Stock Market Prediction Next Week (6-10 March 2023)
Stock Market Prediction Next Week (6-10 March 2023): Indian stock markets rallied on Friday and ended with decent weekly gains. The positive global cues, sharp rally in Adani group stocks, and strong Services PMI data supported the domestic markets on Friday. The indices pared early week’s losses and ended higher.
The coming week will be a truncated one, as markets will be closed on 7th March on account of Holi Celebrations. The global markets will drive the domestic market direction next week. The US Fed’s Chair Powell’s Testimony, Eurozone, and Japan’s GDP data, the BoJ interest rate decision, the inflation rate in China, and the Unemployment rate in the US will be in focus during the week. The other key factors that are likely to impact the stock market prediction as given below.
Stock Market Prediction Next Week (6 – 10 March 2023)
Nifty & Bank Nifty weekly prediction
The Nifty index after the consolidation of 4 sessions and rangebound movement has finally come out of the zone with a positive bullish candle pattern on the daily chart. To continue the positive momentum, further a decisive move above the 17800 zone needs to establish. For the next week, the Nifty index could trade in the range of 17200-18000 levels.
The Bank Nifty index witnessed a decent pullback moving past the 40800 zone quite decisively and closing above the 41000 levels has improved the bias and sentiment to some extent. The frontline banking stocks like ICICI Bank, Axis Bank, SBI, HDFC Bank, and Kotak Bank showing good pickup to anticipate a further rise in the coming days. The Bank Nifty index would have a weekly range of 40000-42600 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
According to the RBI data showed, India’s foreign exchange reserves dropped $325 million to $560.942 billion as of February 24, In the previous reporting week, the overall reserves had declined $5.68 billion to $561.267 billion and this is the third consecutive week of decline.
In the coming week, India’s index of industrial production (IIP) and manufacturing production data for January 2023 will be announced on Friday, 10 March. The IIP number was 4.3% in Dec easing from 7.3% reported in Nov. The eight-core has a 40.27% weightage in IIP, the latest eight-core data showed accelerated in January and so we can assume an increase in IIP data.
Global Stock Market Prediction Next Week
The global stock market plays a crucial role to set the domestic market direction, especially the US markets. Last week, dovish comments from the US Fed officials eased worries of a return to more aggressive Fed rate hikes. The US Treasury yields that touch a record high also slipped and global sentiments improved. Another factor that impacts positively was the growth of Chinese factory and services activity.
In the coming week, there are two heavyweight US economic events, Fed chair Jerome Powell’s testimony, and the US Non-Farm Payrolls report. Both can move markets on either side, especially if chair Powell becomes hawkish markets will move southwards. Japan’s monetary policy and China’s inflation rate will also remain focused at the end of the week.
Further, investors should also closely monitor the US 10-year-old Treasury yields, which slipped below 4% after hitting a record high of 4.09% on Thursday last week, Further up move of above 4% would create some volatility in the global stock markets.
Global Macroeconomic Data
| Important Global Macro Data Next Week | ||
| 06 March 2023 | S&P Global Construction PMI Feb | GB |
| 06 March 2023 | Retail Sales JAN | EA |
| 07 March 2023 | BRC Retail Sales Monitor FEB | GB |
| 07 March 2023 | Bal of Trade Exp & Imp JAN &FEB | China |
| 07 March 2023 | Halifax Housing Prices FEB | GB |
| 07 March 2023 | Fed Chair Powells Testimoney | US |
| 07 March 2023 | IBD/TIPP Economic Optimism MAR | US |
| 08 March 2023 | Current Account JAN | Japan |
| 08 March 2023 | GDP Growth rate 3rd est Q4 | EA |
| 08 March 2023 | Employment Change Q4 | EA |
| 08 March 2023 | Fed Chair Powells Testimoney | US |
| 09 March 2023 | GDP Growth Rate Q4 | Japan |
| 09 March 2023 | Inflation rate Feb | China |
| 09 March 2023 | PPI FEB | China |
| 09 March 2023 | Initial Jobless Claim | US |
| 10 March 2023 | BoJ Interest rate decison | Japan |
| 10 March 2023 | GDP JAN | GB |
| 10 March 2023 | Industrial Production JAN | GB |
| 10 March 2023 | Balance of trade JAN | GB |
| 10 March 2023 | Unemployment Rate FEB | US |
| 10 March 2023 | ECB President Lagarde’s Speech | EA |
Crude Oil Prices
The crude oil prices jumped on Friday by 2% and over 4% on a week after Energy Information Administration (EIA) reported the record crude oil exports for last week. Export is increasing as more demand is coming from the world’s number-one crude oil importer China after Covid restrictions are completely lifted.
On a weekly basis, Brent crude oil prices gained 3.7% while WTI was up by 4.4%. In the coming week Fed’s interest rate outlook, optimism about China’s recovery, and US unemployment will set the crude oil direction. A rise in crude oil prices will impact the Indian economy, as India is the second largest importer of crude oil. Traders should closely monitor the crude oil prices in the coming week.
FII & DIIs flow
Foreign Institutional Investors (FIIs) turned net buyers again in the Indian equity markets last week. They have bought Rs 6010.44 crore worth of shares while Domestic Institutional Investors (DIIs) invested Rs 12558.91 crore in the cash segment during the week that ended on 3 March 2023.
So far in March foreign investors bought Rs 12582.17 crore worth of shares while Domestic institutional investors purchased Rs 5717.38 crore. Foreign investors made big buying on Thursday of Rs 12770.81 crores, the largest single-day buying from FIIs in 2023.
This also included large bulk deals in four Adani stocks. Meanwhile, the DIIs continued their buying spree. The Nifty could touch again 18K if FIIs continue their buying. Investors should closely monitor the FIIs and DIIs activity in the coming week.
Conclusion:
After a solid rally on Friday, we feel the positive trends would continue in the markets on Monday. The domestic markets will remain closed on Tuesday on account of the Holi Celebration. The volatility in the markets will remain high in the latter half of the week due to US Fed Chair Powell’s Testimony and US monthly Unemployment data.
Traders should avoid taking any carryforward position on Monday. You can also follow our Daily Morning Report at 7.30 am to know the market direction.
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