Stock Market Prediction Next Week (4-8 Sept 2023)
Stock Market Prediction Next Week (4-8 Sept 2023): Indian stock markets snapped a 5-week losing streak and ended with decent gains during the week. The Sensex and Nifty gained 0.77 percent and 0.88 percent respectively. The market sentiments were positive due to strong economic data from the domestic side and positive global cues, however, the upside remains capped due to the concern about monsoon deficit and FII outflow.
In the coming week, global macroeconomic data will remain the focus. The services and composite PMI from several economies, GDP data from Europe and Japan, and US & China Trade data will set the market direction. On the domestic front Services PMI data, progress in monsoon, crude oil prices, and FII flow will be key factors to influence the markets.
The other key factors likely to impact the stock market prediction are given below.
Stock Market Prediction Next Week (4-8 Sept 2023)
Nifty & Bank Nifty Prediction Next Week
The Nifty index once again maintained its crucial and important support near the 19250-19270 level for the 4th time last month. The Nifty witnessed a massive gain on Friday and closed on a strong note near the 19450 level. The sentiment once again turned positive.
A decisive breach above the 19550 level shall establish a strong conviction for further upward movement and can anticipate re-testing the psychological level of the 20000 mark in the coming days. On a weekly basis, the Nifty index could trade in a range of 19200 to 19800 levels.
On Friday, the Bank Nifty also gave a decent pullback from the 43800 level to touch the 44500 level during the intraday session. It is further anticipated to gain, as the majority of the frontline banking stocks showed a reversal in their trend.
For the Bank Nifty index, a decisive move above the 44800 zone would confirm a positive trend. The Bank Nifty index has strong support near 43600 levels. On a weekly basis, Bank Nifty could trade in a range of 43500- 45700 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
Macroeconomic Data
On Friday, the domestic markets climbed, as investors cheered after India’s GDP growth rate beat economist’s expectations. The Global rating agency Moody’s Investors Service, on Friday, raised India’s growth forecast to 6.7% from 5.5% estimated earlier. The strong services expansion and capital expenditure accelerated the growth in the second quarter of 2023.
India’s Services PMI data is scheduled for next week and is expected to remain robust. In July, the services PMI reading unexpectedly rose to 62.3 and the trend is likely to continue in August. The other key macroeconomic data for the next week is given below.
| Economic Data Next Week | |
| 5 September 2023 | S&P Global Services PMI- Aug |
| 5 September 2023 | Composite PMI |
| 8 September 2023 | Deposit & Bank Loan Growth |
| 8 September 2023 | Foreign Exchange Reserve |
Global Stock Market Prediction Next Week
The global stock markets ended higher for the week that ended on 1 Sept. The market sentiments were positive due to the decline in Treasury yields, as the weak economic data and steady inflation rate fueled hopes that the Fed would skip the rate hikes in September. The various measures from China boosted the investor’s sentiments and expansion of manufacturing PMI data also aided global markets in the last week.
In the coming week, the US markets will be closed on Monday on account of Labor Day. The PMI Services reading from various countries, the Trade Balance from China and the US, GDP growth rate from Europe and Japan will set the market direction. The other key macroeconomic data that are likely to impact the global markets are given below.
Macroeconomic Data
| Important Global Macro Data Next Week | ||
| 4 September 2023 | ECB President Largarde’s speech | EA |
| 5 September 2023 | BRC Retail Sales Monitor Aug | GB |
| 5 September 2023 | Jibun Bank Services PMI Aug | Japan |
| 5 September 2023 | IBD/TIPP Economic Optimism Index (Sep) | US |
| 5 September 2023 | Factory Orders (Jul) | US |
| 5 September 2023 | ECB President Largarde’s speech | EA |
| 5 September 2023 | ECB Consumer Expectation Survey | EA |
| 5 September 2023 | HCOB Services PMI Aug | EA |
| 5 September 2023 | S&P Global/CIPS Services PMI Data Aug | GB |
| 5 September 2023 | PPI MoM & YoY | EA |
| 6 September 2023 | Balance of Trade Exp & Imp Aug | US |
| 6 September 2023 | Retail Sales MoM & YoY July | EA |
| 6 September 2023 | S&P Global & ISM Services PMI- Aug | US |
| 7 September 2023 | Balance of Trade Exp & Imp Aug | China |
| 7 September 2023 | Halifax Housing Price Index- Aug | GB |
| 7 September 2023 | GDP Growth Rate Q2 | EA |
| 7 September 2023 | Employment Change Q2 | EA |
| 7 September 2023 | Jobless Claims | US |
| 8 September 2023 | GDP Growth Rate Q2 | Japan |
| 8 September 2023 | Current Account | Japan |
Crude Oil Prices
Crude oil prices hit 7-month highs on Friday and snapped a two-week losing streak. Oil prices are rising due to worries about the extension of production cut by Saudi Arabia. The world’s second-largest oil exporter, Russia has already agreed with OPEC+ partners to reduce oil exports next month
On Wednesday, the data showed U.S. crude stockpiles fell a third consecutive week, as refiners ramped up fuel processing to meet demand ahead of Monday’s Labor Day holiday. On a weekly basis, Brent crude oil prices rose about 4.8% during the week, the most it has increased in a week since late July. WTI Crude prices jumped 7.2% in the week, its biggest weekly gain since March.
Higher crude oil prices are likely to impact the domestic markets, as India is the second largest importer of crude oil in the world. Traders should closely monitor the crude oil prices in the coming.
FII & DIIs flow
Foreign Institutional Investors (FIIs) were the net sellers in the Indian equity markets. They have sold shares in three out of five trading sessions and offloaded shares worth Rs 4311 crore during the week.
Domestic Institutional Investors (DIIs) were the net buyers last week. They bought shares worth Rs 9570 crore, which is almost double what the FIIs sold, and supported the domestic markets from any significant fall.
After five consecutive months of buying in the Indian equity cash segment, Foreign investors were the net sellers in August. FIIs have sold shares for Rs 20620.65 in August, while DIIs have bought shares for Rs 25016.95 crore. The strong dollar and high 10-year Treasury yields are the reasons for FII outflow. Traders should closely monitor FIIs and DIIs activity next week, as the FIIs selling spree could further drag the domestic markets and vice versa.
Conclusion
Friday’s rally in the Indian stock markets indicates the market trend has changed, but for further confirmation, Nifty needs to close above 19550 levels. The global market trend is also positive and there are no crucial events or data lined up in the coming week. You can also follow our Daily Morning Report at 7:30 a.m. to know the market direction.
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