52,586.84, while the Nifty50 was down 93.05 points (-0.58 percent) to end at 15,763 levels.

The broader markets outperformed benchmarks, with BSE Midcap and Smallcap indices adding 0.29 percent and 1.36 percent, respectively, during the week gone by.

We expect the rangebound trade to continue in the coming week as well. The banking sector and global cues are key for any directional move going ahead, while earnings season, auto sales data & PMI numbers could drive stock-specific movements.

Prominent names like HDFC, Bharti Airtel, State Bank of India, Titan Company, Dabur, M&M, Cipla, GAIL India, Adani Ports, Hindalco Industries, and Divis Labs will announce their numbers in the coming week.

The interest rate decision by Monetary Policy Committee (MPC) in its three-day meeting between August 4-6, 2021 will be one of the biggest events next week.

Nifty50 wiped out all its gains in the last half an hour of trade to close marginally lower (-0.1 percent) on Friday, forming a Shooting Star pattern on the daily charts. On a weekly basis, it shed 0.6 percent and witnessed a Hammer pattern.

Technically, on daily and intraday charts, the market has formed a lower top formation which is broadly negative, but at the same time, the Nifty is hovering near 20 and 50 day SMA with modest volume activity. We are of the view that the broader texture of the market is still in the bullish zone, but due to non-directional activity indices may consolidate in the range of 15,600-15,900.