Ahead of the Market: 10 Things That Will Decide Your Stock Trading Monday
On the day, blue chip Nifty 50 fell 0.8% and S&P BSE Sensex fell 1% led by IT stocks. Nifty 50 rose about 0.6% to early session highs. The benchmark added about 0.25% this week, marking its second consecutive weekly gain.
Here’s how analysts read the market pulse.
“On the daily chart, Nifty has formed a sweeping bearish candlestick pattern, implying weakness. Nifty has broken the downtrend once and then held on to the 20-day moving average, which could lead to further declines. Key support levels lie at 22405 – 22285 The immediate hurdle on the upside is at 22650,” said Jatin Gedia of Sharekhan.
Aditya Gaggar, Director, Progressive Shares said, “Both weekly (DOJI) and daily (Bearish Engulfing) time frames indicate a trend reversal in the index along with negative divergence in RSI. We believe the index is likely to fall and oscillate in the range of 22,160-22,770. do.” That said, here’s a look at some key indicators that suggest action for Monday.
american market
Wall Street surged to a higher close on Friday as a weaker-than-expected jobs report bolstered the Federal Reserve’s case for interest rate cuts while also providing evidence of the resilience of the U.S. economy.
All three major US stocks posted solid gains. The tech-heavy Nasdaq led the way, rising 2%, helped by Apple stock after the iPhone maker announced a record share buyback.
european stocks
European stocks posted their biggest one-day gain since a week ago on Friday, helped by gains in the technology sector, while banks fell below one-week lows after pressure from Societe Generale following its bleak outlook.
The pan-European STOXX 600 index rose 0.4%, led by a 1.6% rise in the technology sector following Apple’s positive quarterly sales outlook in the US.
Tech View: Doji Candle
On Friday, Nifty fell 172 points to form a doji candle on the weekly chart, indicating that indecision is prevalent in the market at the moment.
Technically, Nifty closed below the 22,500 level, which has been acting as a minor support level for the past few days. Tejas Shah of JM Financial & BlinkX said that while this is a negative development, it does not open up any major downside.
Nifty is likely to remain volatile within the 22,200-22,800 range in the near term.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on the counters of Shree Cements, Triveni Turbine, Fortis Healthcare, Cadila Healthcare, Radico Khaitan and Berger Paints.
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 at counters 360 One Wam, Alkyl Amines, Vijaya Diagnostic, Sumitomo Chemical, Orient Refractories and Asahi India Glass. A bearish crossover in the MACD of this counter indicates that it has just begun its downward journey.
Most Active Stocks by Value
Bajaj Finance (Rs 4,870 crore), Kotak Mahindra Bank (Rs 2,512 crore), RIL (Rs 2,477 crore), HDFC Bank (Rs 2,423 crore), Coal India (Rs 2,382 crore), ICICI Bank (Rs 2,277 crore) and SBI ( Rs 1,876 crore) was one of the most active stocks on 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: 6.2 billion), Coal India (traded shares: 5.1 billion), ONGC (traded shares: 2.8 billion), Power Grid (traded shares: 2.7 billion), NTPC (traded shares: 2.7 billion), ITC ( Shares traded: 2.2 billion) and SBI (shares traded: 2.2 billion) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks such as Grasim Industries, ONGC, M&M, Shriram Finance, SBI, Tata Steel and NTPC saw strong buying interest from market participants as they touched new 52-week highs, indicating bullish sentiment.
Stocks under selling pressure
Kotak Bank stock price hit a 52-week low, signaling bearish sentiment in the market.
Sentiment Meter Favors Bears
Overall, market breadth favored weakness with 2,411 stocks ending in the red and 1,421 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.)
