In the absence of major domestic cues, a few key global events will be in focus on Dalal Street this week, at a time when concerns about aggressive hikes in COVID-era interest rates and their impact on economic growth continue to rattle financial markets.

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All eyes will be on a testimony by Fed Chair Jerome Powell — as the US central bank faces the task of taming inflation without disrupting growth.

A slew of macroeconomic data points will also be tracked closely.

The week that was

Indian equity benchmarks logged their worst weekly performance in more than two years, dragged by a sell-off across sectors. Besides the Nifty Bank, the financial, IT, consumer durables and metal indices lurk in the bear zone — a stock or index is said to be in bear territory once it loses at least 20 percent of its value from the peak.

Barring Apollo Hospitals, all of the Nifty50's constituents suffered weekly losses.

Broader markets also bled, reflecting the weakness in headline indices.

The road ahead

"The aggressive stance of the US central bank has triggered the fear of recession, which is cascading to markets across the globe. However, easing of global energy supply could change the dynamics ahead. Amid all, participants should follow the trend, which is indicating more pain ahead," said Ajit Mishra, VP-Research at Religare Broking.

Technical view

A short-covering bounce cannot be ruled out this week, according to Yesha Shah, Head of Equity Research at Samco Securities.

Shah recommend traders to maintain a negative-to-neutral outlook and use any bounce as an exit opportunity.

She sees immediate support at 15,200 and and immediate resistance at 16,200.

Mishra is of the view that the Nifty50 is inching towards the 14,800-15,000 zone, having given up major support around 15,650 decisively.

Here are the key factors and events that are likely to influence Dalal Street in the week beginning June 20:

GLOBAL CUES

FII activity

Institutional fund flows will continue to be on investors' radar, with Dalal Street on track to finish a ninth straight month of equity selling by foreign institutional investors.

Domestic corporate action