Ahead of the market: 10 things that will determine D-Street action on Monday
The blue-chip NSE Nifty 50 index rose 0.92 per cent to 22,327 and the BSE Sensex rose 0.90 per cent to 73,651.
Here’s how analysts read the market pulse.
“Nifty maintained its momentum above the 22,100 level and then rebounded significantly above the 22,500 level. Moreover, a sideways trend was evident on the daily time frame, signaling rising optimism. Nevertheless, the Nifty met initial resistance near the previous swing high of 22,526. As a result, Rupak De of LKP Securities said, “To continue the rally, we need to boldly surpass the 22,525 level,” and added, “In the short term, the 22,200 level may serve as a short-term support level.”
“Nifty has once again formed a bullish candle with a high upper shadow, reflecting selling pressure on the rise. Nifty is up 1.04% for the week, 1.57% for the month and 1.80% for the month,” said Deepak Jasani, head of retail research at HDFC Securities. said. “While 22526 has proven difficult to break on the uptrend, the 21973-22180 band may provide near-term support to the market.”
That said, let’s take a look at some key indicators that suggest action on Monday.
american market
Wall Street set more records Thursday as U.S. stocks ended the month and quarter on recent gains.
The S&P 500 index closed at 5,254.35, up 5.86 points (0.1%) from its high a day ago. This brings gains for the first three months of the year to 10.2%. The only quarter that improved over the past two years was the quarter before.
european stocks
Europe’s STOXX 600 index hit a record high on Thursday, ending a two-quarter streak of gains. Retailer JD Sports reported its best day in more than four years after repeating its annual profit forecast.
The pan-European STOXX 600 index rose 0.2%, ending the week with four up and down sessions ahead of the holiday weekend.
Technical Perspective: Bull Candles
On Thursday, Nifty rose 203 points to form a reasonably bullish candle with a long upper shadow on the daily chart. This reflects selling pressure near record highs around the 22,500 level.
Nifty’s short-term upward trend remains intact along with high volatility. The next rising level to watch is around 22500-22600. Immediate support is at 22250-22200 levels, said Nagaraj Shetti of HDFC Securities.
Stocks with a bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on counters including Aegis Logistics, VIP Industries, Latent View Analytic, Bank of Maharashtra, Suzlon Energy and Grasim Industries.
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 saw bearish signals on the counters of Whirlpool India, SBI Card, Delhivery and Team Lease Service. 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 4,035 crore), RIL (Rs 3,266 crore), Bajaj Finance (Rs 2,591 crore), ICICI Bank (Rs 2,423 crore), Infosys (Rs 1,876 crore), TCS (Rs 1,673 crore) and SBI (Rs 1,629 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 6.2 billion), ITC (traded shares: KRW 2.8 billion), HDFC Bank (traded shares: KRW 2.8 billion), Power Grid (traded shares: KRW 2.6 billion), ICICI Bank (traded shares: KRW 2.2 billion), SBI (Shares traded: $2.2 billion) and NTPC (Shares traded: $200 million) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Shares of Grasim Industries, L&T, Adani Ports, Sun Pharma and Maruti Suzuki touched their new 52-week highs, showing strong buying interest from market participants, indicating bullish sentiment.
Stocks under selling pressure
Shares of Delta Corp, Vinati Organics, Rajesh Imports, Zee Entertainment Enterprises, Lux Industries, Alkyl Amines and Campus Activewear hit 52-week lows, signaling a decline.
Sentiment Meter Favors Bears
Overall, market breadth favored weakness. 2,042 stocks closed in the red and 1,793 stocks closed 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.)
