7 Major Stock Market Triggers for the Week

As we embark upon a new week of trading, here is a quick take on the key triggers for traders and investors for the week starting 26 July 2021.

1. Stock markets will react to the weekend results announcements of RIL, ICICI Bank and ITC. The big story to watch is Zomato which listed at 55% premium and will be critical to see if it sustains the Rs.1 trillion market cap.
2. Mega results announcements this week include Axis Bank, Kotak Bank, L&T, DLF, Tata Motors, SBI Life, Dr. Reddy, Maruti, IOCL, Sun, Britannia. Axis and Kotak will give the full picture of private banking asset quality.
3. A word of caution on the likely spike in VIX due to F&O expiry on Thursday. VIX is expected to scale up from 12 levels to 16 levels as rollovers could get impacted by banking volatility.
4. Globally, the focus will be on FOMC meet on 27-28 July for Fed language, although rates may remain at 0.00-0.25%.
5. Two more IPOs; Glenmark Life Sciences and Rolex Rings open this week. All eyes will be on Tatva Chintan listing on 29-Jul with GMP indicating 90% premium.
6. With rising crude oil and strengthening dollar, FIIs sold Rs.5,445 crore last week. Reduction in COVID cases will be positive for FII sentiments. Nearly 42.78 crore vaccines are administered and 97.36% is the recovery rate. 
7. Keep an eye on big data flows. India announces forex position, fiscal deficit and core sector, where MOM growth is critical. Global data focuses on US home sales, Fed rates, GDP, jobless claims; EU GDP flash, PMI; Japan PMI, IIP, retail sales, housing

The biggest indicator of buoyancy will be the new IPOs that get announced this week.