Indian stock market prediction for next week-Nifty| Bank Nifty

Before coming to the prediction of the Indian Stock Market for Next Week, let us first wrap up what had happened in this week. This week market was having four trading session, last Wednesday was a holiday on account of Eid-ul-Fitr. On a weekly basis, Nifty and Sensex were down 46.7 and 184.48 respectively which is almost 0.46 percent. Bank Nifty was down 518 points i.e 1.68 percent during the week. Nifty Midcap 100 and  Smallcap 100 index also fell 0.91 percent and 1.70 percent respectively. All points mentioned in this paragraph are on spot level basis.


Earlier this week, Nifty after touching an all-time high of 12103.05 on 3rd June Monday came down. Though on Friday, the last day of the week Indian stock market closed in flat to positive but in three trading session Nifty corrected almost 400 points.DIIs are the net seller in the month of June, sold 1289 Cr. so far. Whereas FIIs are the net buyer in this month bought around 725 Cr, but they are the net seller in the last three trading session.


On a Sectoral basis, Auto, Cement, Media, Metal, Telecom, and PSU Banking & Financial Services were the loser in this week. The sector like IT, Consumer nondurable were the gainers of the week. The top five Nifty 50 gainers of the week are Coal India, Bharti Infra, Hero Motocorp, and Wipro. Whereas the top five losers during the week are Gail, Indiabulls Housing, Yes Bank, Zee Ent. and Ultratech


Reasons for correction in Indian Stock Market this week



The reason behind the correction is NBFC liquidity issue after DHFL failed to pay on its bonds on last Tuesday, the credit rating agencies ICRA, CRISIL downgraded Commercial Papers issued by the company. This had created panic in NBFC sectors on Thursday and correction witnessed across all the sectors.


On Thursday 6th June, RBI’s Monetary policy was announced and it was as per market expectation. Consecutively for the third time, RBI has cut the interest rate and also change the outlook from neutral to accommodative. But as soon as the rate cut flashed Indian stock market starts profit booking. As if investors were waiting for the RBI’s Monetary policy to book their profit.


Friday after the market RBI issued a new framework for resolution of stressed asset. The changes in a new framework to handle the stressed asset are its now included small finance bank and NBFC along with Banks. Lenders have given choice to initiate legal proceedings for Insolvency or recovery whereas earlier Banks had to refer the borrower to NCLT if it failed to resolve the account within 180 days.


The new norms leave it to the discretion of lenders and give them 30 days to start working on a resolution plan from the day of default. The new stressed assets resolution framework offers relief to business facing temporary financial issues, empower lenders to take the decision.




Indian Stock Market Event for Next week



The next week the CPI and IIP numbers will be announced after market hours on Wednesday on 12th June. Current Account Deficit will be announced on 13th June Thursday after the market hours. On WPI and Foreign Exchange reserve numbers will be declared. Next week the Indian Stock Market will definitely react on RBI new framework on the stressed asset, we can see some up move in Banking and Financial service sectors.

Indian Stock Market Prediction for Next Week



Nifty Future Weekly Outlook - OHLC-(11941.65/12118.00/11801.20/11900.75)


Nifty Future Chart,Indian stock market predication
Nifty Future Chart 10th June-14th June


Primary Trend of Nifty Future: Volatile (Bias Down) – Expected Volatility of 14.2083% (Range of 234 Points)
Range Bound Trend of Nifty Future: All up Moves Initiates Profit Booking (Sale) @ 11985 whereas All Down Moves Initiates Short Covering (Buy) @ 11790
If Nifty Future Moves Above 11925 then you should Buy with 1st Target of 12045 during the day or any point during the week by Trailing the Stop Loss from 11775- 11850- 11900- 11975- 12050- 12100 FOR the Target of 12105- 12167- 12240
If Nifty Future Moves Below 11850 then you should Sell with 1st Target of 11730 during the day or any point during the week by Trailing the Stop Loss from 12000- 11925- 11875- 11810- 11725- 11675 FOR the Target of 11670- 11610- 11535




Bank Nifty Future Weekly Outlook - OHLC-(31326.85/31793.95/30670.35/31115.05)


Bank Nifty Future Chart,Indian Stock Market Predication
Bank Nifty Future Chart-10th June -14th June


Primary Trend of Bank Nifty Future: Volatile (Bias Down) - Expected Volatility of 17.9529% (Range of 775 Points)
Range Bound Trend of Bank Nifty Future: All up Moves Initiates Profit Booking (Sale) @ 31465, whereas All Down Moves Initiates Short  Covering (Buy) @ 30765


If Bank Nifty Future Moves Above 31250 then you should Buy with 1st Target of 31675 during the day or any point during the week by Trailing the Stop Loss from 30750- 31030- 31190- 31460- 31715- 31875 FOR the Target of 31890- 32100- 32370


If Bank Nifty Future Moves Below 30985 then you should Sell with 1st Target of 30560 during the day or any point during the week by Trailing the Stop Loss from 31475- 31200- 31050- 30775- 30500- 30350 FOR the Target of 30340- 30125- 29860


Conclusions:



Our last week’s report said that the benchmark indices Nifty and Bank Nifty would be volatile (bias corrective) which actually happened. Nifty and Bank Nifty corrected almost 046% and 1.68% during the week. The Indian Stock Market Prediction for Next Week also says that both the Nifty and Bank Nifty would be volatile (bias corrective) during the week. Traders are advised to put strict stop loss for each and every trade in the next week.
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Finogyan Team


Disclaimer-Finogyan has taken due care and caution in compilation of data for its blog. The views and investment tips expressed by investment experts on Finogyan are their own and not that of the website or its management. Finogyan is not SEBI registered Advisors and advises users to check with certified and SEBI registered experts before taking any investment decision. However, Finogyan does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Finogyan especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.

Indian stock market prediction for next week-Nifty| Bank Nifty Indian stock market prediction for next week-Nifty| Bank Nifty Reviewed by Finogyan on June 08, 2019 Rating: 5

1 comment:

Nifty and Bank Nifty trend for next week (16th-20th Sept)

Nifty and Bank Nifty Trend

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