Stock Market Prediction Next Week (12- 16 Sept 2022)
Stock Market Prediction Next Week (12- 16 Sept 2022): Indian stock markets bounced back after losing two straight weeks. The benchmark indices, Sensex and Nifty gained 1.68 percent each for the week ended 9 September. The positive services PMI data in August, a slide in oil prices, sustained buying by FIIs and strong global cues have supported the domestic markets last week.
In the coming week, the Inflation rate for the month of August will remain focused on both domestic as well as global markets. Other than inflation, markets will closely monitor Industrial production, the balance of trade, WPI numbers, and global cues for the market direction. The other key factors that are likely to impact the stock market prediction net week are as follows.
Stock Market Prediction Next Week (12-16 Sept 2022)
Indian Stock Market Index Nifty & Bank Nifty weekly prediction
Nifty has witnessed a decent pullback during the week and almost carried on the momentum to 18000 levels. Though it faced resistance near the 17950 zone, the trend remains strong and intact. Technically, the Nifty spot price could trade in the range of 18200 to 17400 during the week. You can buy near low and sell at high. The current trend of Nifty for Monday is positive.
Bank Nifty also indicated a breakout above the previous peak level of 39760 with a strong bias indicated and expected to touch the next target zone of 41500 levels. On the spot price, it could trade in the range of 41500 to 39100. You can buy near low and sell on the higher side. The current trend in Bank Nifty for Monday 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
Domestic Economic Data
India’s retail inflation number for the month of August is due on Monday. According to the Reuters poll, the country’s inflation is likely to snap a three-month downtrend in August as food prices have surged. The poll has shown that despite the government’s export restrictions, the CPI is likely to rose by 6.9% in August compared with 6.7% in the last month.
The country’s IIP data which is expected on Monday is likely to have slowed to a four-month low of 4.1% in July from 12.3% reported in June according to the informist poll of 17 economists. This is mainly due to a favorable base effect that had kept the previous two months’ IIP growth in double-digits.
Indian markets may react negatively if inflation surges compared to the previous month in the coming week. The other key domestic macro-economic data for the next week are given below
| Economic Data Next Week | |
| 12 Sept 2022 | CPI Inflation data August |
| 12 Sept 2022 | Industrial Production July |
| 14 Sept 2022 | WPI inflation August |
| 15 Sept 2022 | Export/Import- Balance of trade |
| 16 Sept 2022 | Foreign Exchange Reserve |
Global Stock Market Prediction Next Week
The global stock market indexes closed on a strong note last week as investors shrugged off concerns about inflation and interest rate hikes and bet on beaten-down stocks. Tech-related stocks mostly bounced back worldwide in the last week. The assurance from several European countries including the UK and Germany pledged large-scale support to cope with energy costs upbeat the market sentiments. The decline in consumer and factory gate inflation in China and stimulus hope also supported the global markets at the end of the week.
In the coming week, the US and UK inflation data will remain focused and set the market direction. According to the last week’s “Beige Book” report, the price increases are coming down in the US due to lower fuel, commodity prices, and cooling overall demand. Investors are expecting a drop in the August inflation rate by around 8%. This could cheer the market, but could be a temporary one as Fed may not stop increasing another 75 bps in the September 21 meeting.
The other key macroeconomic data that are likely to impact the global stock market prediction are given below
Important Global Macro Data Next Week
| Important Global Macro Data Next Week | ||
| 12 Sept 2022 | GDP MoM July | GB |
| 12 Sept 2022 | Industrial Production | GB |
| 12 Sept 2022 | Balance of trade | GB |
| 12 Sept 2022 | PPI MoM Aug | Japan |
| 13 Sept 2022 | Unemployment Rate July | GB |
| 13 Sept 2022 | Inflation Rate -Aug | US |
| 14 Sept 2022 | Industrial Production MoM July | Japan |
| 14 Sept 2022 | Inflation Rate -Aug | GB |
| 14 Sept 2022 | PPI MoM Aug | GB |
| 14 Sept 2022 | Industrial Production July | EU |
| 14 Sept 2022 | PPI August | US |
| 15 Sept 2022 | Balance of trade | Japan |
| 15 Sept 2022 | Balance of Trade Jul | EA |
| 15 Sept 2022 | Wage Cost and Labour cost Q2 | EA |
| 15 Sept 2022 | Retail Sales-Aug | US |
| 15 Sept 2022 | Initial Jobless claim | US |
| 15 Sept 2022 | Exp/Imp Prices | US |
| 15 Sept 2022 | Industrial Production | US |
| 16 Sept 2022 | Industrial Production- Aug | China |
| 16 Sept 2022 | Retail Sales-Aug | China |
| 16 Sept 2022 | Unemployment rate Aug | China |
| 16 Sept 2022 | Michigan Consumer SentimentsSept Prel | US |
| 16 Sept 2022 | Michigan Inflation expectation prel Sept | US |
Crude Oil Prices
On Friday the crude oil prices rose around 4%, as OPEC+ decided on a small cut in supply announced last week to support prices. The crude oil futures prices on a weekly basis declined marginally, Brent crude was down by around 0.2 percent while WTI declined just 0.1 percent. The decline in crude oil prices was due to the global economic slowdown and on-demand outlook.
The oil prices boosted on Friday after US President Biden admitted that we could see a major oil spike in December. This is mainly because the EU ban on Russian oil supplies could cause a major oil price spike. Global energy advisory services also warned that oil demand could jump as large economies are going to push for a gas-to-oil switch. So investors should remain cautious, as we may see volatility in the crude oil prices in the coming week.
FII & DIIs flow
Last week, the Foreign Institutional Investors (FIIs) were the net buyers in the equity cash segment, they bought Rs 6136.66 crore. The Domestic Institutional Investors (DIIs) were net sellers, they sold Rs 352.1 crore for the week ended 9 Sept.
FIIs started full-fledged buying in August 2022, they bought Rs 51000 crore worth of equity shares as per the NSDL data in August, mainly into banks, financials, and healthcare sectors. IT stocks have been under pressure due to demand slowdown and margin impact-related worries, were also on their buy list in August after selling in July. We feel FII’s buying spree will continue in the coming week too and can see more up-move in FII’s all-time favorite Banking and Financials space.
Conclusion:
Indian stock markets are likely to remain positive on Monday due to strong global cues. The inflation numbers and global cues will drive the markets thereafter.
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You may also like to read, Nifty and Bank Nifty Prediction for Monday 12 Sept 2022
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