This week's potential market drivers for the Sensex and Nifty

India’s gross GST revenue collection figures and
sustained foreign fund inflows boosted investor sentiments last week, causing
Indian benchmark indices to close in the green. IT giants such as TCS, HCL, and
Wipro will announce their latest quarterly performance along with major
economic data such as the Index of Industrial Production (IIP), Consumer Price
Inflation (CPI), Balance of Trade data, and US Inflation data, which will be
released this week.

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Quarterly
Results: This week, investors will be primarily focused on
the quarterly results of industry heavyweights including Federal Bank ,HCL
Technologies,TCS, Wipro, Avenue Supermarts, Tata Metaliks, Tata Steel Long
Products, Tata Metaliks, etc.

The
Index of Industrial Production (IIP) statistics, which
will be announced on July 12, will be closely watched by economic stakeholders.
The June report on the Consumer Price Index (CPI) will also be released on that
day. In May 2023, inflation in India increased by 0.51 percent, according to the
Consumer Price Index. The Wholesale Price Inflation Index (WPI) and Balance of
Trade data are also expected to be released on July 14.

Increase
in FPI

Chief Investment Strategist at Geojit Financial
Services, Dr. V K Vijayakumar, reported that Rs 21,943 crore of FPI flows into
India (including bulk deals) continued through July 8. If current FPI inflow
trends continue, the Rs 43,838 crores and Rs 47,148 crores recorded in May and
June will be surpassed in July. 

He added that a ‘U-turn’ in foreign portfolio
investor (FPI) flows, which went negative Rs 34,626 crores in the first two
months of the year (combined), has been
a major factor in the market’s remarkable rally since March’s lows. Foreign
portfolio investors (FPIs) have consistently purchased construction,
manufacturing, and finance equities.

They have increased their purchases of FMCG and
electricity as of late. The IT industry’s sales momentum keeps rolling.
Vijayakumar argued that the market was “expensive, but not yet in bubble
territory” because of the continued buying by foreign institutional
investors.

Rupak De, senior technical analyst at LKP
Securities, stated, “The Nifty experienced a significant decline after
failing to sustain its position above 19,500. This decline caused the index to
fall below the 21EMA on the hourly chart, indicating a growing adverse market
sentiment.” 

In addition, the hourly RSI has demonstrated a bearish
crossover, adding to the pessimistic outlook. The nearest support level is
19300, while the resistance level is still at 19,500.

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