Stock Market Prediction Next Week (20 – 24 June 2022)
Stock Market Prediction Next Week (20 – 24 June 2022): The Indian equity markets fell more than 5 percent during the week ended 17 June. The market sentiments were dented due to weak global cues, FIIs outflow, and a record high WPI numbers. The global market sentiments were hit after the US Federal Reserve aggressively hiked the interest rate by 75 basis points and slashed the economic growth for 2022-23.
In the coming week, on the domestic front, the monsoon and rising Covid cases will remain focused whereas on the global front the US Fed Chair’s Testimony and China’s Prime Loan rate will set the market direction. The other key factors that are likely to impact the stock market prediction next week are given below.
Stock Market Prediction Next Week (20 to 24 June 2022)
Nifty & Bank Nifty trend and prediction next week
Technically, the Nifty spot price could trade in the range of 15700 to 15000 during the week. You can buy near low and sell at high. The current Nifty trend for Monday is Negative with cautious bias.
Bank Nifty spot price trading range for the week is 34000 to 31800. You can buy near low and sell on the higher side. The current trend in Bank Nifty for Monday is Negative with a cautious bias.
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
The major global market indexes fell sharply during the week due to recession fear after Fed raised the interest rates aggressively by 75 basis points. The US Federal Reserve has slashed the economic growth for 2022-23 and opened the door for more rate hikes this year to control the 40-year high inflation. The Swiss Central Bank unexpectedly hiked the interest rate last week followed by the Bank of England (BoE).
Investors are now worried about the Central Bank’s monetary policy tightening and fear of economic slowdown. In the coming week, the global market will focus on China’s prime loan rate and US Fed Chair’s Testimony and along with the below given macroeconomic data. On Monday, the US markets will remain closed due to a holiday.
| Important Global Macro Data Next Week | ||
| 20-06-2022 | Loan Prime Rate | China |
| 21-06-2022 | BoJ Monetary Policy Minutes | Japan |
| 22-06-2022 | Inflation rate May | GB |
| 22-06-2022 | Fed Chai Powell Testimony | US |
| 23-06-2022 | Jibun Bank June PMI Flash | Japan |
| 23-06-2022 | S&P Global/CIPS June PMI Flash | GB |
| 23-06-2022 | Initial Jobless Claim | US |
| 23-06-2022 | S&P Global June PMI Flash | US |
| 23-06-2022 | Fed Chai Powell Testimony | US |
| 23-06-2022 | Gfk Consumer Confidence June | GB |
| 23-06-2022 | Inflation rate May | Japan |
| 24-06-2022 | Retail Sales | GB |
| 24-06-2022 | Michigan Consumer Sentiment | US |
Crude Oil Price
After a strong performance earlier this month, a heavy selloff in the crude oil prices was witnessed in the last week. The Brent Crude August futures fell more than 7% during the week. This fall in crude oil prices is due to recession fear in the US after Fed aggressively raised the interest rate and open the door for more rate hikes this year to control inflation.
As the demand from China is increasing after the ease of covid restrictions and supply is tight due to a ban on Russian oil, the weakness in oil seen in recent days may be temporary and overdone. There could be short-term rebounds once the extreme fear of recession dissipates. The rising crude price is not good for the oil-importing country like India, and can negatively impact the equity markets.
INR against Dollar
The Indian rupee could remain volatile in the short term and as per experts, it may touch Rs 79 against a dollar. Indian Rupee at 78.31 has made an all-time low against the US dollar, currency depreciation is inflationary and reduces the purchasing power. Depreciation of Indian Indian rupee is not good for the equity markets. It may affect foreign investors pulling out of the Indian equities due to a decline in stock and mutual fund investments.
Covid-19 & Restrictions
India reported 13216 new Covid-19 cases and 23 fatalities in the last 24 hrs on 18th June Saturday. The active Covid cases now stand at 68108 according to the health ministry. For the first time in months, India reported 10K plus daily Covid cases for the second consecutive day. With the rise in new covid cases, the fear of the 4th wave looms in India.
Earlier, India lifted most of the covid-related restrictions when the average number of daily Covid cases was 3000. Now the concern is with the 10K plus daily fresh Covid cases, will the restrictions be reimposed? Covid restrictions mean economic losses, according to the experts as long as the number of hospitalization is less, no need to worry whatever be the number of cases, the restriction will not come back.
FII & DIIs flow
The Foreign Institutional Investors (FIIs) are aggressively selling in the Indian markets. FIIs sold Rs 23273.67 crore while DIIs bought Rs 17226.16 crore in the equity markets cash segment during the week ended June 17, 2022. In June, so far FIIs have sold over Rs 42K crore in the equity cash segment.
The foreign fund outflow has neared Rs 2 lakh crores in the Indian equity markets since January 2022. According to the market analyst, the FIIs selling pressure is expected to continue in the near term especially as long as inflation stays at a multi-year high and above RBI’s comfort zone. Traders should remain cautious and should closely monitor the FIIs data to know the market direction.
Monsoon Updates
The monsoon has been slightly delayed, so far India has received 18% less than the normal monsoon. Although, these are early days of monsoon as the window for sowing of Kharif crops is till the end of July, according to the agricultural ministry officials. The monsoon rains revived in the last couple of days, and it is expected to progress across the country, Kharif sowing activities will also pick up in the coming days, the officials said.
India needs a good and normal monsoon this year, this will help to lift rural incomes, boost spending on consumer goods, and most importantly can reduce the record-high inflation and help to stop RBI monetary policy tightening.
If you like the post “Stock Market Prediction Next Week (20 – 24 June 2022)” please share it with the others.
You may also like to read, Stock Market Weekly Recap – Top Gainers & Losers
Nifty and Bank Nifty Prediction for Monday, 20 June 2022
Happy Investing!!
Editor’s Desk
