Boosted by softening crude and commodities prices combined with a rebound in the global indices, the Nifty ended the week at 16,220.6, up by 3 per cent. As the market opens on Monday, TCS and DMart shares would be under the lens as both announced their results after the market closed.
Here’s how analysts read the market pulse:
Ajit Mishra of
Broking said the last three weeks of the rebound have certainly eased some pressure, but cues are still mixed, which continue to trigger erratic swings in between. Apart from the US recession worries, participants should brace themselves for volatility owing to the earnings, he said.
Deepak Jasani, Head of Retail Research, HDFC Securities, said after forming a short-term bottom at 15,183, the Nifty would need to move above 16,794 for the intermediate trend to turn bullish.
That said, here’s a look at what some key indicators are suggesting for Monday’s action:
US stocks end flat after strong jobs data
Wall Street stocks stumbled to a lackluster close Friday following employment data underscoring the strength of the US labor market but also suggesting more Federal Reserve interest rate hikes ahead.
Major indices see-sawed throughout the day but still notched solid gains for the week with investors weighing optimism that the US economy can withstand higher borrowing costs, against fears the Fed will do too much to choke off growth and cause a downturn.
The Dow Jones Industrial Average slipped less than 0.2 percent to finish at 31,338.48, while the broad-based S&P 500 edged down 0.1 percent to 3,899.38.
The tech-rich Nasdaq Composite Index added 0.1 percent to close at 11,635.31, capping five days of steady gains and posting a 4.6 percent increase for the week..
The US economy added 372,000 new positions in June, nearly 100,000 more than economists forecast, and the unemployment rate held steady at 3.6 percent, the Labor Department reported.
European shares mark strong end to week
European shares ended higher on Friday, recovering after hitting session lows following bumper U.S. jobs data that strengthened the case for another big interest rate hike by the Federal Reserve.
The continent-wide STOXX 600 index closed up 0.5%, ending the week up 2.5%.
Automakers were the biggest sectoral gainers, and provided the biggest boost to Germany’s DAX which closed up 1.3% to lead gains among regional peers.
Tech View
Nifty50 formed a bearish candle on the daily chart that resembled a Hanging Man. The 50-pack index managed to close above the 16,200 level. Analysts said the momentum stays positive as long as the index stays above the 16,170 level.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of
, GSFC, , , and Star Health.
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
None of the stocks showed bearish signs on MACD.
Most active stocks in value terms
RIL (Rs 2,100 crore), M&M (Rs 1,206 crore), L&T (Rs 1,092 crore),
(Rs 1,038 crore), HDFC (Rs 1,005 crore), and (Rs 997 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 the highest trading turnovers in the day.
Most active stocks in volume terms
ONGC (Shares traded: 4.3 crore),
(Shares traded: 2.5 crore), Tata Motors (Shares traded: 2.4 crore), NTPC (Shares traded: 1.5 crore), (Shares traded: 1.5 crore) and (Shares traded: 1.3 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of
, , , ITC, and M&M witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Shares of MSTC Ltd, , and NGL among others witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.
Sentiment meter favours bulls
Overall, market breadth favoured winners as 1,847 stocks ended in the green, while 1,425 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)
