Ahead of the Market: 10 Things That Will Decide Your Stock Trading Monday
We are seeing a correction in small and mid-cap stocks and we expect this to continue as regulators urge AMCs to disclose relevant risks.
Here’s how analysts read the market pulse.
“The overall sentiment remains positive and the index needs to cross 22,400 to trigger a fresh rally. A clear break above 22,400 could push the index towards 22,600. On the downside, support lies at 22,250-22,200,” Rupak De said. . , senior technical analyst at LKP Securities.
“In case an intermediate decline occurs, the 21,900-22,150 area will limit the downside for the index. Amid all the positivity, the price action of the broader index shows indecisiveness, so traders will maintain special caution in the mid-cap and small-cap space. A hard stop must be maintained, said Ajit Mishra, SVP, Technical Research, Religare Broking.
That said, let’s take a look at some key indicators that suggest action on Saturday.
american market
Stocks on Wall Street rose Thursday, with all three major indexes rising and the tech-heavy Nasdaq Composite hitting a new record as investors assessed key U.S. inflation indicators.
european stocks
European stocks started the month higher on Friday, boosted by strength in global stocks after favorable inflation data from the United States, with investors hoping to see a similar decline in euro zone inflation as they look for fresh clues about monetary policy easing.
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“Nifty has closed above the important resistance area of 22,250-300 on a weekly close and we believe that as long as Nifty remains above 22,000, the rally is likely to continue and the next resistance area of 22,450-500 could be tested immediately. Nifty may test the 22,700 level higher,” said Tejas Shah, Technical Research, JM Financial & BlinkX.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on the counters of Suven Pharma, Tata Steel, Rallis India, Hindustan Copper, JSPL, Price Pipes and others.
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 Star Health, Kfin Tech, PNC Infratech, ZEE Entertainment, Lux Ind and Quess Corp. A bearish crossover in the MACD of this counter indicates that it has just begun its downward journey.
Most Active Stocks by Value
Tata Steel (Rs 333 crore), Tata Motors (Rs 176 crore), HDFC Bank (Rs 128 crore), RIL (Rs 107 crore), L&T (Rs 90 crore), SBI (Rs 89 crore) and Hero (Rs 72 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 (Shares traded: 2.1 billion), Tata Motors (Shares traded: 17.8 lakh), SBI (Shares traded: 11.5 lakh), Coal India (Shares traded: 10.85 lakh), ITC (Shares traded: 9.77 lakh), HDFC Bank (Shares traded: 8.95 lakh) and ONGC (Shares traded: 8.64 lakh) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Shares of Tata Steel, Adani Ports, Tata Motors, Tata Motors, Tata Consumer, SBI Life and Adani Enterprises touched new 52-week highs, showing strong buying interest from market participants, indicating bullish sentiment.
Stocks under selling pressure
The stock prices of Polyplex Corp and KRBL hit 52-week lows, signaling bearish sentiment in the market.
Sentiment Meter Favors Bulls
Nifty breadth remained biased in favor of the bulls, with 35 stocks ending in green, 14 ending in red while one stock remained unchanged.
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
