Ahead of the market: 10 things that will determine D-Street action on Monday
The NSE Nifty 50 and S&P BSE Sensex rose around 3.5%, recording their best week since July 2022. The blue chip index rose for the sixth week in a row.
Here’s how analysts read the market pulse.
“Going forward, 21,000 is likely to act as an important level for Nifty as call writers have built maximum positions at that strike price. A resumption of the current uptrend can be seen above 21,000 and is likely to touch 21,550.” of LKP Securities “At lower levels, put writers have built significant positions at 20,900 and 20,800, below which profit booking may increase,” said Rupak De, senior technical analyst.
Deepak Jasani, Head of Retail Research, HDFC Securities, said, “Nifty has formed a near-high bottom pattern on the daily chart on December 8. Considering the recent sharp rise, this pattern may herald a reversal if it breaks the low on Friday. ” Now, Nifty may remain in the 20,850-21,050 band in the near term.”
That said, let’s take a look at some key indicators that suggest action on Monday.
american market
Wall Street stocks ended the week on a positive note Friday, helped by solid labor and consumer data, and the dollar also rose. The Dow Jones Industrial Average rose 0.4% for the day to close at 36,247.87, marking a weekly gain.
The S&P 500 index rose 0.4% to 4,604.37, and the tech-heavy Nasdaq composite index rose 0.5% to 14,403.97.european stocks
European stocks faltered on Thursday after recent strong gains, while data from Germany added to concerns that the industrial sector will continue to weigh on the euro zone’s largest economy.
The pan-European STOXX 600 index fell 0.3% after hitting a more than four-month high on Wednesday, while Germany’s DAX index fell 0.2% after hitting a record high in the previous session.
Tech View: Small Candles
A small candle with an upper and lower shadow has formed on the daily chart. Technically, this pattern means that a high-wave candle pattern has formed, and the market movement reflects high volatility at new highs.
“The near-term uptrend status in the market remains intact and the current consolidation or minor weakness could eventually lead to Nifty resuming its short-term sharp uptrend. The next overhead resistance to watch is around 21550 and the immediate support is around 20850 level. said Nagaraj Shetti of HDFC Securities.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on counters, especially Raymond, Vinati Organics, IndusInd Bank, Oracle, Tata Communications and Indian Bank.
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 Apollo Hospitals, Coforge, Zensar Tech, Triveni Turbine, Sterlite Technologies and ICICI Lombard. A bearish crossover appears on the MACD of this counter, indicating that the downtrend has just begun.
Most Active Stocks by Value
HDFC Bank (Rs 2,780 crore), Adani Enterprises (Rs 1,975 crore), ICICI Bank (Rs 1,618 crore), RIL (Rs 1,253 crore), Adani Ports (Rs 1,248 crore), SBI (Rs 1,082 crore) and Infosys (Rs 1,082 crore) (crore) 936 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 (Shares traded: KRW 3.4 billion), Power Grid (Shares traded: KRW 2.2 billion), NTPC (Shares traded: KRW 200 million), ITC (Shares traded: KRW 1.8 billion), SBI (Shares traded: KRW 1.7 billion ), HDFC Bank (Shares traded: $1.6 billion), ICICI Bank (Shares traded: $1.6 billion), etc. were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks such as HCL Tech, LTIMindtree, JSW Steel, Titan Company, Axis Bank, ICICI Bank and Hindalco, etc. 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 new 52-week lows on Thursday.
Sentiment Meter Favors Bears
Overall, market breadth favored weakness. 2,077 stocks closed in the red and 1,679 stocks closed in the green.
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own. They do not represent the views of The Economic Times.)
