Want to Invest in Stock Market next week? Must read this

 

Indian stock markets closed more than 3% percent higher during the week ended 6 August. If you want to invest in stock market next week then you must read the post.

The domestic markets gained due to the positive PMI data, better auto sales numbers, FIIs inflow, and strong corporate earnings. However, the markets closed slightly negatively after the RBI policy was announced on Friday. RBI maintained the status quo in its latest Monetary policy announced on Friday. Factors that may impact the Indian stock market next week (9-13 Aug) are given below

 

Corporate earnings for Q1FY22

 

Most of the Nifty 50 companies have already announced their corporate earnings for the first quarter. Next week six Nifty 50 companies will report their first-quarter earnings and the market will react to their quarterly earning, the schedule is given below.

 

Q1 FY22 Results dates for Nifty50 companies
9 August 2021	Shree Cement
10 August 2021	Coal India
12 August 2021	BPCL
12 August 2021	Hero Motor Corp
12 August 2021	Tata Steel
13 August 2021	Grasim

 

Macroeconomic data

 

In the next week, inflation will be the key driver for the markets. The higher inflation is the main concern for RBI at this moment. In last week’s Monetary Policy meeting, RBI has raised the retail inflation projection for the current fiscal to 5.7% from 5.1 earlier projected. In June we have seen a slight downward in retail inflation and in July, retail inflation may further cool down due to a downtrend in food prices. The other macroeconomic data for the next week are given below.

 

Economic Data Next Week
12 Aug 2021	Industrial Production (IIP)
12 Aug 2021	CPI Inflation
13 Aug 2021	Deposit growth
13 Aug 2021	Bank Loan Growth

 

Global market cues

 

Global markets were positive last week due to strong corporate earnings. In the coming week, retail inflation will be the main highlight for the global markets as well, as major countries will be announcing core inflation rates. The other economic data that are going to announce next week are given below:

 

Important Global Macro Data Next Week
9 August 2021	Inflation Rate July	China
9 August 2021	Consumer Inflation expectation	US
11 August 2021	Core Inflation	US
12 August 2021	PPI MoM	Japan
12 August 2021	Industrial Production	GB
12 August 2021	GDP Growth	GB
12 August 2021	US Jobless Claim	US
13 August 2021	Export & Import Data	US

 

Want to invest in the stock market futures indexes for next week?

 

 

Expert view on Nifty Futures for the next week  (9-13 Aug)

 

Primary Trend of NSE Nifty index futures for next week: Positive

Range-Bound Trend of Nifty futures: All up Moves Initiates Profit Booking (Sale) @ 16350 whereas All Down Moves Initiates Short Covering (Buy) @ 16150

Suppose Nifty share price in futures Moves Above 16305 and sustain. Then you should Buy Nifty futures with 1st Target of 16332 during the day or week with a Stop Loss of 16220 FOR the Target of 16332- 16354- 16380- 16427

Suppose Nifty share price in futures Moves Below 16220 and sustain. Then you should Sell with the 1st Target of 16195 during the day or week with a Stop Loss of 16305. FOR the Target of 16195- 16155- 16127 -16078

 

Expert view on Bank Nifty Futures for next week  (9-13 Aug)

 

Primary Trend of Bank Nifty index future for the week: Positive

 

Range-Bound Trend of Bank Nifty share price in future: All up Moves Initiates Profit Booking (Sale) @ 36200, whereas All Down Moves Initiates Short Covering (Buy) @ 35750

Suppose the Bank Nifty share price in the futures Moves Above 36095 and sustains. Then you should Buy Bank Nifty futures with the 1st Target of 36190 during the day or week with a Stop Loss of  35700. FOR the Target of 36190 – 36380- 36760- 37170

If Bank Nifty shares price in the future Moves Below 35700 and sustained. Then you should Sell with the 1st Target of 35595 during the day or week with a Stop Loss of 35220. FOR the Target of 35595- 35390- 35200 – 35020

 

FII & DIIs investment in Indian stock markets

 

Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) both were net buyers in the cash market segment last week. After selling continuously for four months in the Indian stock markets, FIIs have turned net buyers in the first week of August. 

In the first week of August, FIIs inflow was Rs 2616.04 crore while DIIs investment was Rs 896.84 crores in the cash market. If the FIIs buying spree continues in the coming week then we may see further new record highs in the market.

 

Coronavirus risk & Vaccination

 

India reported 38,628 new covid cases on Saturday morning, a nearly 13 percent drop from Friday new cases. The positivity rate stands at 2.21 percent, less than 3 percent for the last 12 days. In India, the daily new Covid cases are reporting around 40K and 50 percent of cases are coming only from Kerala. In other places, the deadly infections are in a declining stage.

On the vaccine front, Indian has administered more than 50 crore doses in the country. To increase the pace of vaccination, the Drug Controller General of India (DCGI) has given emergency use authorization to the single-dose vaccine of Johnson and Johnson on 7 August. Few more vaccine companies have also applied to seek emergency use authorization. 

The delta variants of Covid-19 infections are surging in Western and some Asian countries, but in India, it is declining. In India, Covid-19 vaccination is also progressing. An investor who wants to invest in the stock market from a long-term perspective can accumulate good stocks on dips.

You can also read daily morning market updates before the markets get open and daily Expert view on Nifty and Bank Nifty in the evening.

 

You may also like to read,   Algo Trading Definition: Pros and Cons of Algorithmic trading

                                           Weekly Stock Market Analysis: Gainers and Losers

 

Happy Investing!!

Editor’s Desk

 

Disclaimer-

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