Ahead of the market: 10 things that will determine D-Street action on Monday
Here’s how analysts read the market pulse.
“Nifty has fallen as it has experienced a consolidation breakdown in the lower period. There is some negative sentiment in the near term. However, support is observed at 22,500 as of the close. Sustained trade above 22,500 as long as it remains above 22,500 as of the close. could potentially push the index back to 22,650-22,700, while a drop below 22,500 could correct the decline by 200-250 points.” This is Rupak De of LKP Securities.
JM Financial & BlinkX technical researcher Tejas Shah said, “The candlestick (Long-legged Doji – Bearish) pattern formed on the weekly chart is not very encouraging, so we should wait for the high (22,776).” Alternatively, the lower of the weekly candle (22,503) will be used for further direction for Nifty in Monday’s trading session.”
“Overall, it will be interesting to see whether or not there will be a follow-on sale today,” he added.
That said, let’s take a look at some key indicators that suggest action on Monday.
american market
U.S. stocks fell on Friday after a mixed start to the earnings reporting season. Concerns about a possible escalation in tensions in the Middle East have rattled financial markets, forcing investors to look for safer places for their money. The S&P 500 fell 1.5%, ending its worst week since October, when a massive rally began on Wall Street. The Dow Jones Industrial Average fell 475 points (1.2%), and the Nasdaq Composite Index fell 1.6% from the previous day’s high.
european stocks
European stocks were flat after hitting a one-week high in early trading as heightened tensions in the Middle East eroded some of the continued optimism over hints that a rate cut by the European Central Bank (ECB) is imminent. The pan-European STOXX 600 index ended the session. It rose 0.1% after rising as much as 1.2% during the day, but recorded a decline for the second week in a row.
Tech View: Doji Candle
Nifty on Friday fell 234 points to form a weekly Doji candle. On the daily chart, the index closed below the lows of the previous three sessions, indicating weakness. The index is in the process of reversing the gains witnessed at 22,710-22,776. The next important support level is at 22,370. On the upside, 22,620 – 22,650 will act as an immediate hurdle from a near-term perspective, said Jatin Gedia of Sharekhan.
Stocks with a bullish bias
Momentum indicator moving average convergence divergence (MACD) showed bullish trading on counters such as Archean Chemical, Vinati Organics, Tata Consumer, Bata India, TCS and Medplus Health Services. MACD is known to indicate a trend reversal in a traded security or trade. jisoo. 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 Natco Pharma, Ingersoll-Rand (India), Granules India, MRPL, Union Bank of India and Tata Communications. 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 1,518 crore), RIL (Rs 2,934 crore), Axis Bank (Rs 1,073 crore), Infosys (Rs 1,484 crore), TCS (Rs 4,001 crore), ICICI Bank (Rs 1,104 crore) and Sun Pharma (Rs 1,104 crore). crore) and 1,540 crore) were among 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: KRW 5.5 billion), NTPC (Shares traded: KRW 3.1 billion), ONGC (Shares traded: KRW 2.1 billion), HDFC Bank (Shares traded: KRW 2.1 billion), ITC (Shares traded: KRW 1.8 billion) ), Axis Bank (shares traded: $1.8 billion), Power Grid (shares traded: $1.7 billion), etc. were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks such as Hindustan Zinc, Quess Corp, Nuvama Wealth Management, KEI Industries, Exide Industries, Aegis Logistics and IRCTC touched new 52-week highs, showing strong buying interest from market participants, indicating bullish sentiment.
Stocks under selling pressure
Shares of HUL and Dabur India hit 52-week lows, signaling a decline.
Sentiment Meter Favors Bears
Overall, market breadth favored weakness with 2,373 stocks ending in the red and 1,466 stocks ending 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.)
