Ahead of Market: 10 things that will decide stock action on Monday

Tracking negative global cues, domestic equities markets closed flat with a negative bias on Friday. In the last week, BSE Sensex surged 1.13 per cent to settle at 58,191, while Nifty50 closed at 17,314, up 1.29 per cent.

Rupak De, Senior Technical Analyst at

said that the index closed above 50-EMA, confirming the ongoing positive trend. Going forward, the trend is expected to remain positive as long as the Nifty sustains above 17,300. On the higher end, 17,600-17,700 zone may act as resistance, whereas, on the lower end, support is visible at 17,200.

Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, “the underlying uptrend of Nifty50 remains intact. The consolidation movement may be extended in the early part of next week and the market could eventually witness sharp upside bounce from the lows by next week. A decisive upside breakout of the hurdle of 17,450 is likely to pull Nifty towards another important resistance of 18,000-18,100 levels. Immediate support is placed at 17,200 levels.”

That said, here’s a look at what some key indicators are suggesting for Monday’s action:

US market
US stocks ended lower on Friday after a stronger-than-expected jobs report. The Dow Jones Industrial Average fell 630 points or 2.11%, while the S&P 500 fell 2.8% and the Nasdaq Composite plunged 3.8% in value as investors bet that the Fed’s inflation fight will continue apace.

European shares
European stocks also fell sharply on Friday after strong growth in US jobs, reinforcing the case for the Federal Reserve to aggressively raise interest rates in its quest to seal higher inflation. The continent-wide STOXX 600 index declined 1.2%, logging a third consecutive session of declines.

Tech View
“Having declined from the hurdle of 17,425 levels on Thursday, Nifty forming such a high wave pattern indicates minimal negative impact on the market post weakness from the hurdle. Hence, this is also signaling that the market could retest the above said resistance in the short term and eventually the resistance could be broken on the upside,” said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of

, FACT, Hemisphere Properties, Raymond, GE Shipping and MMTC.

The MACD is known for signaling trend reversals in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa.

Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of

, , and . Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms

(Rs 1,438 crore), HDFC Bank (Rs 949 crore), RIL (Rs 865 crore), ICICI Bank (Rs 852 crore), (Rs 727 crore), (Rs 631 crore) and TCS (Rs 596 crore) were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.

Most active stocks in volume terms
Tata Steel (Shares traded: 3.6 crore), Coal India (Shares traded: 1.4 crore), ONGC (Shares traded: 1.3 crore), SBI (Shares traded: 1.1 crore), Power Grid (Shares traded: 1.07 crore), Tata Motors (Shares traded: 1.06 crore) and ITC (Shares traded: 1.05 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of

, , Rites, Tejas Network, , and witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure
Shares of

witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured winners as 1,862 stocks ended in the green, while 1,576 names settled with cuts.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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