Stock Market Prediction Next Week (7 Nov- 11 Nov 2022)
Stock Market Prediction Next Week (7 Nov- 11 Nov 2022): Indian equity markets ended higher for the third week in a row. The market sentiments were optimistic due to robust GST collection, positive PMI data, and FIIs inflow. However, some early gains got trimmed in the later part due to a 75 bps interest rate hike by the US Fed.
The coming week will be a truncated one, as markets will remain closed on 8 November on account of Gurunanak Jayanti. Next week, the market’s focus will now shift to inflation, as the US and China will announce their October inflation rate. The other key factors that are likely to impact the stock markets in the coming week are given below
Stock Market Prediction Next Week (7 Nov – 11 Nov2022)
Nifty & Bank Nifty weekly prediction
On Friday, the Nifty index maintained the 18000 zone, and in the final hours, Nifty picked up momentum to close above 18100 levels with an improved sentiment. A further up move is expected in Nifty in the coming days with the overall trend remaining intact. For the coming week, Nifty may trade in the range of 18500- 17800 levels.
On the final day of the week, Bank Nifty once again witnessed a sideways movement, slightly underperforming the Nifty index. Bank Nifty index moved in a tight range quite for some time on Friday and maintained support near 41000 levels. On a weekly basis, Bank Nifty would move in a range of 42400- 40300 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
Also read, Nifty and Bank Nifty Trading levels for Monday 7 Nov 2022
Quarterly Earnings
We are in the mid of the Q2 corporate earning season, and so far the revenue growth was better than estimates, but margin weakness is seen in sectors like cement and metals. The performance of domestic-oriented sectors like banking and auto is better than estimated.
On Monday, the market will first react to the SBI Q2 earnings, which reported its highest-ever quarterly profits after tax (PAT) in September end quarterly. The other Nifty 50 companies that will announce their Q2 earnings are given below.
| Q2FY23 Result dates for Nifty50 Stocks | |
| 7 Nov 2022 | BPCL |
| 7 Nov 2022 | Coal India |
| 7 Nov 2022 | Divis Lab |
| 9 Nov 2022 | Tata Motors |
| 10 Nov 2022 | Apollo Hospital |
| 11 Nov 2022 | Hindalco |
| 11 Nov 2022 | M&M |
Domestic Economic Data
According to RBI data showed, Indian foreign exchange reserves rose by $6.56 billion to $531.08 billion for the week ending October 28. This is also the biggest weekly jump since September 2021. Indian markets will react positively to the data on Monday. The other domestic economic data that are likely to impact the stock market next week are given below
| Economic Data Next Week | |
| 07 November 2022 | Exp/Imp- Balance of trade Oct prel |
| 11 November 2022 | Indian Foreign Exchange Reserve |
| 11 November 2022 | Manufacturing Production Sep |
| 11 November 2022 | Industrial Production Sept |
Global Stock Market Prediction Next Week
The global markets were volatile in the mid of the week due to US Federal Reserve’s hawkish stance after the policy outcome on Wednesday. However, the US markets rallied last Friday after the October job report, which raised hope that Fed may go slow in interest rate hikes. Asian markets may track the positive cues from Wall Street on Monday.
More confirmation about the news of China reopening and relaxing the zero-Covid-19 policies could also improve the global market sentiments next week. Market focus will now shift to the inflation rate as the US, China will announce their October month’s inflation rate.
The corporate earnings will remain focused and likely to impact the global markets next week. The other key economic factors that are likely to impact the stock market prediction are given below.
| Important Global Macro Data Next Week | ||
| 07 November 2022 | Balance of trade- Export/ Import Oct | China |
| 07 November 2022 | Halifax House Price Index Oct | GB |
| 08 November 2022 | BRC retail Sales Monitor Oct | GB |
| 08 November 2022 | Retail Sales Oct | EA |
| 09 November 2022 | Reuter Tankan Index Nov | Japan |
| 09 November 2022 | Current Account | Japan |
| 09 November 2022 | Inflation rate / PPI rate Oct | China |
| 09 November 2022 | Non-Monetary Policy Meeting | EA |
| 10 November 2022 | Core Inflation rate Oct | US |
| 10 November 2022 | Initial Jobless Claim | US |
| 11 November 2022 | PPI Oct | Japan |
| 11 November 2022 | GDP Growth Q3 | GB |
| 11 November 2022 | Balance of trade- Export/ Import Oct | GB |
| 11 November 2022 | Industrial production | GB |
| 11 November 2022 | Michigan Inflation Prel Nov | US |
| 11 November 2022 | Michigan Consumer Expectation Nov | US |
Indian Rupee Movements against the US dollar
On a weekly basis, the rupee ended almost flat, with barely any change. The Indian rupee remains flat despite big events like the Federal Reserve policy outcome, which fuelled to rally in US Treasury yields and increased the chances of a higher terminal rate.
On Friday, the Indian rupee rose and closed at 82.44 against the US dollar, it was closed at 82.88 in the previous session. The rupee got appreciated due to a rally in the Chinese yuan due to hopes of relief in US-China tensions and the expectation of easing covid-19 restrictions. Traders should closely monitor the rupee’s movements against the dollar, further strength in the rupee would be positive for the stock market
Crude Oil Prices
The crude oil price gained more than 5% on Friday amid uncertainty about future interest rate hikes by the US Fed. In addition to the OPEC+ production cut, the looming EU ban on Russian oil, which is likely to effect from Dec 5, and the speculation of China relaxing Zero-Covid-19 restrictions have supported the crude oil to trade higher last week.
On a weekly basis, Brent crude futures gained 2.9% and closed at $98.57 per barrel while WTI future was up by 4.7% and ended at $92.61 per barrel. Traders should remain cautious as we may see a further rise in crude oil prices, and this can have a negative impact on the domestic markets.
FII & DIIs flow
Foreign Institutional Investors (FIIs) were net buyers last week. They bought Rs 10338.72 crore worth of shares in the Indian equity markets cash segment during the week. On other hand, Domestic Institutional Investors (DIIs) remained as net sellers on a weekly basis. They sold Rs 4496.06 crore worth of shares during the week.
In October, FIIs trading was volatile, first half they remained net sellers and later they made some notable big buying in the end, which led to a marginal seller at the end. FIIs buying continued till November 4, if the buying spree continues in the coming week, we may see more up-move in the domestic markets.
Conclusion:
Indian stock markets are likely to open higher on Monday, due to a rise in foreign exchange reserve, strong Q2 earnings, and positive global cues. The SGX Nifty also closed above 18300 levels, indicating a strong opening on Monday. For more market direction you can follow our daily morning report at 7.30 am IST.
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You may also like to read, Global Stock Market-Weekly Updates (31 Oct – 4 Nov)
Indian stock market weekly updates ( 31 Oct-4 Nov)
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