Market outlook this week: US Fed speech, domestic inflation data, budget to drive stock markets

Indian stock indices concluded on a high note in July's first week, with the Sensex and Nifty both up one percent, and the midcap index up more than two per cent, extending the market's positive run for the fifth consecutive week.

Domestic and foreign variables will shape the market picture throughout the coming week.

On the domestic front, India's Union Budget, which will be presented on July 23, is an important event, and the first quarter earnings season begins this week. Key firms such as Tata Consultancy Services (TCS) and HCL Tech will report profits on July 11 and 12, respectively. In addition, the June CPI statistics, business announcements, foreign capital inflows, and crude oil prices will all have a significant impact on markets in the next week.

Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, said, "India's Union Budget in July is a key event, with hopes pinned on growth-oriented policies and the development of the monsoon season, which will also be significant points of interest for investors and traders.

"On the international front, market participants will closely monitor key events, including Fed speech, UK GDP data, US Core CPI Inflation, Initial Jobless Claims, and US PPI data.

Arvinder Singh Nanda, Senior Vice President of Master Capital Services Ltd, said, "The Nifty currently has significant support around the 24,100 level. A breach of this support could lead to a further decline towards 23800 levels. A close above 24,450 may push the Nifty towards 24,600 levels. Consolidation is expected with resistance at 24,400-24,500 and immediate support at 24,200."

With ageny inputs