Ahead of the Market: 10 Things That Will Decide Your Stock Trading Monday
NSE Nifty 50 and BSE Sensex fell 0.33% and 0.68% respectively this week.
Nifty and Sensex on Friday struggled to find direction before closing marginally higher on the back of a bounce in the final two hours in the financial sector after Thursday’s decline. Nifty 50 was trading 0.30% higher at 21,782.50 and Sensex was trading 0.23% higher at 71,595.49.
Here’s how analysts read the market pulse.
“Nifty has found support at 20-DMA for the second day in a row. A clear drop below 21,690 could weaken the trend. A clear drop below 21690 could lead to a correction towards 21,500. Conversely, a move above 21,800 could lead to a correction in our view,” said Rupak De of LKP Securities. “We may see a recovery in the short term,” he said.
Jatin Gedia, Technical Research Analyst at Sharekhan, said, “On the upside, Nifty may rise towards 21807 – 21830, where the key hourly moving averages are placed. Overall, the sideways movement in prices is likely to continue. Consolidation ranges are as follows: . It should be 21600 – 22050.”
That said, let’s take a look at some key indicators that suggest action on Monday.
american market
The S&P 500 closed above 5,000 for the first time on Friday, and the Nasdaq briefly traded above 16,000, boosted by gains in megacap and chip stocks including Nvidia as investors bet on artificial intelligence technology and eye strong earnings data.
The Dow Jones Industrial Average fell 0.14% to 38,671, the S&P 500 rose 0.57% to 5,026, and the Nasdaq Composite rose 1.25% to 15,990.
european stocks
European stocks closed slightly lower on Friday, as gains in Ubisoft and Hermès were weakened by a drop in L’Oréal shares, while rising government bond yields also put some pressure on them.
The pan-European STOXX 600 index rose 0.2% for the week but closed 0.1% lower.
Tech View: Small Body Positive Candle
On Friday, Nifty closed 65 points higher and found support at 20-DMA, forming a small body candle with a small shadow on the daily chart, sending a buy signal at lower levels.
The overall upward trend of Nifty remains intact and is likely to rise further towards the 22000 level in the near term. Nagaraj Shetti of HDFC Securities said a decline to 21600-21500 levels could be a buying opportunity.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on counters including Prism Johnson, Welspun India, Grasim Industries, Vodafone India, Ambuja Cements and Atul.
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 signs of weakness on counters of Persible Systems, AIA Engineering, L&T Finance Holdings, Quess Corp, Infosys and Data Patterns (India). 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 3,971 crore), SBI (Rs 3,076 crore), RIL (Rs 1,836 crore), ITC (Rs 1,346 crore), ICICI Bank (Rs 1,286 crore), L&T (Rs 1,038 crore) and Sun Pharma (Rs 966 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
SBI (traded shares: 4.3 billion), Tata Steel (traded shares: 3.6 billion), ITC (traded shares: 3.2 billion), HDFC Bank (traded shares: 2.8 billion), ONGC (traded shares: 2.6 billion), Power Grid ( Shares traded: 2.4 billion), NTPC (Shares traded: 1.8 billion) was one of the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks such as SBI, Apollo Hospital, Sun Pharma, Hero MotoCorp, TCS and ONGC touched their new 52-week highs, showing strong buying interest from market participants, indicating bullish sentiment.
Stocks under selling pressure
Shares of Vinati Organics, UPL, Navin Fluorine and Sharda Cropchem hit 52-week lows, indicating bearish sentiment in the market.
Sentiment Meter Favors Bears
Overall, market breadth favored the bears, with 2,573 stocks ending in the red and 1,270 stocks ending in the green.
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
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