Weekly Prediction-Nifty and Bank Nifty futures (25-29 Jan)

Key factors that are likely to drive the Nifty and Bank Nifty futures ahead of Budget

 

Nifty & Bank Nifty Prediction for the week (25-29 Jan): Indian stock markets closed marginally lower in the last week due to weak global cues. Next week markets will have four trading days, 26th January will be a holiday on the occasion of Republic day observation. In the next week, the factors that may drive the markets are Q3 earnings, 2021 Union Budget expectations, global cues, and FIIs inflow.

The key factors that are likely to drive the market next week are

 

Quarterly earnings: Nifty50 Stocks

 

Reliance Industries (RIL) has reported its Q3FY21 earnings on Friday post-market. The company reported a 12.5% YoY rise in its consolidated net profit to Rs 13101 crores. The Q3FY21 of RIL beats analysts’ estimates. Indian markets will first react to RIL’s Q3 earnings on Monday.

In the coming week, quarterly earnings will play a vital role to drive the market. There are a total of eleven Nifty50 stocks lined up for the announcement of their quarterly earnings next week. The schedule is given below.

 

Q3 Results dates for Nifty50 Stocks
25 Jan	Kotak Bank
25 Jan	LT
27 Jan	Axis Bank
27 Jan	HUL
28 Jan	Maruti
29 Jan	Cipla
29 Jan	IndusInd Bank
29 Jan	IOC
29 Jan	Sun Pharma
29 Jan	Tata Motors
29 Jan	UPL

 

Coronavirus risk & Vaccination

 

In India, the recovery rate of coronavirus cases has further increased in the last week. It is now recorded at 96.81%. The total active cases are now below 2 lakhs and the daily new coronavirus cases also dropped below 15K. The vaccination drive is going on smoothly across India, a total of more than 15 lakh health workers have been vaccinated so far. India has also started the Covid-19 vaccine exports in the last week. Overall, on the domestic front coronavirus is in a declining stage and it is helping the market to trade higher.

Globally, coronavirus cases are increasing and strict lockdowns were imposed in many countries. China has also reported a new strain of coronavirus cases in the last week. The European countries, the US, Japan South Africa, China are affected by the new strain of coronavirus and investors are worried about the growth of the global economy. Investors should keep track of the development on this front.

 

Nifty and Bank Nifty futures prediction for the week (25- 29 Jan)

Bank Nifty and Nifty futures will remain volatile during the truncated week because of the monthly expiry and Union Budget scheduled on February 1, 2021.

Nifty futures prediction for the week ( 25-29 Jan)

Primary Trend of Nifty futures for the week: Mild Negative & Volatile

Range-Bound Trend of Nifty futures: All up Moves Initiates Profit Booking (Sale) @ 14550 whereas All Down Moves Initiates Short Covering (Buy) @ 14250

If Nifty share price in futures Moves Above 14455 and sustain. Then you should Buy with 1st Target of 14502 during the day or week with a Stop Loss of 14318 FOR the Target of 14502- 14549- 14595- 14637

Suppose Nifty share price in futures Moves Below 14318 and sustain. Then you should Sell with the 1st Target of 14280 during the day or week with a Stop Loss of 14455. FOR the Target of 14280- 14238- 14185-14050

Bank Nifty futures prediction for the week ( 25-29 Jan)

Primary Trend of Bank Nifty future for the week: Mild Negative & Volatile

Range-Bound Trend of Bank Nifty share price in future: All up Moves Initiates Profit Booking (Sale) @ 31700, whereas All Down Moves Initiates Short Covering (Buy) @ 30800

If Bank Nifty share price in the futures Moves Above 31450 and sustain. Then you should Buy with the 1st Target of 31520 during the day with a Stop Loss of  30940. FOR the Target of 31520 – 31710- 31908- 32170

If Bank Nifty shares price in the future Moves Below 30940 and sustained. Then you should Sell with the 1st Target of 30805 during the day with a Stop Loss of 31450. FOR the Target of 30805- 30610- 30430 – 30350

 

Global market cues

 

The global market cues will depend mainly on FOMC meeting outcome, Coronavirus risk, and other macro data that are going to release next week. The schedule for macroeconomic data that the investors should watch out for next week are given below.

 

Important Global Macro Data Next Week
26 Jan 2021	Unemployment rate	GB
27 Jan 2021	Industrial Profit	China
28 Jan 2021	Fed Interest rate decision	US
28 Jan 2021	Retail Sales	Japan
28 Jan 2021	GDP price index Adv QoQ	US
28 Jan 2021	Jobless claim	US
29 Jan 2021	The unemployment rate, Tokyo Core CPI	Japan
	Industrial Production, Consumer Confidence

FII & DIIs investment in Indian stock markets

 

FIIs were the buyers whereas DIIs were the seller in the cash market segment in the last week. FIIs bought Rs 4176.17 crore while DIIs sold Rs 3436.26 crores in the cash market on a weekly basis. Though FIIs remained the net buyers in the cash market during the week, on Friday they sold Rs 636 crores. Investors should watch out closely the FIIs movement in the next week because so far strong FIIs inflow supported the domestic markets to trade higher.

 

You may also like to read,  Intraday Trading books to make money from Stock Markets

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Happy Investing!!

Editor’s Desk

 

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