Stock Market Prediction Next Week (6-10 Feb 2023)
Stock Market Prediction Next Week (6-10 Feb 2023): The equity benchmarks logged strong gains in the week marked with high volatility. The market sentiments got boosted by the growth-oriented budget, as measures were taken to boost capital expenditure spending in the country, and relief to the taxpayers. The sentiments were also upbeat due to positive cues from the global markets, optimistic earnings, and strong economic data. However, the upside remained capped due to a heavy selloff in Adani stocks and FIIs outflow.
In the coming week, the Indian markets focus will now shift from the Budget to RBI monetary policy outcome, which is due on 8th February, and Q3 corporate earnings. The other key factors that are likely to impact the stock market prediction next week are given below.
Stock Market Prediction Next Week (6- 10 Feb 2023)
Nifty & Bank Nifty weekly prediction
On Friday, the Nifty index witnessed a decent pullback from the support zone of 17400 levels. The rally was well backed by the frontline Banking stocks like Axis Bank, Kotak Bank, HDFC Bank, ICICI Bank, and SBI which pulled the indices to move into a comfortable zone.
The Nifty index closed above the 17800 level establishing some conviction and clarity with bias improving, and expecting a further rise in the coming sessions. The nifty index has a support at 17500 and a resistance at 18200 on the spot level in the coming week.
Bank Nifty index has breached above the 41000 zone to improve the bias on the back of a sharp rally in the frontline banking counters as mentioned above. A further continuation of the momentum is expected in the Bank Nifty index in the coming sessions. The support for the week is seen at 40400 and resistance is at 42800 on the spot 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
Q3 Earnings
In the coming week market focus will now again shift from Budget to Q3 earnings. Most of the Nifty 50 companies have already announced their third quarter-end earnings so far. The Nifty 50 companies mostly beat their Q3 estimates last week.
SBI and ITC reported their Dec 2022 quarterly earnings after market hours on Friday. Both companies beat street expectations and are likely to see some up-move in the coming week. The Nifty 50 companies that are going to announce their Q3 earnings in the coming week are given below.
| Q3FY23 Result dates for Nifty50 Stocks | |
| 6th February 2023 | Tata Steel |
| 7th February 2023 | Adani Ports |
| 7th February 2023 | Bharti Airtel |
| 7th February 2023 | Heromotoco |
| 9th February 2023 | Hindalco |
| 10th February 2023 | M&M |
Macroeconomic data
According to the data showed by RBI, India’s foreign exchange reserves increased by USD 3.034 billion to USD 576.76 billion as of January 27. This is the third consecutive week of a jump in India’s forex reserve. In the coming week below are some macroeconomic data expected that can impact the market.
| Economic Data Next Week | |
| 08 February 2023 | RBI Interest rate Decision |
| 10 February 2023 | Bank Deposit & Loan Growth |
| 10 February 2023 | Industrial Production |
| 10 February 2023 | Foreign Exchange Reserve |
RBI Monetary Policy Outcome
According to the Reuters poll of economists, the Reserve Bank of India (RBI) is expected to raise its main interest rate by 25 bps to 6.5% in its policy meeting, the outcome is expected on 8th February, Wednesday. The central bank is likely to pause the rate hike thereafter and leave it at that level for the rest of the year, waiting for inflation to fall before slowing the interest rate.
Indian markets will react positively if the RBI hike interest rate as expected and could see a sharp rally if the Central Bank pauses the rate this time.
Global Stock Market Prediction Next Week
The major global stock markets mostly closed higher for the week that ended on 3 Feb. After an eventful week of Corporate earnings, the Central Banks meeting, PMI data, and US job reports, the next week, focus will again shift to corporate earnings.
Other than quarterly earnings, markets will also react to UK’s GDP data for the fourth quarter, US consumer sentiments, and China’s Inflation data. The other key economic data that are likely to impact the global stock market prediction are given below
| Important Global Macro Data Next Week | ||
| 06 February 2023 | Retail Sales Dec | EA |
| 06 February 2023 | CIPS Construction PMI | GB |
| 06 February 2023 | ECB President Lagarde’s Speech | EA |
| 7 February 2023 | Halifax House Price Index Jan | GB |
| 7 February 2023 | Balance of Trade Import/Exp | US |
| 7 February 2023 | Fed Chair Powell’s Speech | US |
| 8 February 2023 | Current Account Dec | Japan |
| 9 February 2023 | Initial Jobless claim | US |
| 10 February 2023 | PPI Jan | Japan |
| 10 February 2023 | Inflation rate Jan | China |
| 10 February 2023 | PPI Jan | China |
| 10 February 2023 | GDP Growth Q4 | GB |
| 10 February 2023 | Industrial Production Dec | GB |
| 10 February 2023 | Michigan Consumer Sentiments | US |
Crude Oil Prices
Crude oil prices declined almost 7 percent during the week. Brent crude settled below $80 per barrel while WTI crude ended near $70 per barrel after the strong US job report in January was announced on Friday. The oil prices have been in correction mode for a sixth straight week due to surpluses in fuel, according to Energy Information Administration (EIA).
There are still uncertainties about how the demand will pick up from China after fully abandoning of covid restriction. Hopefully, the crude oil will remain under pressure in the coming week too. As per the market experts, the downtrend in crude oil prices will continue next week also, and this will support the domestic markets.
FII & DIIs flow
Foreign Institutional Investors (FIIs) are consistently selling in the Indian equity markets. FIIs have offloaded Rs 14445.02 crore worth of shares while Domestic Institutional Investors (DIIs) were net buyers and they bought Rs 14184.51 crore in the cash segment for the week that ended on 3 Feb 2023.
Foreign investors have offloaded over Rs 41K crore worth of Indian stocks in the first month of 2023. According to market experts, FIIs are attracted to Chinese and other emerging markets as they feel that the Indian market is overvalued.
The intensity of selling by FIIs has intensified since Adani Group stocks crashed after the allegations of stock manipulation among other things by US-based short-seller Hindenburg Research. The FIIs selling spree will continue in the coming week too and this may impact the domestic stock market prediction.
Conclusion:
The US markets closed negative on Friday, and SGX Nifty is also indicating a negative opening for the Indian markets on the first day of the week. On Monday markets will first react to the strong Q3 earnings of SBI and ITC and remain volatile due to Adani-related news.
The RBI monetary policy, Q3 earnings, and global cues will remain focused and 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, Nifty and Bank Nifty Prediction for Monday 6 Feb 2023
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