Ahead of the Market: 10 Things That Will Decide Your Stock Trading Monday
The NSE Nifty50 index closed at 23,290 points, up 2.05 per cent, while the S&P BSE Sensex closed at 76,693 points, up 2.16 per cent.
The Nifty is up 3.4 per cent this week and the Sensex is up 3.7 per cent, clawing back all losses incurred on Tuesday after Prime Minister Narendra Modi’s allies won the general election by a surprisingly narrow majority margin.
Here’s how analysts analyze the pulse of the market.
“On the daily chart, we can see that the Nifty has moved slightly higher after the sharp decline on Tuesday earlier this week. It has recovered all the lost ground and is within touching distance of the previous high of 23338. The V-shaped recovery has created a favorable structure for the bulls. On the upside, the psychological level of 23500 is likely to lead to some profit booking at higher levels,” Jatin said. Gedia of Sharekhan.
Rupak De of LKP Securities said, “Going forward, the market will remain bearish unless it breaks 23000. On the higher side, the index may move towards 23500-23600. On the lower side, profit booking may occur.” It’s below 23000.” That said, let’s take a look at what some key indicators suggest for Monday’s action.
american market
Wall Street stocks were mostly flat in choppy trading on Friday after stronger-than-expected U.S. jobs data signaled a strong economy but sparked concerns the Federal Reserve may wait longer to cut interest rates than many investors had hoped. According to a Labor Department report, there were about 272,000 jobs in May, much higher than analysts’ expectations of 185,000. The unemployment rate soared to 4%.
The benchmark S&P 500 fell immediately after the report and U.S. Treasury yields rose as traders scaled back bets on a September interest rate cut. But the index recovered and briefly hit an intraday record as investors took note of data pointing to underlying economic health.
european stocks
European stocks fell on Friday, led by interest rate-sensitive sectors such as real estate and utilities, as a stronger-than-expected U.S. jobs report raised concerns that the Federal Reserve may not cut interest rates anytime soon.
The continent-wide STOXX 600 index closed 0.2% lower but posted its first weekly gain in three weeks.
Tech View: Long candle
Nifty finished Friday’s session up 469 points, forming a long bullish candle at 23,290 points on the daily chart. The near-term trend in Nifty continues to be positive as the index ended near its all-time high.
There is a possibility that the market may decline slightly from the highs in the near term after reaching overhead resistance around the 23300-23400 level, which could be a buying opportunity. Nagaraj Shetti of HDFC Securities said immediate support is at 22900 level.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on counters including Avanti Feeds, Mastek, L&T Finance, Ramco Cement, Brigade Enterprises and Wipro.
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 the counters of GSK Pharma, Rail Vikas Nigam (RVNL) and Vijaya Diagnostic Center. A bearish crossover in the MACD of this counter indicates that it has just begun its downward journey.
Most Active Stocks by Value
Infosys (Rs 3,667 crore), HDFC Bank (Rs 2,886 crore), RIL (Rs 2,707 crore), Bajaj Finance (Rs 2,136 crore), L&T (Rs 2,066 crore), SBI (Rs 2,063 crore) and ICICI Bank (Rs 1,928). 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: 5.4 billion), Power Grid (shares traded: 3.8 billion), Wipro (shares traded: 3.6 billion), ITC (shares traded: 2.8 billion), SBI (shares traded: 2.5 billion), Infosys (shares traded: 2.5 billion) ) and NTPC (shares traded: $2.3 billion) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks such as M&M, Bharti Airtel, Tata Steel, Divi’s Labs, Bajaj Auto, etc. touched 52-week highs, showing strong buying interest from market participants, indicating an optimistic mood.
Stocks under selling pressure
No major stocks hit 52-week lows on Friday.
Sentiment Meter Favors Bulls
Overall, market breadth favored the bulls. 2,858 stocks closed in the green and 1,001 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.)
