Stock Market Prediction Next Week (23- 27 May 2022)
Stock Market Prediction Next Week (23- 27 May 2022): Indian equity markets gained 3 percent during the week ended 20 May with the support of positive Asian market cues. The benchmark indices snaps a five-week losing streak and closed higher for the week, despite continuous selling pressure from FIIs, fears of interest rate hikes to curb inflation, and slow economic growth. In the coming week, the below key factors including F&O monthly expiry, and FOMC minutes will remain focused.
Stock Market Prediction Next Week (23 – 27 May 2022)
Quarterly Earnings
We are in the last leg of the Q4 corporate earnings season. A total of 38 Nifty 50 companies have already announced their earnings so far and 6 companies are about to announce their earnings next week. The earnings were mixed in the last quarter of the FY22, as the companies mostly faced input cost pressure that affected their margin. The schedule for Q4 earnings of the Nifty50 companies in the coming week is below.
| Q4 FY22 Result dates for Nifty50 Stocks | |
| 23 May 2022 | Divis Lab |
| 24 May 2022 | Adani Ports |
| 24 May 2022 | Grasim |
| 25 May 2022 | Apollo Hospital |
| 25 May 2022 | Coal India |
| 27 May 2022 | JSW Steel |
Monsoon Updates
The Indian Metrological Department (IMD) had predicted good rainfall during the four-month-long monsoon season in 2022. Even the private weather monitoring agency Skymet has recently forecasted a normal monsoon in 2022. Monsoon is knocking on the door, any monsoon-related updates during the week will be in focus, as a strong monsoon will help to reduce the inflationary pressure in the country.
Global Stock Market Prediction Next Week
The global stock markets were ended mixed for the week. Asian markets mostly closed higher due to positive news from China while US and European markets ended in the red as investors feared about recession and slowdown in the economy.
In the coming week, the global markets will focus on the weekly macroeconomic data ( schedule given below) including the FOMC minutes. Investors will closely monitor the FOMC minutes to gauge the pace of interest rate hike in the Fed’s next meeting.
| Important Global Macro Data Next Week | ||
| 24 May 2022 | Jibun Bank PMI Flash May | Japan |
| 24 May 2022 | S&P Global/CIPS PMI Flash May | GB |
| 24 May 2022 | S&P Global PMI Flash May | US |
| 24 May 2022 | New Home Sales APR | US |
| 24 May 2022 | Fed Chair Powell’s Speech | US |
| 25 May 2022 | BoJ Gov Kuroda Speech | Japan |
| 25 May 2022 | FOMC Minutes | US |
| 26 May 2022 | GDP Growth rate QoQ 2nd Est. Q1 | US |
| 26 May 2022 | Initial Jobless claim | US |
| 26 May 2022 | Tokyo CPI YoY May | Japan |
| 27 May 2022 | Industrial Profits YoY April | China |
| 27 May 2022 | Personal spending & Income | US |
| 27 May 2022 | Michigan Inflation expectation May | US |
Russia- Ukraine War
A “ perfect storm” created by the war in Ukraine combined with the effects of climate change and the pandemic. The combination of all these issues has driven global hunger levels to a new high, United Nations officials said on Tuesday. On Wednesday, the United Nations has trimmed its global economic growth forecast from 4 percent to 3.1 percent for the current year.
This is because of the Ukraine war that has triggered increasing global food and commodity prices and elevated inflationary pressures while most of the country’s economy is still recovering from pandemics. The impact of the Ukraine war will continue and will make the market choppy from time to time, even if it stops now.
Crude Oil Price
The Brent crude oil July futures was closed almost flat on weekly basis, as worries about weaker economic growth offset expectations that crude demand could rebound in China. The Brent crude oil July ended with little change, only 0.90 percent higher during the week. It was trading between $105- 115 per barrel for the week.
In the coming week, we may see some volatility in the crude prices as Shanghai authorities lifted some covid restrictions. China is the world’s largest importer of crude oil, and so the demand for crude oil could rise in the coming days from China. Traders need closely monitor the crude oil prices in the coming week.
Monthly F&O Expiry Week: Nifty & Bank Nifty prediction
Indian markets will remain choppy next week due to the scheduled monthly F&O expiry. Technically, the Nifty spot price could trade in the range of 16700 to 15800 during the week. You can buy near low and sell at high. The current Nifty trend for Monday is Positive.
Bank Nifty spot price trading range for the week is 35500 to 33300. You can buy near low and sell on the higher side. The current trend in Bank Nifty for Monday is Positive.
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
Omicron Covid Virus & Risk
On Saturday, the new covid cases reported in India were 2323, in the last 24 hrs. According to the Union Health Ministry, the active cases are now recorded at 14996 and the daily positivity rate is 0.47 percent. The Covid cases are declining in other countries also, Shanghai plans to end the city-wide lockdown on June 1. Global markets will react positively if all covid-related restrictions are completely lifted in China.
FII & DIIs flow
The Foreign Institutional Investors (FIIs) were sellers in the Indian equity markets whereas Domestic Investors were the buyers during the week. FIIs sold Rs 11401.34 crore while DIIs bought Rs 9472.91 crore during the week ended May 20, 2022.
FIIs continued their selling spree in the Indian markets for the 8 straight months, selling around 2 Lakh crore so far from Oct 2021 to May 2022. However, the domestic institutions have supported the markets from the sharp fall and were the net buyers. Initially, the FIIs started selling due to an increase in Covid cases and overvaluation of Indian stocks, now in the last four months, FII’s withdrawal was due to interest rate hikes and global growth concerns. We believe that the trend of FIIs/FPI will remain volatile in the near future.
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You may also like to read, Weekly Global and Indian Stock Markets Analysis
Nifty and Bank Nifty Prediction for Monday, 23 May 2022
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