Stock Market Direction for Next Week (5 – 9 July)
Indian Stock Market Direction for Next Week ( 5 – 9 July): Indian stock markets finished almost one percent lower during the week ended 2 July. The reason for the market fall was due to a contraction in PMI data after 11 months, FIIs outflow, and weak cues from other Asian market peers. However, the downside remained capped as the investor hopes that the economic recovery will accelerate after the announcement of a fresh stimulus package by the Finance Minister.
Factors that may impact the Indian stock market direction next week (5-9 July)
Macroeconomic Data
The manufacturing PMI data has contracted after 11 months in June. The Service and Composite PMI data is expected on Monday morning at 10.30 am. The Service PMI for the month of May was 46.4 and was below market expectation, compared to 54 in the previous month. Any further fall in Service PMI data can be negative for the market.
Global market cues
All major global market indexes except for Wall Street closed in the red during the week ended 2 July. On Monday, global markets will first react to the strong U.S employment data released on Friday. The major global economic data that are scheduled for the next week are given below.
| Important Global Macro Data Next Week | ||
| 5 July 2021 | Jibun Bank Service /Composite PMI | Japan |
| 5 July 2021 | Caixin Service/ Composite PMI | China |
| 5 July 2021 | Markit / CIPS UK Service & Composite PMI | GB |
| 6 July 2021 | Markeit Service & Composite PMI | US |
| 7 July 2021 | FOMC Minutes | US |
| 8 July 2021 | Initial Jobless Claim | US |
| 9 July 2021 | Inflation rate | China |
| 9 July 2021 | GDP & Industrial Production MAY | GB |
Indian Stock Market Index- Nifty & Bank Nifty Futures Direction for next week ( 5 – 9 July )
Nifty Futures for the next week ( 5 – 9 July )
Primary Trend of NSE Nifty index futures for next week: Positive
Range-Bound Trend of Nifty futures: All up Moves Initiates Profit Booking (Sale) @ 15810 whereas All Down Moves Initiates Short Covering (Buy) @ 15650
Suppose Nifty share price in futures Moves Above 15781 and sustain. Then you should Buy Nifty futures with 1st Target of 15813 during the day or week with a Stop Loss of 15702 FOR the Target of 15813- 15849- 15885- 16918
Suppose Nifty share price in futures Moves Below 15702 and sustain. Then you should Sell with the 1st Target of 15655 during the day or week with a Stop Loss of 15781. FOR the Target of 15655- 15624- 15576 -15528.
Bank Nifty Futures for next week ( 5 – 9 July)
Primary Trend of Bank Nifty index future for the week: Mild Negative
Range-Bound Trend of Bank Nifty share price in future: All up Moves Initiates Profit Booking (Sale) @ 35300, whereas All Down Moves Initiates Short Covering (Buy) @ 34700
Suppose the Bank Nifty share price in the futures Moves Above 35135 and sustains. Then you should Buy Bank Nifty futures with the 1st Target of 35205 during the day or week with a Stop Loss of 34840. FOR the Target of 35205 – 35285- 35450- 35620
If Bank Nifty shares price in the future Moves Below 34840 and sustained. Then you should Sell with the 1st Target of 34780 during the day or week with a Stop Loss of 35065. FOR the Target of 34780- 34695- 34600 – 34430
FII & DIIs investment in Indian stock markets
Foreign Institutional Investors (FIIs) were sellers while Domestic Institutional investors (DIIs) were buyers in the cash market during the week ended 02 July. FIIs have sold Rs 5416.84 crores while DIIs have bought Rs 6418.3 crores in the cash market segment during the week.
FIIs continuously selling in the cash market since April whereas DIIs are buying for the last four months. Since April, FIIs sold around 20,000 crores whereas DIIs invested 22,000 crores in the equity cash market. So far markets have not reacted negatively as FIIs outflow was not heavy and also DIIs have supported the market with their buying spree for the last four months.
Coronavirus risk & Vaccination
India recorded a single-day rise of 44,111 new Covid-19 cases on Saturday morning with 738 new fatalities, the lowest daily new cases in 86 days, according to the health ministry’s latest update. The Covid-19 recovery rate has also improved to 97.1 percent. In India, Covid-19 is in the decline stage, but still, there is a threat of the third wave which is expected in Aug-September according to experts.
Globally, there is a spike in new delta variants of Covid-19 infections, it has already spread over 98 countries so far. The spread of delta variants Covid-19 can be a big threat to the global stock markets.
On the vaccine front, India has administered more than 35 crore coronavirus vaccines so far. The government, last week has cleared the fourth Covid-19 vaccine for emergency use. The pharma major Cipla has been allowed to import Morderna’s Covid-19 vaccine for restricted emergency use in the country.
Monsoon Updates
According to MET Department, the crucial southwest monsoon, which waters over 70% of India’s rain-fed crops, is entering a weak phase and will provide subdued rainfall across the crucial agricultural belt for the next seven to ten days. This could dent the Centre’s expectations of a record harvest this year, led by rain-fed crops such as rice, sugarcane, cotton, and soya bean in the coming months. The delayed monsoon can even increase the food price which can cause higher inflation. Traders should closely monitor the monsoon-related news next week.
You can also read daily morning market updates for stock market direction before the markets get open next week and daily Nifty and Bank Nifty futures Prediction in the evening on our website.
You may also like to read, Best Stocks to Buy in India for Short Term in July 2021
Top Gainers & Losers- Weekly Stock Market Updates
Happy Investing!!
Editor’s Desk
Disclaimer-
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