Q1 earnings, global cues to drive stock markets this week

Trading sentiment will be influenced by overseas investment trend, the movement of rupee against the US dollar and crude oil price

Stock market trading is expected to be dominated by corporate earnings in the near term, with investors also keeping a close watch on global factors amid geopolitical unrest after a Malaysian Airlines Jet was shot down at the Ukraine-Russia border.

Trading sentiment will also be influenced by overseas investment trend, the movement of rupee against the US dollar and crude oil price.

Besides, progress of monsoon will also be closely tracked by the investors even as the crucial Southwest Monsoon finally covered the whole country reaching west Rajasthan, Saurashtra and Kutch region and the North Arabian Sea after some delay.

Prominent corporate results this week include HDFC, HDFC Bank, Idea Cellular, Cairn India, Wipro, ACC, Ambuja Cements and Punjab National Bank.

"This week, we expect markets to correct based on developments on the Israel crisis and Russia-Ukraine crisis. Further, the earnings season Q1-2015 has already started and TCS has surprised the market positively," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.

Investors will also track global cues. Key data releases that will indicate strength in international markets are Chinese HSBC Manufacturing PMI, US Core CPI, US existing home sales and US Core Durable Goods Orders.

"In the absence of any major macro-economic event on domestic front, we believe global cues and prevailing earning season will drive the markets ahead. On the benchmark front, Nifty has a crucial resistance at 7,700 and its sustainability above that mark, would again trigger buying momentum across the board," said Jayant Manglik, President-retail distribution, Religare Securities Limited.

Over the past week, the BSE benchmark Sensex gained 617.21 points, or 2.46 per cent, to end at 25,641.56.