Stock Market Prediction Next Week (30 May- 3 June 2022)
Stock Market Prediction Next Week (30 May- 3 June 2022): The Indian equity markets closed positive for the second consecutive week ended 27 May. The Sensex and Nifty were up 1.03 percent and 0.53 percent respectively during the week. The local markets gained with the support of positive global cues and domestic institutional investors (DIIs) buying.
In the coming week, other than global cues, the domestic economic data will be in focus and play a vital role to set the market direction. Technically the Indian stock market is looking positive for next week, the key factors that are likely to impact the stock market prediction are given below.
Stock Market Prediction Next Week (30 May – 3 June 2022)
Domestic macroeconomic data- GDP & GST collection
The domestic macroeconomic data will play a vital role in the coming week. The GST collection, GDP numbers, and PMI data will be in focus in the next week. The May GST collection is likely to remain around 1.40 lakh crore as per the sources, in April it was at a record high at 1.67 lakh crore.
Regarding FY22 GDP numbers, it is expected around 8.2-8.8% and for Q4 it is expected around 3-4%. Investors will closely monitor these numbers, as they may set the market directions next week. The schedule of other macroeconomic data that may impact the stock markets is given below.
| Economic Data Next Week | |
| 31 May 2022 | Infrastructure Output |
| 31 May 2022 | GDP Growth rate |
| 1 June 2022 | S&P Global Manufacturing PMI data May |
| 2 June 2022 | Balance of Trade Exp & Imp |
| 3 June 2022 | S&P Global Service PMI data May |
| 3 June 2022 | Foreign Exchange reserve |
| 3 June 2022 | Bank Loan/Deposit growth forecast |
Auto Sales Number
According to Moody’s Investor Service, among the Asia- Pacific countries, India is set to see the strongest growth in automotive sales in 2022. The auto sales number for the month of May will be announced on June 1. Traders having positions in auto stocks need to remain cautious, as per market experts, we may see some correction in the auto stocks after the announcement of the May sales figures.
Monsoon Updates
The sectors that are favorably impacted by a good monsoon are FMCG, Fertiliser, Consumer Durables, Tractors, and Two-Wheelers. All eyes will be on these sectors as the market is expecting a good and normal monsoon. According to the market analysts, if the monsoon goes well, we may see a lift in farm income and thus the demand, this will help to lower the inflation especially when food prices are rising. The southwest monsoon was supposed to hit Kerala on May 27, but it got delayed, IMD says will take 2-3 days more.
Global Stock Market Prediction Next Week
The global stock markets mostly closed in the green during the week ended 27 May. Last week the global markets reacted positively after the FOMC minutes which clarified that the interest rate may not hike aggressively now. The solid earnings reported from the US corporates, and retailer’s sales forecast supported the global markets for the week. In the coming week, the global markets will focus on the below macroeconomic data including PMI data of major economies and the US unemployment rate.
| Important Global Macro Data Next Week | ||
| 30 May 2022 | Unemployment rate APR | Japan |
| 30 May 2022 | Industrial Production APR | Japan |
| 30 May 2022 | Retail Sales APR | Japan |
| 31 May 2022 | NBS Mfg & Non-Mfg PMI May | China |
| 31 May 2022 | Consumer Confidence | Japan |
| 1 June 2022 | Jibun Bank Manufacturing PMI May | Japan |
| 1 June 2022 | Caixin Manufacturing PMI May | China |
| 1 June 2022 | S&P Global/CIPS Manufacturing PMI May | GB |
| 1 June 2022 | S&P Global Manufacturing PMI May | US |
| 2 June 2022 | Initial Jobless Claim | US |
| 3 June 2022 | Jibun Bank Service PMI May | Japan |
| 3 June 2022 | Unemployment rate May | US |
| 3 June 2022 | S&P Global Service PMI May | US |
Crude Oil Price
The crude oil prices rose on Friday and ended the week with gains. The Brent crude oil prices rose by 6% during the week and closed at $115.32 per barrel. For the last two days, the crude oil prices were hovering around 2 months’ high. The rise in prices is due to the prospect of a European Union (EU) ban on Russian energy products and the expectation of tighter U.S gasoline supplies.
The Analysts are expecting the crude oil to touch $120 per barrel soon, as the demand from China may increase in the coming days due to lifting Covid-19 restrictions in Shanghai from June 1. Being India is the second-largest importer of Crude oil in the world, the rising crude oil prices can be a negative impact on the Indian stock market.
Nifty & Bank Nifty trend and prediction
Technically, the Nifty spot price could trade in the range of 16800 to 15850 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 37200 to 34500. 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
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 9688.62 crore while DIIs bought Rs 11257.63 crore during the week ended May 27, 2022.
The FII’s selling intensity has reduced in the last week, it may be, as the market is expecting not an aggressive rate hike by the US Federal Reserve in the coming MPC meeting. Traders need to closely follow the FIIs trend in the coming week. So far FIIs have sold more than 2 Lakh crores worth of shares which is 4 times they had sold in the 2008-9 market crash.
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You may also like to read, Global & Indian Stock Market Weekly Recap ( 23- 27 May)
Nifty and Bank Nifty Prediction for Monday 30 May 2022
Happy Investing!!
Editor’s Desk
