Market Outlook: Before the Market: 10 Things That Will Determine Stock Movements on Monday
Here’s how analysts see market trends:
“Going forward, the market direction will be largely influenced by the upcoming earnings report and the discussion on the federal budget. We will also be closely watching global market trends, especially the strong performance of the US market,” said Ajit Mishra, Vice President, Research, Religare Broking.
“We expect the benchmark Nifty to undergo a period of consolidation in the coming days, potentially easing the stretched parameters. Market sentiment is positive, with sectoral rotation contributing to a strong underlying. Barring any unexpected developments in the global markets, we expect this trend to continue. In the meantime, traders are advised to remain vigilant and lock in profits regularly,” said Osho Krishan, Senior Analyst, Technical & Derivatives, Angel One.
So let’s look at some key indicators that predict Tuesday’s moves.
US market
The S&P 500 and Nasdaq hit new highs on Friday, as official data showed the U.S. labor market was steadily cooling and expectations of a September rate cut were rising. Wall Street’s major indexes closed in the green, with the Nasdaq Composite up 0.9% at 18,352.76 and the S&P 500 up 0.5% at 5,567.19.European stocks
European stocks fell on Friday, led by losses in banking and energy shares, as investors became more cautious ahead of the second round of French parliamentary elections.
The pan-European STOXX 600 index fell 0.2% after hitting a more than a week high earlier in the day. However, the index is up 1% this week.
View Technology
The underlying trend of Nifty continues to be positive. There is a possibility of an upside breakout near 24400-24500 levels in the next few sessions. Nagaraj Shetti of HDFC Securities said immediate support is at 24170 level.
Stocks showing a bullish bias
According to the momentum indicator Moving Average Convergence Divergence (MACD), Rail Vikas Nigam, Vardhman Textiles, BEML, Thermax, Indian Railway Finance and Paytm were trading bullishly.
MACD is known to signal a trend reversal in a traded security or index. When MACD crosses the signal line, it sends a bullish signal indicating that the security price may rise, and vice versa.
Stocks are forecast to be bearish going forward
MACD has shown bearish signals on counters like FACT, Siemens, Alok Industries, Bayer Cropscience, Bajaj Finserv, Can Fin Homes etc. The bearish crossover of MACD on these counters indicates that they have just started their downtrend.
Most Active Stocks in Value Column
RVNL (Rs 713.11 crore), HDFC Bank (Rs 6812 crore), Mazagon Dock Ship (Rs 5468 crore), Indian Railway Fin (Rs 418.3 crore), Cochin Shipyard (Rs 3569 crore), Ircon International (Rs 352.3 crore), BEML (Rs 346.2 crore) were some of the most active stocks on NSE in terms of value. High activity of a counter in terms of value can help identify the counter with the highest turnover for the day.
Most Active Stocks by Trading Volume
YES Bank (Trading Shares: Rs 9.85 billion), Vodafone Idea (Trading Shares: Rs 4.92 billion), Indian Railway Finance (Trading Shares: Rs 2.24 billion), RVNL (Trading Shares: Rs 1.52 billion), Ircon (Trading Shares: Rs 1.16 billion), Suzlon (Trading Shares: Rs 9.6 billion) and HFCL (Trading Shares: Rs 8.10 billion) were some of the most traded stocks during the NSE session.
Stocks showing interest in buying
Shares of RVNL, Vardhman Textiles, Ircon International, Raymond, BEML, CG Power and RailTel Corp hit new 52-week highs, signaling strong buying interest from market participants and signaling bullish sentiment.
Stock selling pressure
No company’s stock hit a 52-week low on Friday.
The sentiment meter is in favor of the bears.
Overall, market breadth was bullish, with 2,162 issues closing higher while 1,772 closed lower.
(disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own and do not necessarily represent the views of the Economic Times.)
