Stock Market Prediction Next Week ( 07 Feb- 11 Feb 2022)
Stock Market Prediction next week ( 07 Feb- 11 Feb 2022)
Stock Market Prediction next week: Indian equity markets snap a two-week losing streak and close around 2.5 percent higher for the week ended 4 February. Indian markets witnessed a decent recovery in the initial three days of the week due to higher GST collection, positive economic survey, and optimistic growth-oriented union budget for FY22-23.
However, markets trim some early week gains due to negative cues from the US and European markets in the last two days. In the coming week, the market will first react to the SBI’s upbeat results announced on Saturday. The RBI monetary policy will be the key focus for the markets next week.
Key factors that are likely to influence the stock market prediction next week (07 Feb- 11 Feb 2022 )
Q3 Corporate Earnings
Indian markets are likely to react positively to the strong quarterly earnings reported by SBI on Saturday. SBI reported a 62.26 percent YoY rise in standalone net profit at Rs 8,431.88 in the December-end quarter. The NII also rose 6.48 percent YoY basis. The Nifty 50 stocks that are going to announce their Q3 results next week are given below.
| Q3 FY22 Result dates for Nifty50 Stocks | |
| 8 Feb 2022 | Bharti Airtel |
| 9 Feb 2022 | Power Grid |
| 10 Feb 2022 | Hero Motoco |
| 10 Feb 2022 | M&M |
| 11 Feb 2022 | Divis Lab |
RBI Monetary Policy & Macroeconomic Data
After Union Budget, the first RBI monetary policy meeting is scheduled for next week on Monday and Tuesday. The outcome of the RBI meeting is on Wednesday morning. The market will closely watch out for the commentary of RBI Governor Saktikanta Das, as some analysts are indicating tightening monetary policy, following the global central banks.
The street will closely monitor Das’s commentary, on how RBI tackles surging inflation and crude oil prices. But we feel the RBI MPC will remain growth supportive and maintain its accommodative stance on coming Wednesday.
| Economic Data Next Week | |
| 9 February 2022 | RBI Monetary Policy |
| 11 February 2022 | Industrial Production IIP – Dec |
| 11 February 2022 | Foreign Exchange Reserve |
| 11 February 2022 | Bank Loan and Deposit growth |
Omicron Covid Virus & Risk
There is a dip in covid cases in India. The country has reported 1.27 lakh covid cases on Saturday morning. The state governments have eased covid related restrictions in several states in the last week, as the third wave is milder than other waves with less hospitalization and fatalities. Indian markets have reacted positively to the government’s steps of lifting the restrictions.
Global Stock Market Prediction Next Week
Global markets closed mixed for the week ended 4 February. US markets closed higher with the support of upbeat monthly Job data and better than expected quarterly earnings from Amazon. The US 10 year treasury yields spiked above 1.9 percent last week, for the first time in two years. European markets mostly closed lower during last week, following the volatility from Wall Street. Investors were concerned after ECB indicates a rate hike to control inflation in the region.
Next week, China’s Shanghai will open after a long weekend and would release the PMI number on Monday. Next week, the global markets will react to the higher US long-term bond yields, and other macroeconomic data including US Inflation, UK’s GDP data.
| Important Global Macro Data Next Week | ||
| 7 February 22 | Caixin Services PMI Jan | China |
| 8 February 22 | Current Account Dec | Japan |
| 8 February 22 | BRC Retail Sales Monitor Jan | GB |
| 8 February 22 | Balance of Trade Exp/Imp Dec | US |
| 10 February 22 | PPI MOM JAN | Japan |
| 10 February 22 | Core Inflation | US |
| 10 February 22 | Jobless Claim | US |
| 11 February 22 | Monthly Budget Statement Jan | US |
| 11 February 22 | GDP growth rate Prel Q4 Dec | GB |
| 11 February 22 | Balance of Trade Dec | GB |
| 11 February 22 | Industrial Production | GB |
| 11 February 22 | Michigan Consumer Sentiment Feb Prel | US |
| 11 February 22 | Michigan Inflation expectation Feb Prel | US |
Nifty & Bank Nifty Prediction for the next week ( 07 Feb- 11 Feb 2022)
Technically, the Nifty spot price could trade in the range of 17200 to 17900. You can buy near low and sell at high. The current Nifty trend is Positive
Bank Nifty spot price trading range for the week is 37400 to 40000. You can buy near low and sell on the higher side. The current trend in Bank Nifty is Positive.
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 in the equity cash segment, for the week ended 4 February, but their selling intensity has become slow. The Domestic Institutional Investors (DIIs) were the buyers last week. FIIs sold Rs 7695.27 crores, while DIIs bought Rs 5923.71 crore in the cash market segment during the week.
As per the ET article, the FIIs net sold $10 billion in the domestic markets since October, the most since 2008. The heavy outflow is due to the concerns over a faster than expected interest rate hike by US Fed. FIIs sold $4.8 billion shares, the largest outflow across key emerging markets and the second-highest monthly tally in India. If we take past instances of major FIIs selling in India, FIIs selling generally eased when it reaches the peak of $8-$10 billion, so we may expect the same now.
You may also like to read, Best Stocks to Buy in India for Short Term in February 2022
Nifty and Bank Nifty Prediction for Monday, 7 Feb 2022
Happy Investing!!
Editor’s Desk
