Ahead of the market: 10 things that will determine D-Street action on Monday
NSE Nifty 50 and BSE Sensex rose 0.69% and 0.51% respectively this week, marking their fourth consecutive week of gains, their highest in three months. The benchmarks are up about 3% each in four weeks.
Here’s how analysts read the market pulse.
“From a technical standpoint, the index remains bullish and has a good bearish trend against the bulls. However, the range is narrowing as we head into uncharted territory, which could be a signal of caution for the period ahead. For now, , 22,250-22,200 is likely to be considered intermediate support, followed by strong support at 22,150, and finally 22,000, which is a psychological indicator from a broader perspective. At higher levels, it is difficult to find resilience in uncharted territory. .22,650 can be seen as a likely target for Nifty next week,” said Osho Krishan of Angel One.
Tejas Shah, JM Financial & BlinkX said, “Nifty has tested the upper band of 22,450-22,500, which is the target area. 22,250 and 22,000 are important supports and we expect to buy all the dips until they remain flat, with an eventual move towards 23,000-23,100. You should. “
That said, let’s take a look at some key indicators that suggest action on Monday.
american market
The S&P 500 and Nasdaq closed lower after hitting record highs during Friday’s session, a reversal in chip stocks after strong gains and a mixed labor market report that showed more new jobs than expected along with rising unemployment. Artificial intelligence chip darling Nvidia fell 5.6%, snapping a six-session winning streak. It rose more than 5% in early trading. The Dow Jones Industrial Average closed at 38,722, down 0.18%, the S&P 500 closed at 5,123, down 0.65%, and the Nasdaq Composite closed at 16,085.11, down 1.16%.
european stocks
Europe’s major stock indices were flat on Friday but posted strong gains for the week, with record highs in German and French shares. The pan-European STOXX 600 index closed flat, reaching an all-time high and rising for the seventh straight week.
France’s benchmark CAC 40 hit an all-time high on Friday, while Germany’s DAX hit an all-time high in the previous session.
Tech View: Doji Candle
On Thursday, Nifty rose 19.5 points while remaining below the psychological 22,500 mark, forming a Doji candle on the daily chart and significantly increasing the position of call writers at the 22,500 strike price.
22,390 – A decline towards 22,340 should be used as a buying opportunity as the key hourly moving averages are in this range and could attract buying interest. On the positive side, 22,570 – 22,600 will act as an immediate hurdle zone in the near term, said Jatin Gedia of Sharekhan.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on the counters of Concord Biotech, Century Textiles, Infibeam Avenues, Alok Industries, Zee Entertainment Enterprises and Chambal Fertilizers.
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 Triveni Turbine, NCC, Piramal Enterprises, Allcargo Logistics, KEC International and IGL. 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 3,566 crore), M&M (Rs 3,494 crore), Tata Steel (Rs 1,954 crore), Tata Motors (Rs 1,745 crore), RIL (Rs 1,236 crore), SBI (Rs 1,222 crore) and TCS (Rs 1,102 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 (traded shares: KRW 12.5 billion), HDFC Bank (traded shares: KRW 2.4 billion), ITC (traded shares: KRW 2.3 billion), M&M (traded shares: KRW 1.8 billion), Tata Motors (traded shares: KRW 1.7 billion), SBI ( Shares traded: $1.5 billion), Power Grid (stocks traded: $1.5 billion), etc. were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks of Tata Steel, Tata Consumer Products, Bajaj Auto, SBI, Bharti Airtel, Sun Pharma and Power Grid witnessed strong buying interest from market participants as they touched new 52-week highs, indicating bullish sentiment.
Stocks under selling pressure
Shares of KRBL and Orient Refractories hit 52-week lows, signaling bearish sentiment in the market.
Sentiment Meter Favors Bulls
Overall, market breadth favored the bulls. 2,077 stocks closed in the green and 1,732 stocks closed in the red.
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own. They do not represent the views of The Economic Times.)
