Stock Market Prediction next week (3 Jan -7 Jan 2022)
Stock Market Prediction next week (3 Jan -7 Jan 2022): Indian stock market indexes gained 2 percent for the week ended 31 December. The broader markets were outshined as compared to the benchmark indices for the week. There were no major events during the week and the volumes were thin ahead of the year-end. Last week Indian markets got support from the global markets and DIIs.
In the coming week, markets will first react to the strong GST collection in December and decline in Foreign exchange reserve for the week ended 24 December. The rise in omicron in the country, global cues, PMI data, and December’s Auto sales number on Monday are likely to dominate the market next week. The other key factors that are likely to influence the stock market prediction for next week are given below.
Key factors likely to impact the stock market prediction ( 3-7 Jan 2022)
Omicron Covid Virus & Risk
The recent surges in the new covid Omicron variants cases have increased the volatility in the markets. Last week, global markets traded positively despite the hike in covid cases as traders were uncertain about its impact on the economy. In India, several states including Delhi, Maharashtra, Tamil Nadu, Karnataka have imposed Covid-related restrictions to curb the spread of the infections.
On January 1, India reported 22775 Covid cases, the highest numbers on a daily basis since October 2. Out of the total cases, 1540 infections were Omicron variant. Indian market will keep a close eye on Covid cases and fresh restrictions. Any positive development on the covid front will change the market mood, if the infections go up significantly, then the market may come under pressure and will be volatile.
Indian Macroeconomic Data
Indian markets will first react to December’s GST collection which continued to remain above 1 lakh crore for the sixth straight month. There was a decline in foreign exchange reserve for the week ended 24 December. The domestic economic data that are going to release next week are as below.
| Economic Data Next Week | |
| 3 January 2022 | Markit Manufacturing PMI |
| 3 January 2022 | Balance of Trade – Exp/Imp |
| 5 January 2022 | Markit Service PMI |
| 7 January 2022 | Foreign Exchange Reserve |
Auto Sales Number
Auto stocks will remain focused on Monday as the markets will react to the monthly sales data that were released during the weekend. The mixed sales numbers were reported by the vehicle manufacturer for the month of December.
Tata Motors reported a 24 percent YoY growth in domestic sales for December whereas the country’s largest carmaker Maruti Suzuki witnessed a 4.4 % decline in sales. The data released so far indicated that the chip shortage had a very minor impact on production and is now gradually easing.
The global stock market next week
Last week, most of the global market indexes ended higher despite the surges in Omicron variants. Traders and Investors were in a holiday mood due to the Christmas holiday and year-end. In the coming week, other than the Omicron, several important economic data including PMI, US unemployment data are likely to influence the global markets.
The economic data from the major global markets for next week are given below.
| Important Global Macro Data Next Week | ||
| 3 January 22 | Markit Manufacturing PMI-Dec | US |
| 4 January 22 | Jibun Bank Manufacturing PMI-Dec | Japan |
| 4 January 22 | Caixin Manufacturing PMI-Dec | China |
| 4 January 22 | Markit/CIPS Manufacturing PMI- Dec | UK |
| 4 January 22 | ISM Manufacturing PMI Dec | US |
| 4 January 22 | JOLTs Job opening-Nov | US |
| 5 January 22 | Consumer Confidence-Dec | Japan |
| 5 January 22 | ADP employment Change -Dec | US |
| 5 January 22 | Markit Service PMI -Dec | US |
| 5 January 22 | FOMC Minutes | US |
| 6 January 22 | Jibun Bank Service PMI-Dec | Japan |
| 6 January 22 | Markit/CIPS Service PMI Dec | GB |
| 6 January 22 | Balance of Trade-Exp/IMP | US |
| 6 January 22 | Initial Jobless Claim | US |
| 6 January 22 | ISM Non Manufaturing PMI Dec | US |
| 6 January 22 | Tokyo CPI Dec | Japan |
| 7 January 22 | Monthly Unemployment Rate -Dec | US |
Nifty & Bank Nifty trends for the next week ( 3- 7 January 2022)
On the weekly chart, the Nifty spot price trading range for the week is 16860 to 17600. You can buy near low and sell at high. The current trend is positive for Nifty
Bank Nifty spot price trading range for the week is 34740 to 36770. You can buy near low and sell on the higher side. The current trend in Bank Nifty is positive.
You can also follow our daily Nifty and Bank Nifty futures, trends, trading strategies, and market updates.
FII & DIIs flow
The Foreign Institutional Investors (FIIs) were the seller in the cash segment, they sold Rs 2217.1 crore for the week ended 31 December. The Domestic Institutional Investors (DIIs) were the buyers and they bought Rs 4273.55 crore in the cash segment in the last week of the year 2021
On a monthly basis, FIIs have pulled out more than Rs 35,000 cr from the cash segment, continuously selling for the third straight month. If we analyze FII’s daily data in the last 15 days, though they are net sellers, their selling has come down. On the other hand, the positive part is, the market is getting continuous support from the DIIs. It would be interesting to see the institutional investors in the new year. Traders should keep tracking of the FIIs and DIIs flow to know the market direction.
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Nifty and Bank Nifty Prediction for Monday, 3 Jan 2022
Happy Investing!!
Editor’s Desk
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