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The upcoming monetary policy review coupled with the ongoing financial results season will influence the trajectory of key equity indices in the week ahead.

Accordingly, market observers, expect a status-quo on key lending rates as well as hopes of healthy Q1 earnings to push the indices' higher.

Besides, the direction of foreign fund flows, will also impact investors' sentiments.

Earlier, India's equity markets ended the previous week almost on a flat note - with NSE Nifty50 down by 0.59 per cent, while S&P BSE Sensex was down 0.73 per cent.

"Nifty has repeatedly run into resistance in the 15862-15899 band over the past 6 sessions.However the lower shadows (area between the lows and close) are growing over the past three weeks, suggesting sharp recovery post higher selling pressure," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"How long such recoveries will continue is a moot point. Nifty could remain in the 15578-15899 band in the coming week."

The monetary policy review is slated for August 4-6.

Furthermore, companies like HDFC, PNB, Airtel, Adani Enterprises, HPCL, SBI, Titan, Shipping Corporation of India, and Dabur are expected to announce their Q1 earning results next week.

According to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services: "In the week ahead, markets will take support from ongoing corporate earnings season, upcoming RBI's MPC meeting, Auto sales numbers, and slew of macro data."

"Overall, the result season so far has been healthy and is providing g support to the market. This has helped the market to largely sail through the headwinds of a possible third Covid wave, commodity led inflation and volatility around the US Fed taper talk. While the Index may be trading in a tight range, the gradual opening up of the economy and an improved demand backdrop do offer bottom-up opportunities."

Furthermore, investors will look out for the PMI manufacturing and services' figures, along with monthly automobile sales data will be released during the week.

"To give a view on economic recovery, the market awaits the release of Manufacturing and Service PMI data," Geojit Financial Services Research Head Vinod Nair.

In addition, Joseph Thomas, Head Of Research, Emkay Wealth Management said: "The relatively more important factor to reckon with would be the Chinese ban on exports of certain commodities by Chinese firms including fertilisers may push up the cost of these products for the rest of the world, and may have consequences for trade and commerce in the near term."

"Some of these factors may continue to dominate the discussions in the coming weeks too, as the markets reopen for business next week."

(Rohit Vaid can be contacted at rohit.v@ians.in)