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

In sync with the global markets, domestic benchmark index Nifty also rallied for the second consecutive day on Friday and ended with a gain of 143 points at 15,699. Barring IT, all sectoral indices ended in the green with media, auto and banking gaining the most.

Here’s how analysts read the market pulse:

Prashanth Tapse, Vice President (Research), Mehta Equities Ltd said, “Nifty’s biggest support is seen at 15,363 and below the same one can expect a waterfall of selling. The major hurdle is seen at 15,807 and then all eyes will be on the 16,157 mark. We suspect Bank Nifty to outperform Nifty in next week’s trade.”

Ajit Mishra, VP – Research, Religare Broking, said the market is witnessing consolidation after the sharp decline and awaiting some fresh triggers. “We like auto, FMCG and pharma for long trades while metals and PSU banks may continue to underperform. We recommend maintaining a sector/stock-specific approach and aligning the positions accordingly.”

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

US shares mint big gains

Wall Street’s main indexes soared on Friday in a broad rally as signs of slowing economic growth and a recent pullback in commodity prices tempered expectations for the Federal Reserve’s rate-hike plans. The S&P 500 rose over 3% for its biggest one-day percentage rise since May 2020.

European shares end higher

European stocks jumped 2.6% on Friday, pushing them into positive territory for the week as investors started to scale back central bank tightening bets, spurring inflows into risky assets. The pan-European STOXX 600 index marked its best session in more than three months.

Tech View: Harami candle on weekly chart
Nifty50 formed a small bullish candle on the daily chart. It ended up forming a ‘Harami’ candle on the weekly chart. The weekly pattern is a bullish reversal pattern and one can assume that Nifty50 will see some upsides in the days to come, said independent analyst Manish Shah.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Nazara Tech, MMTC,

, Strides Pharma, Hikal and .

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 Westlife,

, , 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 1,638 crore), (Rs 961 crore), Infosys (Rs 881 crore), (Rs 772 crore), M&M (Rs 770 crore), and (Rs 729 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

ONGC (Shares traded: 2.5 crore), NTPC (Shares traded: 2.2 crore),

(Shares traded: 1.5 crore), (Shares traded: 1.2 crore), ICICI Bank (Shares traded: 1.1 crore) and SBI (Shares traded: 1.1 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest

Shares of M&M witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure

Star Health,

, Dhani ibull Ventures, and GSPL 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 2,391 stocks ended in the green, while 932 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)