Bullish Momentum: Ahead of the Market: 10 Things That Will Decide Your Stock Trading Monday
On the day, the NSE Nifty 50 index rose 1.14% to close at 21,894 points, while the S&P BSE Sensex rose 1.18% to close at 72,568 points. It’s up about 0.8% for the week.
Meanwhile, the IT index rose 5.14%, reaching the highest since October 8, 2020, and the highest in 21 months.
Here’s how analysts read the market pulse.
“The Nifty has shown significant strength, securing a notable breakout on the daily chart as it cleared the key resistance level of 21,800. This bullish move has positioned the index towards potential near-term targets of 22,000 and 22,200. Traders should “It has come down to support levels,” said Kunal Shah, senior technical and derivatives analyst at LKP Securities.
Nagaraj Shetti, senior technical research analyst at HDFC Securities, said, “On the weekly chart, Nifty has formed a reasonably bullish candle with a long lower shadow. Last week’s bearish Doji pattern implications were negated this week as Nifty closed above the high. Last week at 21834 “The next upward level should be watched around 22200. Immediate support is 21750.”
That said, let’s take a look at some key indicators that suggest action on Monday.
US market:
U.S. stocks closed little changed on Friday after swinging between modest gains and losses as mixed earnings from banks offset news of lower-than-expected inflation that fueled expectations of a Federal Reserve interest rate cut.
For the week, the Dow rose 0.34%, the S&P 500 rose 1.84%, and the Nasdaq rose 3.09%. The S&P’s gain was its biggest weekly gain since mid-December, and the Nasdaq’s gain was its biggest since early November.
European Stocks:
European stocks closed higher on Friday as bond yields fell as weak U.S. economic data sparked expectations of an early interest rate cut from the Federal Reserve and other major central banks, while Airbus shares rose after the company reported record annual jet orders.
The pan-European STOXX 600 index rose 0.8%, ending a three-day losing streak and its best daily performance of the year, but ended the week flat.
Technical view:
On Friday, Nifty rose 247 points, clearly breaking the 21,500-21,850 range.
As long as the index trades above 21750, the breakout pattern is likely to continue. Likewise, the market may rise to 22100-22200. Conversely, traders below 21750 may prefer to exit a long trading position. Below that, the index may retest the 21650-21575 levels, said Amol Athawale of Kotak Securities.
Stocks with a bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on counters including Firstsource Solutions, Oracle Financial Services Software, Oracle Financial Services Software, IRFC, Coforge, Union Bank of India and Birlasoft.
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 GSPL, Pfizer, Grindwell Norton, Route Mobile, Tejas Networks and Godrej Consumer Products. A bearish crossover in the MACD of this counter indicates that it has just begun its downward journey.
Most Active Stocks by Value
Infosys (Rs 4,274 crore), TCS (Rs 2,639 crore), RIL (Rs 2,048 crore), HDFC Bank (Rs 1,626 crore), ICICI Bank (Rs 1,229 crore), SBI (Rs 1,048 crore) and HCL Tech (Rs 895 crore). 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
ONGC (Shares traded: KRW 3.9 billion), Tata Steel (Shares traded: KRW 3.2 billion), Infosys (Shares traded: KRW 2.6 billion), Wipro (Shares traded: KRW 1.8 billion), SBI (Shares traded: KRW 1.6 billion) , NTPC (Shares traded: $1.2 billion), ICICI Bank (Shares traded: $1.2 billion), etc. were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks of ONGC, HCL Tech, Tata Consumer Products, Bharti Airtel, IndusInd Bank, Hero MotoCorp and Tata Motors touched new 52-week highs, showing strong buying interest from market participants, indicating bullish sentiment.
Stocks under selling pressure
No major stock hit a new 52-week low on Friday.
Sentiment Meter Favors Bulls
Overall, market breadth favored the bulls. 2,066 stocks closed in the green and 1,787 stocks closed in the red.
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
