Stock Market Prediction for F&O Expiry week (27- 31 Dec)
Stock Market Prediction for F&O Expiry Week ( 27 Dec – 31 Dec 2021): Indian stock market indexes managed to close in the green for the week ended 24 December. The broader markets underperformed as compared to the benchmark indexes. After the sharp sell-off last Monday due to weak global cues and continues FIIs selling, Indian markets recovered their losses and managed to close slightly higher for the week. You can read last week’s market highlights here.
Next week will be the last trading week for the year 2021. There are no important economic events for the next week. The market volume may remain low as compared to normal days. The news related to Omicron variants is likely to set the market directions next week. We may also see some volatility in the mid of the week due to the monthly F&O expiry.
Key factors that are likely to impact the stock market prediction for F&O expiry week ( 27 to 31 Dec)
Omicron Covid Virus & Risk
India reported less than 7K fresh covid-19 cases and 162 deaths in the last 24 hours as the report showed on Sunday morning. The active Covid-19 cases are now 76K. The covid-19 cases are declining in India but the new variant Omicron increased to a total of 422 cases, and it’s now spread across 17 states and UT. Out of the total cases, 130 people have recovered so far and there is no casualty. In many places, a night curfew has been imposed to curb the spread of the new variants.
Globally the stock market indexes reacted negatively to the surge in Omicron variants. European countries reimposed restrictions and lockdown to curb the spread of omicron variants in the region. Traders worried about the uncertainty of Omicron and its impact on the global economy. Last week, Moderna claimed that its booster shot is capable to tackle the Omicron variants has helped the global markets to erase early week losses.
In India more than 141 crores Covid vaccine doses administered so far. Indian has now allowed vaccine doses for the first time to 15-18 years older from 3 January 2022, and booster does to health workers and some older citizens. Any positive news from the Omicron front will definitely improve the market sentiments otherwise we may see some more volatility in the markets. Traders need to closely monitor the Omicron-related news to know the market trends.
Now take professional stock market online courses, learn about technicals, what is Bitcoin, etc absolutely FREE, Offer valid for a limited period. Hurry !! Click here to know more.
Macroeconomic data
There are no major events scheduled in the coming week for the Indian markets. The domestic economic data that are going to release next week are
| Economic Data Next Week | |
| 31st December 2021 | Government Budget Value |
| 31st December 2021 | Infrastructure Output YoY Nov |
| 31st December 2021 | Current Account Q3 |
| 31st December 2021 | External Debt Q3 |
Global stock market cues
Many global markets including US market indexes will return on Monday after a long weekend. Due to the holiday season, markets will have a thin volume in the coming week. We may see some relief rally in the markets next week, volatility cannot rule out on account of potential risk from Omicron variants. Any positive news on this front, we may see some improvement in the global market sentiments.
The economic data from the major global markets for next week are.
| Important Global Macro Data Next Week | ||
| 27 December 21 | Retail Sales YoY Nov | Japan |
| 27 December 21 | Industrial Profits YoY Nov | China |
| 28 December 21 | Unemployment rate Nov | Japan |
| 28 December 21 | Industrial Production Prel Nov | Japan |
| 28 December 21 | Richmond Fed Mfg & Services Dec | US |
| 28 December 21 | House Price Index Oct | US |
| 30 December 21 | Nationwide Housing Price Index Dec | GB |
| 30 December 21 | Initial Jobless claim | US |
| 31 December 21 | NBS Mfg & Non Manfg PMI Dec | China |
Nifty & Bank Nifty futures for the F&O expiry week (27 – 31 Dec 2021)
The monthly F&O expiry is scheduled for 30 December, markets are expected to remain volatile for the week. On the weekly chart, the Nifty spot price current position is on Sell, traders can continue the Sell position and reverse to the Buy position if the Nifty spot price closes above 17090 for the target of 17415
Bank Nifty spot price current position is Sell, traders can continue the Sell position and reverse to the Buy position if Bank Nifty spot price closes above 35400 for the target of 36200
FII & DIIs flow
The Foreign Institutional Investors (FIIs) were the seller last week, they sold Rs 6589.03 crore for the week ended 24 December. The Domestic Institutional Investors (DIIs) were the buyers and they bought Rs 6915.56 crore in the cash market segment for the week ended last Friday.
The market closed marginally higher last week as DIIs bought more than the FIIs. While analyzing last week’s FIIs outflow data, last three days the momentum of FIIs selling has become slow, and it may be due to Christmas and year-end. Traders need to watch out for the FIIs outflow closely, and if they turn buyers in the market, then we may see a U-turn in the market.
You may also like to read, Algo Trading Definition: Pros and Cons of Algorithmic trading
Nifty | Bank Nifty Prediction for Monday, 27 Dec 2021
If you like the post ” Stock Market Prediction for F&O Expiry Week ( 27 Dec – 31 Dec 2021)” please share it with others
Happy Investing!!
Editor’s Desk
Disclaimer-
Nifty50Stocks.com has taken due care and caution to compile the data for its Website. The views and investment tips expressed by investment experts on Nifty50Stocks.com are their own and for educational purposes. Nifty50Stocks.com is not SEBI registered Advisors. Nifty50stocks.com advises its users to check with certified and SEBI registered experts before taking any investment decision. However, Nifty50Stocks.com does not guarantee the accuracy, adequacy, or completeness of any information. Nifty50stocks.com is not responsible for any errors or omissions or the results obtained from the use of such information. Nifty50Stocks.com especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.
