Ahead of the market: 10 things that will determine D-Street action on Monday
Here’s how analysts analyze the pulse of the market.
“Going forward, the benchmark indices are likely to consolidate following the recent uptrend and support is expected in the 23,700-23,900 range in case of a decline. Banking stocks are currently consolidating while sectors like IT, energy and FMCG are driving the indices higher. Similar market dynamics are expected in the coming sessions and traders should plan their strategies accordingly,” said Ajit Mishra, Vice President, Research, Religare Broking.
“The undercurrents are positive and we do not see any significant risks to the domestic market in the near term. All eyes will be on the federal budget proposal, which will dominate the market in the medium term.” said Vinod Nair, head of research at Geojit Financial Services.
So let’s take a look at the key indicators that predict Monday’s moves.
US market:
U.S. stocks ended weaker on Friday after an early rally fizzled as investors digested inline inflation data and weighed political uncertainty following the U.S. presidential debate. The Dow Jones Industrial Average fell 41.12 points, or 0.11%, to 39,122.94. The S&P 500 Index lost 22.57 points, or 0.41%, to 5,460.30, and the Nasdaq Composite Index lost 126.08 points, or 0.71%, to 17,732.60.
European stocks:
European stocks gave up early gains and closed lower on Friday after shares in beauty giant L’Oréal fell, while benchmark indexes posted weekly, monthly and quarterly losses amid political uncertainty in France.
The pan-European STOXX 600 index fell 0.2%, extending its losing streak to its fourth straight session.
Technical view:
Nifty, which has been on a sharp rise, is currently facing a hurdle at the resistance level of 24,000-24,100. Any decline from here is likely to be a buying opportunity. Nagaraj Shetti of HDFC Securities said immediate support is at 23,800.
Stocks with a bullish bias:
According to the Moving Average Convergence Divergence (MACD), a momentum indicator, bullish trading was observed in stocks such as CDSL, IGL, GE Shipping, Lupin, Aegis Logistics, and Tata Motors.
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 that signal weakness ahead:
MACD has shown bearish signals on counters like EID Parry AU Small Finance Bank, Phoenix Mills, Safari Industries and Latent View Analytics, India Energy Exchange. Bearish crossovers of MACD on these counters indicate that the downtrend has just begun.
Most Active Stocks by Value:
Polycab India (Rs 5,928 crore), CDSL (Rs 4,945 crore), RIL (Rs 4,518 crore), Bharti Airtel (Rs 4,283 crore), Vodafone Idea (Rs 3,658 crore), Indus Towers (Rs 2,386 crore) and Mazagon Dock Ship ( Rs 2,514 crore) was 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.
The most active stocks by trading volume:
Vodafone Idea (Shares traded: $210 million), YES Bank (Shares traded: $1.27 billion), PNB (Shares traded: $121 billion), HFCL (Shares traded: $760 million) ), Indus Towers (Shares traded: ₹750 crore), SAIL (Shares traded: ₹7.2 crore) and India Cements (Shares traded: ₹5.8 crore) were among the most traded stocks in the NSE session.
Stocks showing interest in buying:
Shares of CDSL, Chola Fin Holdings, Bombay Burmah, Praj Industries, Mahanagar Gas, Kalyan Jewelers and 360 One Wam witnessed strong buying interest from market participants as they touched new 52-week highs, indicating bullish sentiment.
Stocks under selling pressure:
No company’s stock hit a 52-week low on Friday.
The sentiment meter favors bears.
Overall, market breadth favored the bulls. 2,133 stocks closed in the green and 1,768 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.)
