Stock Market Predictions Next Week (22- 26 Aug 2022)
Stock Market Predictions Next Week (22- 26 Aug 2022): Indian stock markets advanced for the fifth consecutive week that ended on 19 August. The benchmark indices, Sensex and Nifty erased most of their early week gains on Friday and closed marginally higher by just 0.31 percent and 0.34 percent respectively during the week. The markets gained, as the domestic inflationary pressure eased, sustained buying by the FIIs, and strong global cues in the first half of the week.
In the coming week, markets would remain volatile as traders roll over positions in F&O segments from the near month August to September series. In absence of any major domestic events, markets will trade as per global cues. The crude oil prices, the rupee against dollar movement, FIIs, and DIIs activity will remain focused during the week.
Stock Market Predictions Next Week (22 – 26 Aug 2022)
F&O Monthly Expiry- Nifty & Bank Nifty weekly predictions
F&O expiry for the August series is due on the 25th of August and the market is expected to remain volatile during this F&O expiry week. Technically, the Nifty spot price could trade in the range of 18100 to 17350 during the week. You can buy near low and sell at high. The current Nifty trend for Monday is slightly Negative
Bank Nifty spot price trading range for the week is 40000 to 37700. You can buy near low and sell on the higher side. The current trend in Bank Nifty for Monday is slightly Negative.
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
Global Stock Market Predictions Next Week
The global stock markets will set the direction for domestic markets in the coming week in absence of any major events in India. On Friday the major global market indices were closed lower as the renewed concerns over the possible aggressive interest rate hike from the Fed have been rekindled after US central bank’s official hawkish comment.
In the next week on Monday, Asian markets will first react to China’s Loan Prime Rate (LPR) for 1 and 5 years. The central bank of China left the LPR unchanged in its July policy. The key economic data in the US like House Sales, Personal Consumption, Consumer Sentiments, and Q2 GDP numbers will remain focused and drive the global markets next week. The other global market events that will keep the traders busy in the coming week are given below.
| Important Global Macro Data Next Week | ||
| 22 August 2022 | Loan Prime Rate | China |
| 23 August 2022 | Jibun Bank PMI Flash Aug | Japan |
| 23 August 2022 | S&P Global/ CIPS PMI Flash Aug | GB |
| 23 August 2022 | S&P Global PMI Flash Aug | US |
| 23 August 2022 | New Home Sales July | US |
| 25-August -2022 | GDP Growth Rate QoQ 2nd Est Q2 | US |
| 25-August -2022 | Initial Jobless Claims | US |
| 25-August -2022 | Tokyo CPI Aug | Japan |
| 26-August -2022 | Personal Income and Spending | US |
| 26-August -2022 | Fed Chair Powells Speech | US |
| 26-August -2022 | Michigan Consumer Sentiments Aug | US |
Crude Oil Prices
The crude oil prices were almost stable last Friday but fell for the week on a stronger US dollar and fears that recession would weaken crude demand in the global markets. The Brent and WTI crude fell around 1.5% during the week. The strong dollar has capped the crude’s gains as it makes oil more expensive for importers who settle payments against the dollar.
The oil prices closed slightly higher on Friday, extending a rally into a third consecutive day, as investors weighed hopes for strong fuel demand after more than expected drawdown in US crude inventories was reported, brushing off worries about a global economic slowdown. Further rise in crude oil prices, above $100 per barrel, in the next week could be negative for the markets.
FII & DIIs flow
Last week, the Foreign Institutional Investors (FIIs) were the net buyers in the equity cash segment, they bought Rs 3128.96 crore. The Domestic Institutional Investors (DIIs) were net sellers, they sold Rs 1808.89 crore for the week ended 19 August.
The market sentiments turned bullish since FIIs turned into sustained buyers in July. In August so far they have bought Rs 17970 crore worth of shares in the Indian equity cash segment, the highest since February 2021. As per the market experts, FIIs have turned buyers in auto, capital goods, FMCG, and telecom sectors whereas they continued to sell in IT sectors.
According to the market analysts, the aggressive buying by the FII in August has put the Indian stock market into the overbought zone as the Nifty RSI hit an 11-month high of 83.83 on Thursday. With the return of FIIs in the Indian markets Nifty will continue to outperform and RSI will remain elevated. The DIIs have turned into sellers in the markets but they are not selling aggressively as of now, so far DIIs have sold Rs 6052 crores in August, which is a good sign for the Indian markets.
Conclusion:
We have already indicated two days back that the Indian markets will correct soon, so finally after eight days of rally markets witnessed the first correction on Friday. Markets may further correct in the coming week, as global market sentiments turned negative on Friday. Investors should take this as an opportunity to accumulate good-quality stocks on dips. Traders should remain cautious and avoid any carry-forward positions, as the monthly F&O expiry is due on Thursday.
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