Market Pulse: Ahead of the Market: 10 Things That Will Decide Your Stock Trading Monday
The Nifty 50 index ended 0.22 per cent lower at 21,731 points, while the Sensex closed 0.23 per cent lower at 72,240 points. Both indices were slightly below their previous session’s record highs.
The Nifty is up over 20% in 2023, while the Sensex is up nearly 19%, recording its best year since 2021 and its second-best year since 2017. This was driven by continued domestic mutual fund inflows, overseas purchase gains and better-than-expected performance. Macroeconomic growth and steady corporate profits.
Here’s how analysts read the market pulse.
“Immediate support is observed around 21600, then 21500 and strong support is around the main low around 21300. Although the price is in uncharted territory with no visible resistance, 21850 and 22000 create overbought conditions. Considering this is an immediate hurdle, traders need to monitor these levels and adjust their strategies accordingly,” said Rajesh Bhosale, technical analyst at Angel One.
Ajit Mishra, SVP – Technical Research, Religare Broking said, “We can see further consolidation in the index and it will be healthy after the recent surge. We expect Nifty to remain in the 21,300-21,500 area if it declines during the consolidation period and position “We reiterate the target level of 22,150. Participants should focus on stock selection and prefer index majors.”
That said, let’s take a look at some key indicators that suggest action on Monday.
american market
U.S. stocks closed slightly lower on Friday, the last trading day of 2023, ending a strong year-end rally as investors keep an eye on looser monetary policy next year.
Stock markets showed notable upward momentum toward the end of the year, with all three major indices posting monthly, quarterly and annual gains. All three companies recorded double-digit growth this year.
european stocks
European stocks ended 2023 with a year-to-date gain of about 13% on hopes of easing monetary policy from major central banks next year.
The pan-European STOXX 600 index edged up 0.1% on Friday, marking its seventh straight week of gains and its best December performance since 2021. Among the top performers were interest rate sensitive technology stocks, which ended the year 12.6% higher.
Tech View: Doji-type candle
On Friday, Nifty broke a five-day winning spell and ended the last trading day of 2023 down 47 points and formed a high wave or doji candle pattern. A long candle appeared on the weekly chart.
A short-term consolidation or range shift is likely over the next 1-2 sessions before resuming upward momentum in the next session. Nagaraj Shetti of HDFC Securities said immediate support is at 21550 and the next upside target would be watched at 22000-22200 levels.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on the counters of Vodafone Idea, Olectra Greentech, Kalpataru Power, Sun Pharma Advanced Research, GMR Infra and ZF Commercial Vehicle Control Systems India.
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 the counters of Syrma SGS Technology, Supreme Industries, Century Plyboard, L&T, Coforge and Birlasoft. A bearish crossover in the MACD of this counter indicates that it has just begun its downward journey.
Most Active Stocks by Value
Tata Motors (Rs 3,233 crore), HDFC Bank (Rs 2,135 crore), RIL (Rs 1,406 crore), ICICI Bank (Rs 1,225 crore), Axis Bank (Rs 967 crore), SBI (Rs 849 crore) and Maruti Suzuki (Rs 728 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 4.9 billion), Tata Motors (Shares traded: KRW 4.1 billion), SBI (Shares traded: KRW 1.3 billion), ITC (Shares traded: KRW 1.2 billion), NTPC (Shares traded: KRW 1.2 billion) ), Power Grid (Shares traded: 1.2 billion), HDFC Bank (Shares traded: 1.2 billion), etc. were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Shares of Tata Consumer Products, Tata Motors, Bajaj Auto, Nestle India, Britannia, Tata Steel and UltraTech Cements 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 the bears, with 1,990 stocks closing in the green and 1,794 stocks ending in the red.
(You can now subscribe to our subscription. ETMarkets WhatsApp Channel)
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
