Stock Market Analysis: Ahead of the Market: 10 Things That Will Decide Your Stock Trading Monday

Nifty 50 hit an all-time high on Friday and recorded its best week in five months as strong macroeconomic data added to optimism about the global interest rate outlook.

Blue chip Nifty 50 and BSE Sensex rose 2.39% and 2.29% respectively, led by gains in energy stocks. Faster-than-expected quarterly economic growth and accelerated factory growth in November supported gains in domestic stocks.

Here’s how analysts read the market pulse.
“The Nifty continues to advance as the bulls remain in control. A consolidation breakout looks possible during the weekly period, paving the way for further bounce in the index. The sentiment, as indicated by the bullish cross in the weekly RSI, remains bullish.” of LKP Securities “Support on the lower side is firm at 20,200,” said Rupak De. “As long as it remains above this level, any decline can be viewed as a buying opportunity,” he said.

Shrey Jain, Founder and CEO, SAS Online, said, “The data signals a potential bounce in the Nifty, with a rise towards 20,600 in the coming sessions and a strong support level of 20,150 expected. However, there may be a pause in the event of an unfavorable election. Results. The overall trend remains positive, painting an optimistic picture for the market.”

That said, let’s take a look at some key indicators that suggest action on Monday.

US stocks rise
U.S. stocks rose on Friday for the start of December as comments from Federal Reserve Chairman Jerome Powell supported the view that interest rates have peaked. The Dow Jones Industrial Average rose 0.8%, and the Nasdaq Composite Index, centered on technology stocks, ended its upward trend. 0.6%. Meanwhile, the S&P 500 index rose 0.6% to 4,594.63, its highest since March 2022.

European stocks extend gains
European stocks continued their upward trend since November last Friday as euro zone bond yields continued to fall amid a sharp rise in mining companies and rising expectations of interest rate cuts. The pan-European STOXX 600 index rose 1.0% to its highest level since August, following a 6.4% monthly gain in November. It closed on the rise for three consecutive weeks, thanks to the weekly rise in real estate stocks that are sensitive to interest rates.

Tech View: Long candle
On Friday, Nifty rose 135 points in uncharted territory above 20,250 zone to form a reasonably positive candle on the daily chart. A long candle was formed on the weekly chart.

The near-term trend of Nifty continues to be positive and further upside can be expected in the coming weeks. The next rising level to watch is around 20510 (50% Fibonacci prediction, bottom of March 23rd – top of September 23rd – bottom of October 23rd). Immediate support will come in 20140, said Nagaraj Shetti of HDFC Securities.

Stocks with a bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on counters including REC, Laxmi Organic Industries, Macrotech Developers, PNB, Bank of India and Apollo Tires.

MACD is known to indicate a trend reversal in a traded security or index. When the MACD crosses above the signal line, it sends a bullish signal, indicating that the price of the security may rise and vice versa.

Stocks predict weakness ahead
MACD showed bearish signs on the counters of IRB Infra Developers, Devyani International, Balkrishna Industries, Ajanta Pharma, EIH and Eris Lifesciences. A bearish crossover in the MACD of this counter indicates that it has just begun its downward journey.

Most Active Stocks by Value
HDFC Bank (Rs 1,727 crore), RIL (Rs 1,713 crore), ICICI Bank (Rs 1,605 crore), Axis Bank (Rs 1,583 crore), ITC (Rs 863 crore), NTPC (Rs 788 crore) and Tata Motors (Rs 745 crore) crore) has been one of the most active stocks on the NSE in terms of value. The higher activity of a counter in terms of value can help identify which counters have the highest turnover for the day.

Most active stocks by trading volume
Tata Steel (traded shares: KRW 3.1 billion), NTPC (traded shares: KRW 2.9 billion), Power Grid (traded shares: KRW 200 million), ITC (traded shares: KRW 1.9 billion), ICICI Bank (traded shares: KRW 1.6 billion), Axis Bank (Shares traded: $1.4 billion), HDFC Bank (Shares traded: $1.1 billion), etc. were among the most traded stocks in the NSE session.

Stocks showing interest in buying
Stocks of NTPC, Axis Bank, L&T, Apollo Hospital, Bajaj Finserv, Grasim Industries and BPCL touched new 52-week highs, showing strong buying interest from market participants, indicating bullish sentiment.

Stocks under selling pressure
No major stock hit a new 52-week low on Friday.

Sentiment Meter Favors Bulls
Overall, market breadth favored strength with 2,109 stocks closing in the green and 1,638 stocks ending in the red.

(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)