Ahead of the market: 10 things that will determine D-Street action on Monday
Both the NSE Nifty 50 index and the S&P BSE Sensex are up about 1.2% each this week, maintaining momentum even as expectations of an early interest rate cut in the US fade.
Here’s how analysts read the market pulse.
“I suggest maintaining a positive yet cautious stance as Nifty is set to retest its all-time highs. Needless to say, sustainability above 22,150 is needed to end the consolidation and march towards the 22,500+ zone. Otherwise, monetization will resume. Traders can,” said Ajit Mishra of Religare Broking. “Banking indices will be closely watched as other indices continue to play a support role on a cyclical basis. Moreover, the performance of global indices, particularly US indices, will remain under watch,” he said.
“Nifty is positioned near the important overhead resistance of 22,125 level, but there are still no signs of a significant reversal pattern forming from the highs. Further upside is possible,” said Nagaraj Shetti, senior technical research analyst at HDFC Securities. It is heading towards a new all-time high around the 22,150 level before selling pressure appears at the new high. Immediate support is at the 21,920 level.”
That said, let’s take a look at some key indicators that suggest action on Monday.american market
Stocks fell Friday, sending Wall Street to its second rare loss week in the past 16 days.
The S&P 500 index fell 0.5% from its all-time high set a day earlier. The Dow Jones Industrial Average fell 145 points, or 0.4%, and the Nasdaq Composite Index fell 0.8%.
european stocks
European stocks ended a data-packed week on a positive note, with stellar earnings updates and expectations that the European Central Bank’s (ECB) imminent interest rate cut will increase investor appetite for risky assets.
The pan-European STOXX 600 index rose 0.6% to a two-year high, led by miners who rose 2.5% this week to a two-week high.
Tech View: Spinning Top Candle
On Friday, Nifty closed 139 points above the 22,000 mark, forming a spinning candle on the daily chart and signaling indecision. The index is likely to test its all-time high next week.
Short-term moving averages are below price action and should continue to support the index whenever it moves lower. 22,000 is immediate support, with the larger support area being 21,800-850. Rahul Sharma of BlinkX said that on the higher side, the important resistance area is 21,125-150 level (ATH level).
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on counters including Natco Pharma, M&M, Suven Pharma, City Union Bank, Bata India and Jubilant Pharmova.
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 across counters KFin Technologies, Info Edge, Tata Motors, Nestle India, Cipla and M&M Financial. 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 2,281 crore), SBI (Rs 2,088 crore), BPCL (Rs 1,866 crore), ITC (Rs 1,514 crore), RIL (Rs 1,431 crore), M&M (Rs 1,312 crore) and Tata Motors (Rs 1,207 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
ITC (Shares traded: KRW 3.7 billion), BPCL (Shares traded: KRW 2.7 billion), SBI (Shares traded: KRW 2.7 billion), ONGC (Shares traded: KRW 2.7 billion), Power Grid (Shares traded: KRW 2.5 billion) , Tata Steel (stocks traded: 2.2 billion) and NTPC (stocks traded: 200 million) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks such as M&M, SBI Life, Adani Ports, Maruti Suzuki, Bajaj Auto, BPCL and NTPC touched new 52-week highs, showing strong buying interest from market participants, indicating bullish sentiment.
Stocks under selling pressure
Polyplex Corporation’s stock price hit a 52-week low, signaling bearish sentiment in the market.
Sentiment Meter Favors Bulls
Overall, market breadth favored the bulls. 2,194 stocks closed in the green and 1,659 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.)
(You can now subscribe to ETMarkets WhatsApp channel)
