Stock Market Prediction next week ( 7 – 11 March 2022)
Stock Market Prediction next week ( 07 – 11 March 2022): Indian equity markets closed lower for the week ended 4 March. Geopolitical tension was the main factor that continued to drive the global equity markets for almost two weeks. The tension between Russia and Ukraine shows no signs of slowing down, investors on both domestic as well as global continue to trade cautiously.
The volatility index ‘India VIX rose by 4.55% during the week to 27.96 levels. In the coming week, the Russia-Ukraine war will drive the markets, the other factors that can influence the markets are given below.
Stock Market Prediction Next Week (7- 11 March 2022)- The key factors to watch out
Russia- Ukraine War
Russia-Ukraine war will be the key factor that will dominate the global stock markets in the coming week. The war is continuing for the last 10 days, several sanctions were imposed by the US, EU, UK, Canada on Russia in the last week. According to the International Monetary Fund (IMF), sanctions on Russia will have a major impact on the global economy and financial markets.
The surge in crude oil and other commodity prices due to supply concerns will continue to be the focus for the markets, The US is planning a severe sanction on Russia, it may ban Russian oil imports in the coming days. Russia is the No.2 oil-producing country in the world, Europe and Asian countries are most dependent on Russian oil.
Imposing sanctions on Russian oil could further hike the crude oil prices. JP Morgan says crude oil could touch $185 if the Russian supply hit persistently. Traders should closely monitor the developments in Russia-Ukraine War in the coming week as this could dampen the market sentiments.
Domestic Macroeconomic data
There is no major domestic macroeconomic data lined up for the coming week except for IIP data. The Ministry of Statistics and Programme Implementation (MOSP) will announce India’s industrial production data for the month of January on 11 March Friday. The IIP data for the previous month (December) was reported as 0.4 percent as compared to 1.4 percent in November.
Global Stock Market Prediction Next Week
Worries about the impacts of the Russia-Ukraine war continue to drive the volatility in the global markets in the coming week. The surge in commodity prices due to supply disruptions, record-high oil prices are the real threat for rising inflation in the coming days. The major global markets will announce their February month’s inflation rate in the coming week, and the markets will react to the data. Other than the below economic data markets will also react negatively if the US considers a ban on Russian crude oil imports.
| Important Global Macro Data Next Week | ||
| 7 March 22 | Balance of Trade Exp/Imp FEB | China |
| 7 March 22 | Current Account JAN | Japan |
| 8 March 22 | Balance of Trade Exp/Imp FEB | US |
| 8 March 22 | GDP Growth Rate Dec end the quarter | Japan |
| 9 March 22 | Inflation rate | China |
| 9 March 22 | PPI MoM & YoY | Japan |
| 10 March 22 | Inflation rate | US |
| 10 March 22 | Initial jobless claim | US |
| 11 March 22 | GDP growth rate | GB |
| 11 March 22 | Industrial Production | GB |
| 11 March 22 | Michigan Consumer Sentiments | US |
| Prl March | ||
Crude Oil Price
The Brent crude oil price has touched $119 on 3 March, the highest level since June 2014. The fear about severe sanctions on Russia by the west and supply change disruptions pushed the crude oil prices at multi-year high levels. As per market experts, crude oil prices can touch more than $185 if the Russian supply hits.
Indian government while making budget 2022 considers crude oil prices around $75 levels. The appreciation in crude oil price will increase the inflation levels above the RBI’s comfort zone. Traders need to closely monitor the crude oil prices as this can dampen the market sentiments in the next week.
Nifty & Bank Nifty prediction for next week
Technically, the Nifty spot price could trade in the range of 15900 to 16550. You can buy near low and sell at high. The current Nifty trend for Monday is mild positive with cautious bias.
Bank Nifty spot price trading range for the week is 33300 to 35700. You can buy near low and sell on the higher side. The current trend in Bank Nifty for Monday is mild positive bias will remain cautious.
You can also follow our daily Nifty and Bank Nifty futures, trends, trading strategies, and market updates.
Omicron Covid Virus & Risk
In India, the daily fresh covid cases are reported less than 10,000. The country has so far administered more than 178 crore covid vaccine doses. India’s active caseload currently stands at 63K and the recovery rate is 98.65. India has seen a continuous decline in covid cases whereas some Asian countries like China, South Korea, Vietnam have seen some spike in fresh infection in the last week.
In India, most of the states lifted all covid related restrictions, last week Maharashtra government has eased all covid restrictions like Cinema hall, restaurant, shopping complex can run with full capacity. The ease of restrictions is positive for the markets.
FII & DIIs flow
The Foreign Institutional Investors (FIIs) have sold whereas the Domestic Institutional Investors (DIIs) were the buyers in the cash segment for the week ended 4 March. FIIs sold Rs 22563.08 crores, while DIIs bought Rs 12599.93 crore in the cash market segment during the week.
Though the domestic institutional investors are buying in the cash segment, the aggressively selling by the FIIs has hurt the market sentiments.FIIs have constantly contributed to market volatility since April 2021. Other than US Fed’s rate hike, uncertainties around the war in Ukraine and geopolitical tension have recently been the major reason for nervousness among FIIs. On a monthly basis, FIIs sold Rs 35,592 crore in February and Rs 14721 crore in March so far as per the NSDL data showed.
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Nifty and Bank Nifty Prediction for Monday 7 March 2022
Happy Investing!!
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