Stock Market Prediction Next Week (12-16 Dec 2022)
Stock Market Prediction Next Week (12-16 Dec 2022): Indian equity markets snapped a two-week winning streak and declined over 1% during the week ended 9 Dec. The market sentiments were negative, as RBI slashed the GDP growth rate in its December policy meeting. The FIIs outflow and negative cues from global markets also hit the market sentiments last week. However, the downside was limited due to falling crude oil prices and improved PMI Services data for the month of November.
In the coming week, global cues will set the domestic market direction. The FOMC meeting, BoE interest rate decision, and Inflation data in India, the US, and Europe will remain focused in the coming week. The other key factors that are likely to impact the stock market prediction next week are given below
Stock Market Prediction Next Week (12- 16 Dec 2022)
Nifty & Bank Nifty weekly prediction
Nifty after sliding gradually for the past few days, witnessed heavy profit booking on Friday with a bearish engulfing candle formation on the daily chart. It suggests some weakness ahead. The 18200 zone will be the crucial support zone for Nifty from here on. In the coming week, Nifty could trade in the rage of 18800-18200 levels.
Bank Nifty managed to close above the 43500 zone on Friday. It made a decent recovery after the initial heavy profit booking seen at the new high levels. It has made the bias a little bit cautious with the near-term major support zone laying near the 42700 zone as of now. The Bank Nifty could trade in a range of 45000 to 42600 levels.
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
Macroeconomic data
Next week, India’s retail inflation and IIP data will release on Monday after market hours. The market is expecting a further cool-down in retail inflation numbers in November. As per the recent Reuters poll, India’s CPI-based inflation likely cooled to a nine-month low of 6.40% in November due to a moderation in food and vegetable prices. The cool-down in retail inflation as per expectation will be positive for the market.
Another data that is going to release on Monday is the Index of Industrial Production (IIP). The market experts are expecting a contraction in October’s IIP data, as the Core Sector’s data release on 30th November showed that the core sector growth slowed to 20 month low of 0.1 percent in October. As the Core industries account for 40 percent of the IIP, economists and market experts indicate a contraction in IIP numbers. The other domestic economi data that are expected during the week are given below.
| Economic Data Next Week | |
| 12 December 2022 | Inflation Nov |
| 12 December 2022 | Industrial Production |
| 14-December-2022 | WPI Inflation |
| 15 December 2022 | Balance of trade Exp/ Imp Nov |
| 16 December 2022 | Bank Deposit & Loan Growth |
| 16 December 2022 | Foreign Exchange Reserve |
Federal Reserve Interest Rate Decision
The Federal Reserve meeting outcome on 14 December would be crucial and set the domestic market direction ahead. Last week’s strong US economic data almost shattered investors’ hope for a slowdown in Fed interest rate hikes. The market experts also feel that the Federal Reserve is set to disappoint the equity markets, as it will keep rates at their peak throughout 2023.
According to the Bloomberg survey, the Fed policymakers will raise rates by 50 basis points at the next week’s meeting, following four consecutive 75 basis-point hikes, and by quarter points at the following two meetings. The Fed’s commentary on inflation would be crucial or any clue on slow down in rate hikes can cheer the markets
Global Stock Market Prediction Next Week
Last week the US and European markets closed lower as investors were cautious about aggressive interest rate hikes by the central banks and fear of recession. The strong economic data release in the US shattered hopes of slowing down interest rate hikes. European markets fell last week due to renewed fear of recession. China gained on the hope of possible economic growth after the relaxation of Covid restrictions. The better-than-expected economic data in Japan lifted the markets last week.
In the coming week, the global stock markets will remain highly volatile as the FOMC meeting outcome is expected on Wednesday followed by BOE and Eurozone interest rate decisions. The market will closely monitor the US inflation data ahead of the Fed meeting outcome on Tuesday. Below are some crucial events that are likely to impact the stock market prediction next week.
Global Macroeconomic Data
| Important Global Macro Data Next Week | ||
| 12 December 2022 | PPI Nov | Japan |
| 12 December 2022 | GDP MoM Oct | BG |
| 12 December 2022 | Industrial Production | BG |
| 12 December 2022 | Balance of Trade Exp/Imp | BG |
| 12 December 2022 | Consumer inflation expectation Nov | US |
| 13 December 2022 | Unemployment Rate | GB |
| 13 December 2022 | ZEW Economic Sentiments Dec | EA |
| 13 December 2022 | Inflation rate | US |
| 14 December 2022 | Thankan Manufacturing Index | Japan |
| 14 December 2022 | Industrial Production OCT | Japan |
| 14 December 2022 | Inflation rate Nov | GB |
| 14 December 2022 | Retail Price Index | GB |
| 14 December 2022 | Industrial Production OCT | EA |
| 14 December 2022 | Export/ Import | US |
| 14 December 2022 | Fed Interest Rate Decision | US |
| 15 December 2022 | Balance of Trade Exp/Imp | Japan |
| 15 December 2022 | House Price Index Nov | China |
| 15 December 2022 | Industrial Production Nov | China |
| 15 December 2022 | Retail sales Nov | China |
| 15 December 2022 | Unemployment rate | China |
| 15 December 2022 | BoE Interest Rate Decision | GB |
| 15 December 2022 | ECB Interest rate decision | EU |
| 15 December 2022 | Industrial Production Nov | US |
| 15 December 2022 | Retail Sales Nov | US |
| 16 December 2022 | GFk consumer confidence Dec | GB |
| 16 December 2022 | Jibun Bank PMI flash Dec | Japan |
| 16 December 2022 | Retail Sales Nov | GB |
| 16 December 2022 | S&P Global/CIPS PMI flash Dec | GB |
| 16 December 2022 | S&P Global PMI fash Dec | US |
| 16 December 2022 | Inflation rate Nov | EA |
Crude Oil Prices
The crude oil prices traded volatile last Friday and both benchmarks recorded their biggest weekly declines in months. The fall in crude prices is due to growing recession fears and lower demand from China. The WTI crude oil futures fell 10.96 percent while Brent Crude futures were down by about 11 percent during the week.
On Friday, market experts said that an outage on the largest oil pipeline to the United States from Canada could affect inventories at a key US storage hub and cut crude supplies to two oil refining centers. This could impact the crude oil prices depending on the period of the outage. Traders should closely monitor the crude oil prices next week, as the price may see an upward direction.
FII & DIIs flow
Foreign Institutional Investors (FIIs) were turned into the net sellers in the Indian equity markets during the week. Foreign investors have offloaded Rs 4305.97 crore worth of shares while Domestic Institutional Investors (DIIs) were net buyers and they bought Rs 3712.08 crore in the cash segment for the week that ended on 9 December.
If FIIs continue their selling spree in the Indian equity markets, then we may see a further correction in the market and vice versa. Investors should closely monitor the FIIs activity in the coming to know the market direction.
Conclusion:
Indian stock markets will remain volatile in the coming week, as there are several crucial events and economic data lined up. Markets are likely to open lower on Monday and would trade cautiously ahead of the inflation and IIP data. The domestic markets will trade as per the global cues for the rest of the days during the week.
If you like the post “Stock Market Prediction Next Week (12- 16 Dec 2022)” please share it with the others.
You may also like to read, Tradingview India Review 2022- You Must Read
Best Options Trading Books in India-Must Read 2022
Happy Investing!!
Editor’s Desk
