Stock Market Prediction Next Week (22- 26 May 2023)
Stock Market Prediction Next Week (22- 26 May 2023): Indian stock markets closed lower for the week that ended on 19 May. The market witnessed a healthy correction at higher levels due to global uncertainties about interest rate hikes and US debt ceiling negotiation talks. However, the downside was limited due to persistent FIIs inflow, healthy corporate earnings, and strong domestic economic indicators.
In the coming week, trading could be volatile as traders will roll over F&O positions from the near month to the June series. The US debt ceiling negotiation talks have been paused late Friday, the news can create some volatility in the global markets. The 4th quarterly earnings will continue to remain focused during the week. The other key factors that are likely to impact the stock market prediction are given below.
Stock Market Prediction Next Week (22- 26 May 2023)
F&O Expiry Week:-Nifty & Bank Nifty Prediction
On Friday, the Nifty index slipped in the morning session but bounced back strongly from the 18050 zone and closed on a positive note above 18200 levels. The Nifty chart is indicating a positive sign with sentiment significantly improved and anticipated for further rise.
Many of the index stocks like RIL, Infy, Kotak Bank, ICICI Bank, Axis Bank, Tata Motors, and M&M have shown prominent reversal of the bias to expect a further upward move in the coming days. On a weekly basis, the Nifty has support at 17900 levels while the resistance is seen at 18600 levels.
Bank Nifty also witnessed a decent reversal from the 43500 zone on Friday and has closed with a positive bias and indicating a further upward move. A decisive breach above the 44200 zone would trigger a fresh breakout in the Bank Nifty can carry the momentum for the targets of 45900-46000 levels. On a weekly basis, Bank Nifty would trade in the range of 43000-45300 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
Q4 Earnings
As we are in the last leg of the Q4 earnings season, and most of the Nifty companies have already announced their March end quarterly results. There are a total of 200 plus corporates including six Nifty companies that will be announcing their Q4 earnings in the coming week. So far the corporates have reported their quarterly earnings in line with the expectations.
Other than tech companies, strong earnings have been posted by the banking, financial, and automobile sectors. The oil & gas sector has reported the quarterly results above estimates. Below are the six Nifty companies that will announce their quarterly earnings next week, which can have a large impact on the domestic markets.
| Q4FY23 Result dates for Nifty50 Stocks | |
| 22 May 2023 | BPCL |
| 24 May 2023 | Hindalco |
| 26 May 2023 | Grasim |
| 26 May 2023 | M&M |
| 26 May 2023 | ONGC |
| 26 May 2023 | Sun Pharma |
Global Stock Market Prediction Next Week
The global stock markets mostly closed higher during the week that ended on 19 May. The market sentiments remain upbeat due to the progress of the negotiation talks of the US debt ceiling and quarterly earnings. Traders were also busy analyzing mixed economic data released during the week. Japan’s stock market indexes reached near 33-year highs during the week due to solid earnings, yen weakness, and FIIs buying.
On Friday the US market fell as the Republican negotiators announced to pause the negotiation on US debt ceiling talks. The other global markets are likely to react negatively on Monday.
The US markets continue to focus on the quarterly earnings as more retailers and Zoom video, TD Bank, and Nvidia will announce their quarterly results next week. FOMC minutes, US GDP 2nd estimates, China’s 1 &5 year Loan Prime Rate, UK’s inflation, and retail sales will remain a focus. The other macroeconomic data that are likely to impact the global stock market prediction are given below.
Global Macroeconomic Data
| Important Global Macro Data Next Week | ||
| 22 May 2023 | Loan Prime Rate 1yr & 5 Yrs | China |
| 23 May 2023 | Jibun Bank PMI flash May | Japan |
| 23 May 2023 | HCOB PMI Flash May | EA |
| 23 May 2023 | Current Account Mar | EA |
| 23 May 2023 | S&P Global/ CIPS PMI Flash | GB |
| 23 May 2023 | S&P Global PMI Flash May | US |
| 23 May 2023 | New Home Sales APR | US |
| 24 May 2023 | Inflation, Retail, Core, PPI | GB |
| 24 May 2023 | FOMC Minutes | US |
| 25 May 2023 | Weekly Jobless claim | US |
| 25 May 2023 | GDP Growth Q1, 2nd estimates | US |
| 25 May 2023 | PCE Price QoQ 2nd estimate | US |
| 25 May 2023 | Pending Home Sales April | US |
| 26 May 2023 | Tokyo CPI, Core May | Japan |
| 26 May 2023 | Retail Sales | GB |
| 26 May 2023 | Durable Goods Order Apr | US |
| 26 May 2023 | Personal Income/ Spending Apr | US |
| 26 May 2023 | PCE price Index Apr | US |
| 26 May 2023 | Michigan consumer sentiments May | US |
| 26 May 2023 | Michigan inflation expectation May | US |
Crude Oil Prices
The crude oil prices snapped a three-week losing streak and closed 2 percent higher during the week. In the previous week, both oil benchmarks, WTI and Brent fell 1.5 percent respectively. On Friday, both WTI and Brent had earlier rallied by more than $1 on optimism that the debt ceiling talks were making progress. Later the Crude prices reversed early gains to end lower as talks to raise the U.S. debt ceiling halted
On Friday, WTI crude settled lower by 31 cents, or 0.5%, at $71.55 per barrel, on a weekly basis WTI was up about 2%. The U.S. crude benchmark fell a cumulative 15% over four prior weeks. The Brent crude oil settled 28 cents lower on Friday, or 0.4%, at $75.58. The London-traded Brent was also up 2% during the week and fell a cumulative 14%.over four prior weeks. The steady oil price is supporting the Indian economy and is favorable for the domestic stock market.
FII & DIIs flow
Foreign investors continued their buying spree in the Indian equity markets. FIIs have bought four out of five trading sessions during the week, except for the last session. They were the net buyers and they bought shares worth Rs 4098.2 crore during the week. The Domestic Institutional Investors (DII) were the net seller and they offloaded Rs 677.45 crore worth of shares for the week.
As Chinses economy is not picking up, for FIIs investing in India is a better option. We feel FIIs will continue to invest in Indian markets but the concern is DIIs, as they have started selling, which is not good for the market. Traders should keep track of FIIs and DIIs actively closely in the next week to gauge the market direction.
Conclusion:
The domestic markets are expected to remain volatile in the coming week, due to the monthly F&O expiry on Thursday. The global markets are also expected to remain volatile, as US debt limit talks halted late Friday. The quarterly earnings and economic data will also remain focused in the coming week and are likely to set the market direction next week. You can also follow our Daily Morning Report at 7.30 am to know the market direction.
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You may also like to read, Global Stock Market – Weekly News and Analysis Report
Nifty and Bank Nifty Prediction for Monday 22 May 2023
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