Will Nifty50 reclaim 17,000 this week?

Equity markets consolidated last week, after hitting one-month highs during the previous fortnight. 

Analysts believe the disconnect between the global and domestic economy, which stems from record-high inflation in major economies but easing of price rise back home, may keep valuations depressed in the near-term. 

The US recorded June inflation at 9.1%, the highest reading since 1981. India’s CPI inflation, on the flipside, eased for the second consecutive month to 7.01% last month. 

Given this, analysts expect the US Federal Reserve to stay aggressive with rate hikes.

According to VK Vijaykumar,Chief Investment Strategist, Geojit Financial Services, “Global equity markets are likely to remain turbulent till the US Fed’s meeting on July 27th. The most likely policy action by the Fed would be a 75-bps rate hike, but even a 100-bps hike cannot be ruled out.” 
 

Overall, the BSE Sensex index shed 721 points or over 1 per cent during the week, while the Nifty declined 1 per cent. 

Technical analysts believe traders can go long on benchmark indices if they hold above 100-weekly moving averages. 

Fundamentally, June quarter earnings will be the key trigger for equities.

Ambuja Cements, Hindustan Unilever, IndusInd Bank, Wipro, UltraTech Cement and ICICI Bank are some of the prominent companies slated to announce their Q1 results this week. 

That apart, volatility in commodity prices, global cues, and movement of rupee against the dollar will drive the sentiment. 

The domestic currency closed at 79.87 per US dollar last Friday, after hitting a record low of 79.96 during the day.

According to forex experts, 79.25 is a key resistance zone for the rupee. They see the domestic currency trading within a range of 79.50 to 80.50 this week.