Stock Market Prediction Next Week (19- 23 Sept 2022)
Stock Market Prediction Next Week (19- 23 Sept 2022): On Friday, a sharp selloff in the Indian equity markets wiped out all weekly gains. Last week, the markets sentiments got hit after the release of hotter-than-expected inflation data in the US on Tuesday. Other than weak global cues, the factors like FIIs outflow, weak IIP, and elevated CPI inflation data have also somewhat impacted the markets last week.
The coming week will be a crucial one as several global central banks including Fed and BoE will announce their interest rate decision. The other key factors that are likely to impact the stock market in the next week are given below.
Stock Market Prediction Next Week (19-23 Sept 2022)
Indian Stock Market Index Nifty & Bank Nifty weekly prediction
The continuous selling pressure in the markets turned down the weekly trend of the Nifty, turning the overall bias a little bit cautious and sentiments have become weak. Technically, the Nifty spot price could trade in the range of 17900 to 17200 during the week. You can buy near low and sell at high. The current trend of Nifty for Monday is negative
Bank Nifty also erased some weekly gains and slipped below 41000 with profit booking witnessed but managed to maintain its weekly trend as few frontline banking stocks still looking in a positive bias zone. On the spot price, it could trade in the range of 41900 to 39700. You can buy near low and sell on the higher side. The current trend in Bank Nifty for Monday is Negative.
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
Global Stock Market Prediction Next Week
Global cues will be crucial next week and are likely to set the market direction. The major central banks including Federal Reserve, and BoE will be announcing their interest rate decision and will drive the markets next week. Traders will also closely monitor Japan’s inflation rate, consumer confidence, and manufacturing activity so far in the month of September. The other global key macroeconomic data for the next week are given below
| Important Global Macro Data Next Week | ||
| 19 Sept 2022 | Inflation/Core Inflation rate Aug | Japan |
| 20 Sept 2022 | Loan Prime rate 1 yr and 5 Yrs | China |
| 20 Sept 2022 | Housing Starts Aug | US |
| 20 Sept 2022 | ECB President Lagarde’s Speech | EA |
| 21 Sept 2022 | ECB Non-Monetary Policy Meeting | EA |
| 21 Sept 2022 | Fed Interest Rate Decision | US |
| 22 Sept 2022 | BoJ Interest Rate Decision | Japan |
| 22 Sept 2022 | BoE Interest Rate Decision | GB |
| 22 Sept 2022 | Current Account Q2 | US |
| 22 Sept 2022 | Initial Jobless Claim | US |
| 22 Sept 2022 | Gfk Consumer Confidence Sept | GB |
| 22 Sept 2022 | Interest rate decision | HK |
| 23 Sept 2022 | S&P Global Manufacturing PMI Flash Sept | EA |
| 23 Sept 2022 | S&P Global/CIPS Manufacturing PMI Flash Sept | GB |
| 23 Sept 2022 | S&P Global Manufacturing PMI Flash Sept | US |
| 23 Sept 2022 | Fed Chair Powell’s Speech | US |
Interest Rate Decision by Fed and other Central Banks
In the coming week, the Federal Open Market Committee (FOMC) will announce its monetary policy decision on 21 September. The outcome of the meeting will be vital as it includes the projections of the US economy for the upcoming months. Traders are expecting a sharp, 75 bps rate hike from Fed, especially after the hotter-than-expected inflation data released last week.
Traders are also fearing that BoE might deliver an interest rate hike of 50 bps at its next meeting. Other than these two central banks, BoJ, Hong Kong Central bank, and China Loan Prime rates for 1 & 5 years will be in focus.
Indian Rupee Movements against US dollar
Last week, the Indian rupee declined due to strong demand for the US dollar from oil companies. For the week, the rupee declined 0.2%, its biggest loss since the week ended Aug 12. The rupee snapped a four-day winning streak on Wednesday after hotter-than-expected U.S. consumer inflation data earlier this week strengthen the bets of a third large rate hike by the Fed next week.
The rupee is under pressure, as a 75 basis point rate hike by the Fed seems most likely and the central bank is expected to give hawkish signals at its policy meeting. Traders will be closely watching out for the Indian rupee movements in the coming week, as further depreciation in the Indian rupee against the dollar would be negative for the markets.
Crude Oil Prices
The crude oil prices declined nearly 2 percent during the week on fears that aggressive interest rate hikes will curb global economic growth and demand for fuel. Both benchmarks, WTI and Brent were down on the week, hurt partially by the US dollar’s strong run, which makes oil more expensive for buyers using other currencies.
Oil prices are likely to continue their volatile trade in the coming week as the oil markets are fluctuating between worry about a global recession and a tight supply situation due to the Russia-Ukraine war and resulting sanctions on its energy products.
FII & DIIs flow
Last week, both the Foreign Institutional Investors (FIIs) and the Domestic Institutional Investors (DIIs) were net sellers in the Indian equity markets. FIIs sold Rs 1921.61 crore worth of shares while DII sold Rs 2936.79 crore during the week ended 16 September.
Nifty breached the 18,000 mark after almost after five months as the strong FIIs inflow continued to drive the markets in the month of August. Last week FIIs turned sellers mainly after the release of US inflation data and ahead of the FOMC meeting, which is a concern for the domestic market. FIIs may continue their selling spree in the coming week too. Traders need to closely watch out for the FIIs flow as this is would be one of the most important factors to drive the market next week.
Conclusion:
Indian stock markets are likely to remain highly volatile in the coming week mainly due to the FOMC meeting. Traders have already factored in the 75 bps rate hike from the Fed, anything above this could further hit the market sentiments.
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