Ahead of the market: 10 things that will determine D-Street action on Monday
The blue-chip NSE Nifty 50 closed 0.44 per cent higher at 22,055 points, while the S&P BSE Sensex closed 0.36 per cent higher at 72,664 points.
Here’s how analysts read the market pulse.
“On the daily chart, the index has broken in the rising channel, indicating rising bearish sentiment. The trend is likely to remain bearish in the near term and resistance is recorded at 22,200,” said Rupak, senior technical analyst, LKP, as long as Nifty remains below this level. “A sell-on-the-bounce strategy could continue to position the lower support level at 21,950, with a decisive decline below this level potentially triggering market panic,” De said.
“To see any further direction for Nifty in today’s trading session, we have to wait for the high (22,131) or low (21,950) of the daily candle on Friday,” said Tejas Shah, technical researcher at JM Financial & BlinkX. Currently, the indices are hovering around 21,950-22,000 and 21,700-800 levels, while the immediate resistance area for Nifty is 22,200-250 level and the next resistance area is 22,500 mark. Overall, the trend remains negative.
That said, let’s take a look at some key indicators that suggest action on Monday.
american market
U.S. stocks rose slightly on Friday and all three indexes posted another weekly gain as investors analyzed comments from Federal Reserve officials and anticipated important inflation data next week. The S&P 500 and Dow rose slightly and the Nasdaq closed essentially unchanged. All three indexes rose for the week, with the blue-chip Dow posting its biggest Friday-to-Friday gain since mid-December. The Dow Jones Industrial Average rose 0.32%, the S&P 500 fell 0.16% and the Nasdaq Composite fell 0.03%.
european stocks
The pan-European STOXX 600 index closed 0.7% higher, with major German and French economic indices hitting record highs.
European stocks resumed record gains after investors took a short break in April, with the STOXX 600 up 3% for the week.
Technical View: Internal Bar Candle Holders
On Friday, Nifty rose by 98 points and formed an Inside Bar candlestick pattern on the daily chart. A decline appears possible if the headline index holds at Thursday’s low of 21,932.
Stocks with a bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading, especially on the counters of Endurance Technologies, Capri Global, BPCL, V-Guard, Tata Communications and Signatureglobal (India).
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 Finolex Cables, Varun Beverages, Colgate-Palmolive, NMDC, Triveni Turbine and Elgi Equipments. 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 1,965 crore), Kotak Bank (Rs 1,922 crore), SBI (Rs 1,689 crore), RIL (Rs 1,471 crore), Tata Motors (Rs 1,394 crore), BPCL (Rs 1,355 crore) and L&T (Rs 1,348 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 (shares traded: 3.1 billion), BPCL (shares traded: 2.2 billion), SBI (shares traded: 200 million), ITC (shares traded: 1.4 billion), HDFC Bank (shares traded: 1.3 billion), Tata Motors ( Shares traded: 1.3 crore) and Power Grid (shares traded: 1.2 crore) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Shares of Jupiter Wagons, Hindustan Zinc, Vijaya Diagnostic, Honeywell, Polycab India, Astral and V-Guard touched new 52-week highs, showing strong buying interest from market participants, indicating bullish sentiment.
Stocks under selling pressure
Shares of LTIMindtree, Berger Paints, Syngene International, Dalmia Bharat, Ramco Cements, Tata Technologies and Zee Entertainment Enterprises hit 52-week lows, indicating bearish sentiment in the market.
Sentiment Meter Favors Bulls
Overall, market breadth favored strength with 2,142 stocks closing in the green and 1,678 stocks ending 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.)
