Stock Market Prediction Next Week (5-9 Sept 2022)
Stock Market Prediction Next Week (5-9 Sept 2022): Indian equity markets ended marginally lower amid volatility for the second consecutive week ended 2 September. The benchmark Sensex and Nifty fell 0.05 percent and 0.11 percent respectively on a weekly basis. The market sentiments were downbeat as the central bankers sounded hawkish at the Jackson Hole symposium on the previous weekend and weaker than expected domestic economic data.
In the coming week, in absence of any domestic events markets will focus on global cues. The energy crisis in Europe and ECB interest rate decision will remain focused in the markets for the coming week. The other key factors that are likely to impact the stock market prediction net week are as follows.
Stock Market Prediction Next Week (5-9 Sept 2022)
Indian Stock Market Indexes Nifty & Bank Nifty weekly prediction
Nifty has witnessed a decent recovery during the week to resist near 17700 levels accompanied with some profit booking to close near 17500 levels. Nifty needs to breach the barrier zone of 17750-17800 levels for further up move. Technically, the Nifty spot price could trade in the range of 17800 to 17100 during the week. You can buy near low and sell at high. The current Nifty trend for Monday is slightly Negative.
Bank Nifty as of now witnessing a resistance near 39600 levels with bias and maintains a cautiously positive and decisive move past the barrier zone confirming a further up move. Bank Nifty spot price trading range for the week is 40500 to 38100. You can buy near low and sell on the higher side. The current trend in Bank Nifty for Monday is cautiously positive.
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
Domestic Economic Data
According to the RBI data shown on Friday, the country’s foreign exchange reserve dipped by $3 billion to $561.046 billion during the week ending August 26, as the RBI continued digging into reserves to prevent the rupee slide. According to the GDP figures from the Internation Monetary Fund (IMF), India has surpassed the UK to become the 5th biggest economy in the world, the calculation is based on US dollars and India extended its lead in the first quarter.
In the coming week, the S&P Global Services PMI data, foreign exchange reserve, and bank loan and deposit growth will be released.
Global Stock Market Prediction Next Week
Last week the major global stock markets closed lower as investors fret about an aggressive interest rate by the Fed, as indicated at the Jackson Hole symposium. After the monthly US job report on Friday, the concern has eased now.
In the coming week, the global stock market cues will set the domestic market direction. The ECB interest rate decision, PMI numbers, China’s inflation, and the Energy crisis will remain focused in the market including the below events.
| Important Global Macro Data Next Week | ||
| 5- Sept 2022 | Jibun Bank Services PMI Aug Final | Japan |
| 5 Sept 2022 | Caixin Service PMI | China |
| 5 Sept 2022 | S&P Global/CIPS UK Services PMI Aug | GB |
| 6-Sept- 2022 | BRC Retail Sales Monitor YoY Aug | GB |
| 6-Sept- 2022 | Household Spending Aug | Japan |
| 6-Sept- 2022 | ISM/S&P Global Services PMI | US |
| 7 Sept 2022 | Balance of Trade Exp/Imp | China |
| 7 Sept 2022 | Balance of trade Exp/Imp | US |
| 8 Sept 2022 | GDP Growth rate QoQ Final Q2 | Japan |
| 8 Sept 2022 | Initial Jobless Claim | US |
| 8 Sept 2022 | ECB Interest rate decision | EA |
| 9 Sept 2022 | Inflation Rate Aug | China |
| 9 Sept 2022 | PPI Aug | China |
ECB Interest Rate Decision & Energy Crisis in Europe
In the coming week, European Central Bank (ECB) interest rate decision is scheduled for 8th September. Eurozone money markets were pricing in a roughly 75% chance of an exceptionally large 0.75 percent points rate hike at its next week’s meeting, after the rate setter sounded hawkish at the Jackson hole Symposium and record high inflation.
On Friday after the market hours the Russian Energy supplier Gazprom announced that a technical fault would extend the pipeline closure. The news frets investors globally. The US markets erased all intraday gains and fell over 1 percent on the news, as this raised fears of greater energy market disruption in Europe and which could hit the economy
Crude Oil Prices
The crude oil prices gained on Friday on expectations that OPEC+ is likely to take a decision to cut production in its upcoming meeting on Sept 5. The fresh Covid-19 restriction in China and weakness in the global economy remain concerns over the markets. On a weekly basis Brent crude oil posted a weekly drop of 7.9% and WTI of 6.7%.
According to OPEC+ sources, the oil output quota may remain unchanged for October at Monday’s meeting. If the output remains unchanged then we may see further weakness in oil prices. The fall in crude oil prices will be beneficial to crude importing countries like India.
FII & DIIs flow
Last week, the Foreign Institutional Investors (FIIs) were the net buyers in the equity cash segment, they bought Rs 1305.54 crore. The Domestic Institutional Investors (DIIs) were net sellers, they sold Rs 230.25 crore for the week ended 2nd Sept.
FIIs continued to remain buyers in the Indian equity markets, despite the previous week’s hawkish comments from Fed and the rise in bond yields. The top reason why FIIs preferred to invest in the Indian equity markets may be their ownership in Indian corporate has fallen to a record high after aggressively selling between (Oct 21- June 22), better corporate earnings outlook, and strong macroeconomic factors. We feel FIIs inflow will continue in the near term and support the market from any big fall.
Conclusion:
Indian stock markets may remain in a range bound in the coming week as mentioned above. Any sustainable directional move will occur if the Nifty slips to 17100 or moves above 17800 on a closing basis. The above key factors may impact the stock market prediction in the coming week.
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You may also like to read, Nifty and Bank Nifty Prediction for Monday 5 Sept 2022
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