Indian share market outlook for next week (12-16 October )
The key factors that may drive the Indian share market next week
Indian share market gained more than 4 percent on the week ending 9 October. The market gained on global support, stimulus hopes in India and the US, and second-quarter earnings. The markets gained continuously for the seven trading sessions in a row. You can read the 9 October weekly market report here.
The key factors that may drive the Indian share market next week are given below:
Earnings
TCS Q2 earnings announced last week created positive sentiments in the market. In the coming week, the large-cap IT companies like Wipro, Infosys, and HCL Tech will announce their Q2 earnings. The better than expected earnings can impact the Indian share market positively. The schedule for Q2 earnings for Nifty50 stocks is given below.
| Q2 Results dates for Nifty50 Stocks | |
| 12th Oct | Wipro |
| 14th Oct | Infosys |
| 16th Oct | HCL Tech |
Global market cues
Without global market support, it would not be an easy task for the domestic market to gain on a weekly basis. At this point in time US political uncertainties, rise in coronavirus cases in European countries, and Brexit talks are an important issue that can create volatility in the domestic market next week.
On the other hand, global macroeconomic data, quarterly earning can also drive the global market. Any positive outcome of these two events can create positive sentiments in the global markets in the next week. So traders need to follow the global market cues or can also follow our daily morning market reports for global market updates.
| Important Global Macro Data Next Week | ||
| 13th Oct | Export & Import data | China |
| Unemployment rate | GB | |
| Core Inflation | US | |
| 14th Oct | Industrial Production | Japan |
| 15th Oct | Inflation rate | China |
| Jobless claim | US | |
| 16th Oct | Industrial Production | US |
Domestic Macro data
The domestic macroeconomic data can increase the market volatility next week especially on Monday. The schedule of macroeconomic data to be announced next week is given below
| Macro Data Next Week | |
| 12th Oct | Industrial production AUG |
| CPI inflation SEPT | |
| 14th Oct | WPI Inflation |
| 15th Oct | Balance of Trade |
| Export & Import | |
| 16th Oct | Foreign Exchange Reserve |
FIIs and DIIs investment in Indian share market
On a monthly basis, FIIs are buyers so far, they bought Rs 5003.1 crores in the month of October in the cash segment. DIIs sold Rs 2129.97 crore in the cash segment in the current month.
Normally it has been observed in the last few months that after 5 to 7 days of trading FIIs change their trend. In the month of October FIIs bought five trading days and sold on Friday, if the trend continues then we may see some selling pressure by the FIIs next week. Traders should remain cautious and watch closely the FIIs movement in the Indian share market.
Supreme Court’s Verdict on compound interest
The Supreme Court’s verdict on interest on interest is very crucial for the market especially the Bank Nifty. It is scheduled for Tuesday 13th October. Finance Ministry has already clarified on 2nd October to waive only interest on interest up to loan amount of Rs 2 cr for the six months moratorium period for individual and MSME borrower.
It was also clarified by the government that the interest cost will be bear by the government and the pressure will not come to the banks. As per the Finance Ministry, the scheme for implementation of the decision will be put in place by November 15. The Bank Nifty has gained last week on this news and is expected to trade positively after the Supreme Court’s verdict.
Coronavirus updates
Indian recorded a single-day rise of 74383 new coronavirus cases and 918 fatalities in 24hrs. In the month of September mid, the total number of new cases were recorded 98K. The good part is daily new cases have been declined, the recovery rate jumped to 85.8 from 80, and the fatality rate also improved from 1.56 to 1.53-54.
There is an improvement in overall coronavirus infection in India even after unlocking 5.0. The experts are now concern about the second wave of coronavirus after the festive season in winter like in European countries. So one should continue to maintain social distancing, wearing masks, and maintain the immune system.
On the vaccine front, people are eagerly waiting for the vaccine which is expected in the early next year 2021. Traders should follow the vaccine-related news and its progress.
Nifty and Bank Nifty futures prediction for next week (12-16 Oct)
Nifty futures prediction for next week
Primary Trend of Nifty futures next week: Positive
Range-Bound Trend of Nifty futures: All up Moves Initiates Profit Booking (Sale) @ 12130 whereas All Down Moves Initiates Short Covering (Buy) @ 11905
If Nifty share price in futures Moves Above 11970 and sustain. Then you should Buy with 1st Target of 11994 during the day or week with a Stop Loss of 11904 FOR the Target of 11994- 12018- 12040- 12130
Suppose Nifty share price in futures Moves Below 11904 and sustain. Then you should Sell with 1st Target of 11880 during the day or week with a Stop Loss of 11970. FOR the Target of 11880- 11858- 11816-11770
Bank Nifty futures prediction for next week
Primary Trend of Bank Nifty future for next week: Positive
Range-Bound Trend of Bank Nifty share price in future: All up Moves Initiates Profit Booking (Sale) @ 24600, whereas All Down Moves Initiates Short Covering (Buy) @ 23550
Bank Nifty share price in the future Moves Above 24050 and sustain. Then you should Buy with the 1st Target of 24220 during the day with a Stop Loss of 23550. FOR the Target of 24220 – 24315- 24550- 24650
If Bank Nifty shares price in the future Moves Below 23550 and sustained. Then you should Sell with the 1st Target of 23350 during the day with a Stop Loss of 24050. FOR the Target of 23350 – 23150- 23050 – 22950
Conclusions
The Indian share market has rallied continuously for seven trading sessions in a row. Though the market is looking positive, traders need to be extra cautious now. Nifty may take a pause and we may see a consolidation phase. Traders can also follow our daily Nifty and Bank Nifty futures predictions.
You may also like to read, Infosys and Maruti share price target for next week
Happy Investing!!
Editor’s Desk
Disclaimer-
Nifty50Stocks.com has taken due care and caution to compile the data for its Website. The views and investment tips expressed by investment experts on Nifty50Stocks.com are their own and only for educational purposes. Nifty50Stocks.com is not SEBI registered Advisors and advises its users to check with certified and SEBI registered experts before taking any investment decision. However, Nifty50Stocks.com does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or the results obtained from the use of such information. Nifty50Stocks.com especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.
