Nifty resistance seen at 8630; GST, July expiry key this week

The market is likely to trend higher on Monday with supportive global cues. Nifty's crucial resistance is seen at 8630. The street expects 15-20 percent Nifty earnings per share (EPS) growth for next two years.

Big cues this week for the market will be GST discussion, July series expiry and FOMC meeting on July 26-27.

Axis Bank Q1 asset quality worsened in the first quarter with gross NPA rising 57 percent sequentially due to fresh slippages of over Rs 3600 crore. Vedanta sweetened its merger with Cairn India for the minority share holders. It had offered four preferential shares along with a Vedanta share for every share of Cairn India held.

Last week, the market defended 8500-mark amidst weak Q1 earnings by few index heavyweights. Foriegn fund flows have been strong, with foreign instituional investors (FIIS) net buyers for 11 straight sessions. Domestic investors have been net sellers in eight sessions, sold net sold Rs 4500 crore in July 2016.

Asian shares held near nine-month highs as worries over the impact of Britain's Brexit vote eased amid efforts to maintain growth, while the dollar was buoyed by a run of solid US economic data.

Policy makers from the Group of 20 countries agreed to work to support global growth and better share the benefits of trade, in a weekend meeting dominated by the impact of Britain's exit from Europe and fears of rising protectionism. MSCI's broadest index of Asia-Pacific shares outside Japan. Japan's Nikkei rose 0.4 percent.

US stock prices marked four straight weeks of gains last week, supported by renewed strength in the tech and telecom sectors and a stronger-than-expected report on manufacturing.

Crude prices inched down, staying not far from two-month lows hit in the previous session, amid worries over a global oil glut.

A strong dollar and the fourth weekly rise in the US oil rig count have helped relieve pressure on crude futures. The world's biggest economies will work to support global growth and better share the benefits of trade, policymakers said on Sunday after a meeting dominated by the impact of Britain's exit from Europe and fears of rising protectionism.