Indian stock market outlook for next week, Nifty and Bank Nifty prediction

 

The Indian stock market closed marginally higher last week. On a weekly basis, Nifty gained 99 points or 0.92% and at 10933.45 While Sensex was up by 326.45 points or 0.89%  and at 37020.14. Whereas The Bank Nifty fell 122.45 points or 0.56%  and closed at 21966.8.

The Nifty midcap and smallcap 100 indices closed in the mixed last week. The Nifty midcap gained 25.15 points or 0.17% and closed at 15242.3. The smallcap was down by 20.7 points or 0.43% and at 4851.95.

 

Nifty50 gainers and losers on a weekly basis

Weekly Nifty50 Gainers
Company Name	LTP	Previous Close	Change (%)
BPCL	443.80	376.35	17.92
Wipro	261.35	222.10	17.67
Infosys	903.15	781.85	15.51
Cipla	689.10	638.90	7.86
HCL Technologies	623.15	582.25	7.02
Weekly Nifty50 Losers
Company Name	LTP	Previous Close	Change (%)
Zee Entertainment	157.40	170.10	7.47
Adani Ports	313.00	334.95	6.55
Power Grid Corp	163.30	172.60	5.39
Bharti Infratel	198.10	209.05	5.24
HDFC	1805.85	1886.00	4.25

 

Nifty Midcap and Smallcap gainers and losers

Weekly Nifty Midcap 100 Gainers
Company Name	LTP	Previous Close	Change (%)
Edelweiss Fin	64.40	56.25	14.49
Ipca Labs	1806.95	1664.35	8.57
Weekly Nifty Midcap 100 Losers
Company Name	LTP	Previous Close	Change (%)
Indiabulls Vent	111.95	129.60	13.62
IDBI Bank	38.05	43.70	12.93
Weekly Nifty Smallcap 100 Gainers
Company Name	LTP	Previous Close	Change (%)
Cyient	295.15	250.30	17.92
Sterlite Tech	155.70	137.70	13..07
Weekly Nifty Smallcap 100 Losers
Company Name	LTP	Previous Close	Change (%)
Suntech Reality	165.20	197.25	16.25
Omaxe	67.70	79.80	15.16

 

Indian stock market news last week

 

The Indian stock market started with a cautious note last week with FICCIs Economic Outlook Survey that projected India’s GDP growth would be contracted by 4.5% in FY21. 

The market sentiment was also dampened after the release of CPI data at 6.09% in June and the WPI came at -1.8% in June 2020 as compared to 2.02 in June 2019.

However on the positive note, as per the Ministry of Commerce and Industry data, India has got first trade surplus in over 18 years in June 2020. India’s trade surplus stood at $790 million compared to #15.28 billion in the last year the same period. 

The global rating firm S&P Global applauded the decision of Indian banks to raise fresh capital last week. 

Investments through participatory notes (P-notes) in the domestic equity market has increased to Rs 62128 crore till June end.

 

Indian stock market outlook for next week

Q1FY1 results- 

The 1st Quarter company results have already started and we have seen some impressive results in the last week. The Q1FY21 results announced last week were

Wipro 

On 14th Wipro reported 0.11% YoY growth in net profit at Rs 2390.40 crores for the June end quarter. This is compared to a net profit of Rs 2387.60 crores in the last year the same period.

The consolidated revenue of the company increased by 1.33% YoY to Rs 14913.10 crore in Q1FY21 as compared to Rs 14716.10 crore in the same period last year. The Wipro Q1FY21 results beat the streets estimates the share price reacted positively after the announcement of the Q1 results.

Infosys

The IT and Software company Infosys reported its Q1FY21 results on 15th July. The company reported a 2% decline in net profit at Rs 4233 crore. The revenue from operations increased 1.7% sequentially to Rs 23665 crore in the June quarter and dollar revenue fell 2.4% QoN to $3121 million for the quarter.

The company has reported better than expected constant currency revenue for the quarter which fell 2% on a sequential basis. The share price of Infosys has reacted positively after the Q1FYI results.

Britannia

Britannia on 17th July reported a 118% YoY rise in net profit at Rs 542.68 crore for the June end quarter. This is as compared to Rs 248.64 crores in the last year the same period.

The consolidated revenue of the company increased to 26.67% YoY to Rs 3420.67 crore in Q1FY21. The company’s consolidated EBITDA rose to Rs 717.4 crore in June end quarter from Rs 395 crore in the same period last year. A profit booking was seen in the Britannia share price after the announcement of Q1 results.

HCL Technologies

HCL Technologies reported its Q1FY21 results on 17th July. It has posted a 31.70% YoY rise in net profit at Rs 2925 crore for the June end quarter. This is as compared with a net profit of Rs 2220 crore in the same quarter last year.

