Stock Market Prediction Next Week (1- 5 August 2022)
Stock Market Prediction Next Week (1- 5 August 2022): Indian stock markets gained for the second consecutive week ended 29 July. The benchmark indices, Sensex and Nifty advanced over 2.5 percent each on a weekly basis. The market sentiments were upbeat due to strong cues from Wall Street, reduce in FIIs selling pressure, and optimistic quarterly earnings.
In the coming week, on the domestic front, all eyes will be on RBI monetary policy outcome, which is due on 5 August. On the global front, Quarterly earnings, US unemployment, and BoE interest rate decisions will remain focused during the week. The other key factors that are likely to impact the stock market prediction next week are given below
Stock Market Prediction Next Week (1 – 5 August 2022)
Stock Nifty & Bank Nifty weekly range prediction
Technically, the Nifty spot price could trade in the range of 17600 to 16900 during the week. You can buy near low and sell at high. The current Nifty trend for Monday is positive.
Bank Nifty spot price trading range for the week is 38800 to 36400. You can buy near low and sell on the higher side. The current trend in Bank Nifty is positive.
You can also follow our daily Nifty and Bank Nifty futures, trends, trading strategies, and market updates on our Website or Telegram Channel – https://t.me/nifty50stocks1
Q1 FY23 Earnings-
It was a busy week for the investors as many Nifty 50 companies announced their quarterly earnings. Among the few big names, Axis Bank and L&T reported increases in profit but missed estimates whereas Tata Steel and Asian Paints reported earnings beating estimates. Bajaj Finance’s profit jumped 159% and was above estimates
There were 31 Nifty50 companies that have announced their quarterly earnings so far. In the coming week, 5 more Nifty50 companies will declare their earnings. ITC will announce its Q1FY23 earnings on Monday, the stock is already trading at over 3 yrs high as FPIs continuously increases their stake. The company results are expected to beat street estimates.
RBI Monetary Policy
The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) will meet next week on 3-5 August. So far, RBI has raised the repo rate by 90 basis points in two tranches since May 2022 to 4.9%. The street is expecting the Central Bank to raise the repo rate between 25-50 basis points. Anything above 50 basis points markets will react negatively and vice versa. Investors should closely watch out for the RBI governor’s commentary, to know the policy stance, inflation forecast, and growth projection as this will set the market direction.
Domestic macroeconomic data
Below are the domestic macroeconomic data that are going to influence the markets in the coming week.
| Economic Data Next Week | |
| 01-August- 2022 | S&P Global PMI Manufacturing data July |
| 02-August- 2022 | Balance of Trade Exp/Imp July |
| 03-August- 2022 | S&P Global Service PMI July |
| 05-August- 2022 | RBI Interest Rate Decision |
| 05-August- 2022 | Foreign Exchange Reserve |
Auto Sales
The auto sales graph is expected to see an upward direction in July. This is due to robust demand in July across all segments except for the tractor segment. The tractor segment is likely to decline in July due to a high base and uneven spread of the monsoon, particularly in the agricultural states like UP, Bihar, WestBengal, and Jharkhand.
Global Stock Market Prediction Next Week
The global stock markets were closed mixed during the week ended 29 July. The US and European markets advanced while Japan and China closed in the red. The much-awaited US Fed interest rate hike was in line with market expectation, earnings came strong in the US but the GDP contracted for the second quarter in the US. The European market’s gains are due to better-than-expected GDP data for the second quarter and upbeat earnings. You can read last week’s global market updates here.
In the coming week markets will focus on PMI data, Quarterly earnings, Bank of England interest rate decision, and US unemployment data. The other macroeconomic data that are likely to impact the global stock markets are given below.
| Important Global Macro Data Next Week | ||
| 1 August 2022 | Jibun Bank Manufacturing PMI July | Japan |
| 1 August 2022 | Caixin Manufacturing PMI July | China |
| 1 August 2022 | S&P Global/CIPS Manufacturing PMI data July | GB |
| 1 August 2022 | S&P Global/ISM Manufacturing PMI July | US |
| 3-August -2022 | Jibun Bank Services PMI July | Japan |
| 3-August -2022 | Caixin Services PMI July | China |
| 3-August -2022 | S&P Global/CIPS Services PMI data July | GB |
| 3-August -2022 | S&P Global/ISM Services PMI July | US |
| 4-August -2022 | BoE Interest rate decision | GB |
| 4-August -2022 | Initial jobless claim | US |
| 4-August -2022 | Export and Import data | US |
| 5-August -2022 | Unemployment rate July | US |
FII & DIIs flow
Last week, FIIs sold in the equity cash segment in the initial three days but turned into buyers in the last two days of the week. The Foreign Institutional Investors (FIIs) were the net sellers in the equity cash segment last week, they sold Rs 145.87 crore. The Domestic Institutional Investors (DIIs) were net buyers, they bought Rs 2238.51 crore for the week ended 29 July.
On a monthly basis, 8 out of 21 trading sessions, FIIs were net buyers in the Indian equity cash segments. They have sold only Rs 6567.71 crores in the month of July, the lowest since October 2021 whereas DIIs have bought more than 10500 crores in July. The decline in FIIs selling pressure was one of the main reasons that Indian markets gained nearly 9 percent in July. The current trend looks FIIs buying would continue and it would boost the market sentiments in the coming week too.
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