Stock Market Prediction next week- 31 Jan – 04 Feb 2022: Indian equity market indexes were highly volatile last week. The markets fell around 3 percent for the week ended 28 January. The market was negative due to the fear of US interest rate hikes, rise in bond yields, aggressive selling by FIIs, and the US/Russia geopolitical tension.
Indian markets continue to remain in the volatile zone in the coming week, due to union budget, economic data, auto sales numbers, and global cues. Dala Steet will closely monitor the Union Budget 2022-23, which will set the market direction.
Key factors that are likely to influence the stock market prediction next week- 31st Jan – 4 Feb 2022
Union Budget 2022-23
Next week, all focus will be on the Union Budget 2022-23, which will be presented by the FM Nirmala Sitharam on 1st Feb 2022. This time the main focus of the budget will be growth, with an investment-oriented approach, some reduction in pandemic-related spending could be on the card.
As assembly elections in four states and one UT are nearby, the FM could also go for some populist measures while continuing with higher spending to boost economic recovery.
The Centre is likely to make some announcements to the segments that were affected by the Covid pandemics. As PSU Banks have now become profitable, capital infusions are unlikely this time. Make in India will also be focused to bring foreign money into the country.
Q3 Corporate Earnings
This will be an important week for corporate earnings. A total of 14 Nifty50 companies with more than 20% weightage will announce their Q3 earnings next week. Traders need to closely watch out for the earnings of the below-given companies.
| Q3 FY22 Result dates for Nifty50 Stocks | |
| 31 Jan 2022 | BPCL |
| 31 Jan 2022 | IOC |
| 31 Jan 2022 | SUN Pharma |
| 31 Jan 2022 | Tata Motors |
| 31 Jan 2022 | UPL |
| 1 Feb 2022 | Adani Ports |
| 1 Feb 2022 | TECHM |
| 2 Feb 2022 | HDFC |
| 2 Feb 2022 | Tata Consumer |
| 3 Feb 2022 | GAIL |
| 3 Feb 2022 | ITC |
| 3 Feb 2022 | TITAN |
| 4 Feb 2022 | Divis Lab |
| 4 Feb 2022 | Tata Steel |
Domestic Macroeconomic Data
Other than the Union Budget, the domestic macroeconomic data will also play a vital role to set the market direction next week. The key domestic macroeconomic data for the next week
| Economic Data Next Week | |
| 31 January 2022 | Infrastructure Output YoY Dec |
| 31 January 2022 | Government Budget Value Dec |
| 31 January 2022 | Economic Survey |
| 1 February 2022 | Markit Manufacturing PMI Jan 2022 |
| 1 February 2022 | Union Budget 2022-23 |
| 2 February 2022 | Balance Of Trade JAN Prel Exp/Imp |
| 3 February 2022 | Markit Service PMI Jan 2022 |
Auto Sales Numbers- January
The auto sales number for the month of January 2022 is expected next week. The January auto sales number in India is likely to remain flat or slightly better than previous months due to slowly easing of concerns regarding chip shortages and good harvest income. However, it is likely to be offset by dampened consumer sentiments amid the third covid wave and increased cost of production due to a rise in raw material prices.
Omicron Covid Virus & Risk
The third covid-19 wave is declining in India. The total new covid cases reported 2.34 lakhs with 893 deaths in the last 24 hrs, ended on Sunday morning. The total active cases are now 18.84 lakhs with a daily positivity rate of 14.5 percent. The impact of the third wave is not much, as it is milder than the earlier waves.
India has administered more than 165 crore vaccine doses and 75% of the adult populations are now fully vaccinated. The covid related restrictions imposed last month to curb the third wave are now lifting in many places in India, and this is positive for the Indian markets.
Global Stock Market Prediction Next Week ( 31 Jan -04 Feb 2022)
The global markets were very fluctuating last week due to Fed’s hawkish comments and geopolitical tension. In the coming week, global stock markets will react to the January PMI numbers, which are expected to remain weak due to the surges in Omicron infections.
Some volatility in the markets can be witnessed due to the fear ahead US unemployment rate for the month of January and BOE monetary policy in the next week. The other macroeconomic data that are expected in major global markets are given below.
| Important Global Macro Data Next Week | ||
| 31 January 22 | Consumer Confidence | Japan |
| 31 January 22 | Unemployment Rate | Japan |
| 1 February 22 | Jibun Bank Manufacturing PMI Jan | Japan |
| 1 February 22 | Marki/CIPS Manufacturing PMI Jan | GB |
| 1 February 22 | BOE Consumer Credit Dec | GB |
| 1 February 22 | Markit Manufacturing PMI Jan | US |
| 3 February 22 | Jibun Bank Services PMI Jan | Japan |
| 3 February 22 | Markit/CIPS Service PMI Jan | GB |
| 3 February 22 | Markit Service PMI Jan | US |
| 3 February 22 | BOE Interest rate decision | GB |
| 3 February 22 | Initial Jobless Claim | US |
| 4 February 22 | Unemployment Rate | US |
Nifty & Bank Nifty prediction for the next week ( 31 Jan – 04 Feb 2022)
Technically, the Nifty spot price could trade in the range of 16670 to 17550. You can buy near low and sell at high. The current Nifty trend is negative and volatile.
Bank Nifty spot price trading range for the week is 36500 to 38700. You can buy near low and sell on the higher side. The current trend in Bank Nifty is negative and Volatile.
You can also follow our daily Nifty and Bank Nifty futures, trends, trading strategies, and market updates.
FII & DIIs flow
The Foreign Institutional Investors (FIIs) have sold aggressively in the equity cash segment, for the week ended 28 January. The Domestic Institutional Investors (DIIs) were the buyers last week, bought less than 50% of the total FIIs selling.
FIIs sold Rs 22158.15 crores, while DIIs bought only Rs 10849.4 crore in the cash segment for the week ended 28 January 2022. On a monthly basis, FIIs sold Rs 37721.87 crores while DIIs bought Rs 18279.75 crores in the cash segment. This is the fourth consecutive month, FIIs sold aggressively in the Indian equity markets.
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