The Consolidated revenue of HCL Tech has increased 8.60% YoY to Rs 17841 crores in the June end quarter. EBITDA jumped 34.30% YoY to Rs 4566 crores in Q1FY21 as compared to Rs 3401 crores in the last year the same period. A profit booking on TCL Technologies was seen after the announcement of Q1 results on Friday.

HDFC Bank

On 18th JulyHDFC Bank reported a 19.6% YoY growth in standalone profit for the June end quarter. Profit during the Q1FY21 increased to Rs 6658.62 crore as compared to Rs 5568.16 crores in the last year the same period.

Net interest income in the quarter climbed 17.8% YoY basis to Rs 15665.42 crores. Healthy loan growth of 21% and deposits growth of 24.6% was reported by the bank in Q1FY21. Provision and contingencies for the quarter stood Rs 3891.52 crores and net NPA dropped 0.33% in June end the quarter. The HDFC Bank share will react positively on Monday 

The Q1FY21 results for next week are 

Q1 Results dates for Nifty50 Stocks
18th July	HDFC Bank
21st July	Axis Bank
21st July	Bajaj Finance
21st July	Bajaj Finserv
21st July	HUL
22nd July	Bajaj Auto
24th July	Asian Paints
24th July	ITC
24th July	JSW Steel
24th July	ZEEL

FIIs and DIIs movement

Last week both FIIs and DIIs were the seller in the cash market. FIIs sold Rs 1959.56 crores and DIIs sold Rs 1584.17 crores in the cash segment on 17th July end week.

The participation of retail clients in the market was seen in the last few months during the lockdown period. Indian market is not only dependent on Institutional investors even retail investors can also drive the market steadily.

 

News on Coronavirus 

Last week we have seen the global market reacting positively after the news of Moderna Inc successfully done testing of coronavirus vaccine and entered the final stage. The hopes of a positive and early vaccine has boosted the market sentiments last week globally.

The market has completely ignored the spike in coronavirus cases in the US, India, and other parts of the world. India has crossed 10 lakh numbers of coronavirus cases and standing in the third position in the global tally.

The spike in coronavirus cases has extended the lockdown in many places in India. This will ultimately slow down the economic recovery process in India which may affect the GDP growth.

 

Global Markets sentiments

The global market sentiments were positive last week due to hopes of early coronavirus vaccine news, the Stimulus package, Central banks rate cut, and linger of the US and China tension.

Next week the Indian market will take support from the global market in the absence of any domestic trigger. Traders should closely follow the global market cues before any position.

 

Technical Levels 

Nifty and Bank Nifty prediction for next week

 

 

Nifty prediction in Futures for next week

Primary Trend of Nifty Futures next week: Mild Positive

Range-Bound Trend of Nifty Futures: All up Moves Initiates Profit Booking (Sale) @ 11070 whereas All Down Moves Initiates Short Covering (Buy) @ 10750

If Nifty futures share price Moves Above 10950 and sustain. Then you should Buy with 1st Target of 10997 during the day or week with a Stop Loss of 10870 FOR the Target of 10997- 11028 – 11070- 11180

If Nifty futures share price Moves Below 10870 and sustain. Then you should Sell with 1st Target of 10832 during the day or week with a Stop Loss of 10950. FOR the Target of 10832-  10802- 10748-10680

 

 

Bank Nifty prediction in futures for next week

Primary Trend of Nifty Bank share price in future for next week: Mild Positive

Range-Bound Trend of Nifty Bank share price in Future: All up Moves Initiates Profit Booking (Sale) @ 22900, whereas All Down Moves Initiates Short  Covering (Buy) @ 21650

Nifty Bank share price future Moves Above 22290 and sustain. Then you should Buy with the 1st Target of 22380 during the day with a Stop Loss of  21870. FOR the Target of 22380 – 22495- 22650- 22840

If Nifty Bank share price future Moves Below 21870 and sustained. Then you should Sell with the 1st Target of 21760 during the day with a Stop Loss of 22290. FOR the Target of 21760 – 21640- 21430-21220

 

Conclusions

Indian stock market closed almost four months high on last Friday. The market is looking positive in the near term but traders should be cautious of taking fresh positions. One can continue the existing long position with strict stop loss. 

Traders are advised to follow the global market closely and can follow our Daily Stock Market live and Nifty and Bank Nifty prediction report in the live market.

 

You can also read, Coronavirus impact on various sectors & Indian economic growth                                                   

Hedging: Meaning, Risk, Strategies, and types of Hedge

 

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Editor’s Desk

 

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