Stock Market Prediction Next Week (5- 9 June 2023)
Stock Market Prediction Next Week (5- 9 June 2023): Indian stock markets ended the week slightly higher. The equity benchmarks Sensex and Nifty advanced 0.07 percent and 0.19 percent respectively. The markets gained three out of five trading sessions during the week. The sentiment was positive due to the progress of the US debt ceiling deal, optimistic economic data, and continuous FIIs inflow.
In the coming week, the domestic markets will focus on RBI monetary policy and global cues. Traders will be closely watching for OPEC+meeting scheduled on 4th June Sunday. The GDP growth rate of Japan and the Eurozone, and China’s inflation will also remain focus during the week. The other key factors that are likely to impact the stock market prediction are given below.
Stock Market Prediction Next Week (5-9 June 2023)
Nifty & Bank Nifty Prediction
The Nifty index after some volatile session closed in the green above the 18500 level on Friday, with near-term support visible and maintained near the 18470 zone. Auto stocks continue to show strength after monthly sales data and Metals also beginning to indicate improvement in the bias has much upside potential in the coming days.
The Nifty index needs to breach above the 18600-18650 zone for a fresh upward move. On a weekly basis, Nifty could trade in a zone of 18200-18900 levels.
The Bank Nifty has maintained the support zone near 43700-43800 levels witnessing some pullback with most of the frontline banking stocks having a lackluster session.
The Bank Nifty index has a strong resistance near the 44500 zone which needs to be breached decisively for further fresh upside move. On a weekly basis, Bank Nifty could trade in a range of 42900-45200 levels.
You can also follow our daily Nifty and Bank Nifty news, views, trends, market happenings, and market updates on our Website or Telegram Channel – https://t.me/nifty50stocks1
Macroeconomic Data
On the macroeconomic front, the RBI data showed on Friday that India’s foreign exchange reserves fell by $4.34 billion from the previous week. The foreign reserves fell for the second consecutive week and stood at a one-month low of $589.14 billion as of May 26.
The Index of Industrial Production (IIP) data rose 1.1% in March. IIP data for April will be released in the coming week and is expected to remain with slight changes, as the Core sectors data which account for almost 40% of IIP remained flat in April. The other key macroeconomic data that are scheduled in the coming week and likely to influence the markets are given below.
| Economic Data Next Week | |
| 5 June 2023 | Services PMI Data May |
| 8 June 2023 | RBI Interest Rate Decision |
| 9 June 2023 | Foreign Exchange Reserve |
| 9 June 2023 | Industrial Production |
| 9 June 2023 | Manufacturing Production |
RBI Monetary Policy
The Reserve Bank of India (RBI) Monetary Policy Committee review meeting is scheduled for next week 6-8 June. The outcome is expected on 8 June, and as per various reports RBI is expected to pause the rate hike in the upcoming meeting.
Market experts believe that the RBI may not cut the interest rates anytime soon, as the recent macroeconomic data showed strong economic growth, while the risk of inflation still exists.
The commentary after the RBI policy will be important, as traders will be closely looking for the inflation and GDP growth rate for the current financial year. Any indication of the rate cut in the current year can boost the market sentiments.
Monsoon Updates
Traders will be closely monitoring the progress of the monsoon in the coming week. According to an Indian Meteorological Department (IMD) reports the Arabian Sea will welcome rains by 4th June. Indian weather office retained its forecast for normal monsoon this year, although it said that there is a high probability of El Nino effect in the current year.
IMD further said that the rainfall between June-Sept will be 96% of the long-term average with an error of +,- 4% of the long-period average. The timely arrival of the monsoon in the next week will positively impact on the market.
Global Stock Market Prediction Next Week
The global stock market indexes mostly closed higher during the week. The global market sentiments were positive due to the progress of the US debt ceiling deal, cooling the inflation rate in Europe, and the hope of pausing interest rate hikes by the US Fed in the upcoming meeting.
In the coming week, global markets will focus on the economic data. IT stocks will be in focus, as Apple will hold a worldwide developers conference and unveil new releases on Monday. The US Trade and Consumer Credit data, China’s inflation data, Japan’s and Europe’s GDP numbers, and the Services PMI of several countries will remain in the focus. The other key macroeconomic data that are going to be released in the coming week are given below
Global Macroeconomic Data
| Important Global Macro Data Next Week | ||
| 05 06-2023 | Jibun Bank Services PMI May | Japan |
| 05 06-2023 | Ciaxin Services PMI | China |
| 05 06-2023 | HCOB Services PMI | EA |
| 05 06-2023 | S&P Global /CIPS Services PMI | GB |
| 05 06-2023 | PPI April | EA |
| 05 06-2023 | S&P Global/ISM Services PMI May | US |
| 6 June 2023 | BRC Retail Sales May | GB |
| 6 June 2023 | Retail Sales April | EA |
| 7 June 2023 | Balance of Trade May | China |
| 7 June 2023 | Export & Import May | China |
| 7 June 2023 | Halifax House Price Index | GB |
| 7 June 2023 | Balance of Trade May | US |
| 7 June 2023 | Export & Import May | US |
| 8 June 2023 | GDP Growth Rate Q1 Final | Japan |
| 8 June 2023 | Current Account | Japan |
| 8 June 2023 | Employment Change Q1 | EA |
| 8 June 2023 | GDP Growth Rate Q1 Final | EA |
| 8 June 2023 | Initial Jobless Claims | US |
| 9 June 2023 | Inflation Rate, PPI May | China |
Crude Oil Prices
Crude oil prices made a second consecutive rally on Friday and pared early week losses. The rally in the crude prices is mainly due to fear of production cuts by the OPEC+ members on Sunday’s meeting. For the week, WTI crude oil price was down 1.3% while Brent crude oil fell 1%.
The crude oil prices sank earlier in the week on concerns about slow progress in the US debt ceiling and on fear of another rate hike by the Fed. However, in the last two days, oil prices gained due to the speculation that OPEC+ members could impose a third production cut in the nine months. Traders should closely monitor the crude oil prices after Sunday’s meeting as higher crude oil prices could negatively impact the domestic markets.
FII & DIIs flow
Foreign Institutional Investors (FIIs) continued their buying spree, while Domestic Institutional Investors (DIIs) were net sellers in the Indian equity markets during the week. FIIs bought shares worth Rs 6519.73 crore while DIIs offloaded Rs 1043.1 crore shares for the week.
Foreign investors were the net buyers for the third consecutive month in May. In the last month, FIIs bought shares worth Rs 27856.48 crore while DIIs offloaded shares worth Rs 3306.35 crore. We feel the FIIs buying spree will continue in the current month also. Traders should keep track of FIIs and DIIs actively closely in the next week to gauge the market direction.
Conclusion
The Indian stock market trend is positive, and so far global cues are also supportive. The domestic markets are expected to remain positive in the coming week but traders should remain cautious and keep track of the above factors in the coming week. You can also follow our Daily Morning Report at 7.30 am to know the market direction.
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Nifty and Bank Nifty Prediction for Monday 5 June 2023
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