Stock Market Outlook: Ahead of the Market: 10 Things That Will Decide Your Stock Trading Monday
The highest weighting sub-index, Financial Services, rose 2.70 per cent this week to its highest in four months, led by gains in top private lender HDFC Bank after a sequential rise in deposits in the March quarter.
Here’s how analysts read the market pulse.
“The index remained sideways throughout the session, reflecting a pause in the market trend following the formation of a hanging man pattern. The lack of a directional breakout or pattern formation could result in sentiment continuing to remain sideways. On the higher side, 22650 represents important resistance. “It may prove to be a level. A new rally is not expected as long as the index remains below 22650. At the bottom, support is evident at 22300. If it breaks above, the index may fall to the 22000-21900 range,” said LKP Securities. said Rupak De, senior technology analyst at .
Nagaraj Shetti, senior technical research analyst at HDFC Securities, said, “Nifty’s near-term trend remains positive and the ongoing range movement in the market suggests the possibility of a sharp swing move on both sides. Hence, range expansion may be observed.” Both are around 22600 and 22300 levels. Therefore, a decisive move above the 22600 level could lead to a quick rally towards the 22800 level, while a slip below the 22300 level is likely to open a new round of weakness at the highs.”
That said, let’s take a look at some key indicators that suggest action on Monday.US markets ended in green
U.S. stocks closed higher on Friday, helped by an employment report that strengthened views that the economy remains healthy despite suggesting the U.S. Federal Reserve may postpone interest rate cuts. All major sectors in the S&P 500 rose, with communications services, industrials and technology among the biggest gainers.European stocks hit two-week lows:
European stocks fell to their lowest in more than two weeks on Friday, tracking hawkish comments from some U.S. Federal Reserve officials and uneasiness in global sentiment due to heightened tensions in the Middle East. The continent-wide STOXX 600 index fell 1.2%, its worst day since mid-October 2023. Benchmark indices in all major European economies – Germany, France, Italy and Spain – also fell by more than 1% each.
Technical view:
Nifty 50 closed flat at 22513 points and the daily chart suggests that the index is consolidating after a surge, which is a healthy sign.
“We expect consolidation to rise, so we have to accept some adjustments. On the upside, we expect the 22700 level to be the top of the rising channel. On the downside, there is important support at 22400-22350,” said Jatin Gedia, Sharekhan technical analyst at BNP Paribas.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading, especially on Alkyl Amines and FDC counters.
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 counters IIFL Finance, Aavas Financiers, NBCC, NCC, IRB Infra Developers and Safari Industries. 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 4,563 crore), ICICI Bank (Rs 1,647 crore), Kotak Bank (Rs 1,160 crore), RIL (Rs 1,088 crore), Axis Bank (Rs 971 crore), Bajaj Finance (Rs 863 crore) and SBI (Rs 755 crore) was 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 (Shares traded: KRW 4.4 billion), HDFC Bank (Shares traded: KRW 2.9 billion), ITC (Shares traded: KRW 1.6 billion), ICICI Bank (Shares traded: KRW 1.5 billion), ONGC (Shares traded: 13 billion) (crore), NTPC (equity volume: 1.1 crore) and SBI (volume: 99 lakh) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks such as NCC, Sun Pharma Advanced Research Company, Policy Bazar, Apar Industries, Jio Financial Services, Ipca Labs and Vedanta saw strong buying interest from market participants as they touched new 52-week highs, indicating bullish sentiment.
Stocks under selling pressure
No major stocks hit 52-week lows on Friday.
Sentiment Meter Favors Bulls
Overall, market breadth favored the bulls. 2,394 stocks closed in the green and 1,460 stocks closed 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.)
