The benchmark NSE Nifty 50 rose 0.33% to 25,235.9, while the S&P BSE Sensex gained 0.28% to 82,365.7. They added 1.6% this week and nearly 1% in August, their third straight weekly and monthly gains.
Here’s how analysts read the pulse of the market:
“Bulls are in full control of the markets at present and are using every dip to build long positions. Support for Nifty is now seen at 25,175-200 and 25,000-24,950 levels. On the upside, there is immediate resistance for Nifty. 25,250 level and the next critical resistance zone is at 25,450-500 level, overall, further follow-up strength can be expected in today’s trading session,” said Tejas Shah, Technical Research, JM Financial & BlinkX.
Rupak De of LKP Securities said, “As long as the index remains above 25,000, market strength is likely to remain. A fall below this level could trigger a significant correction. On the upside, the current optimism could lead the index to 25,500. Near term .”
That said, here’s a look at what some key indicators suggest for Monday’s action:
US market
The Nasdaq and S&P 500 ended higher on Friday, with Tesla and Amazon boosting expectations after fresh US economic data suggested the Federal Reserve would modestly cut interest rates in September.
US consumer spending rose solidly in July, suggesting the economy remains strong while prices rose modestly.
The S&P 500 ended up 1.00% at 5,647.60 points, while the Nasdaq Composite gained 1.11% at 17,710.73. The Dow Jones Industrial Average rose 0.52% to 41,549.91.
European stocks
European shares ended a tumultuous month on a bright note, rising to an all-time high on Friday after a significant drop in eurozone inflation bolstered market expectations for an interest rate cut in September.
The pan-European STOXX 600 index rose 0.1% to close above 525 points for the first time after touching an intraday record high of 526.66 points. The index rose 1.2% in August, its second straight month of gains.
Spain’s IBEX 35 rose 0.4% after retail sales data showed a 1% rise in July, while Germany’s DAX closed flat after data showed unemployment rose less than expected.
Tech View: Circular bottom pattern
The Nifty ended the Friday session with a gain of 84 points and formed a rounding bottom pattern showing strength on the daily chart. Based on this breakout, the index may move towards the 25,500 level in the short term. If the index sustains above 25,500, the Nifty may move towards the 26,000-26,250 level, which is the target of the rounding bottom pattern, said Hrishikesh Yedve, Asit C. Mehta Investment Intermediates said.
“On the downside, the 9-day exponential moving average (DEMA), located near 24,950, will act as an immediate support for the Nifty in the short term. A ‘buy on dips’ strategy should be adopted as long as the index remains above 24,950,” he said.
Stocks showing a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on counters of Paytm, Safari Industries, Praj Industries, Prestige Estates, RVNL and Sapphire Foods.
Stocks signal further weakness
MACD showed bearish signals on counters of Aster DM Healthcare, Bharat Forge, Inox Wind, Caffeine Technologies, Aurobindo Pharma and Aegis Logistics. A bearish crossover on the MACD on these counters indicates that they have just started their downward journey.
Most active stocks by value
HDFC Bank (Rs 36,481 crore), RVNL (Rs 7,350 crore), RIL (Rs 6,298 crore), Dixon Technologies (Rs 6,101 crore), Bharti Airtel (Rs 6,011 crore), Oil India (Rs 5,913 crore) ), and Prestige Estate (Rs. 5,913 crore) at Rs. 4,132 crore) was one of the most active stocks on the NSE in terms of value. High activity on a counter in terms of value can help identify counters with the highest trading turnover in a day.
Most active stocks in terms of volume
HDFC Bank (Shares traded: 22.2 crore), RVNL (Shares traded: 12.2 crore), Shree Renuka Sugar (Shares traded: 11.3 crore), Yes Bank (Shares traded: 11.1 crore), Bandhan Bank (Shares traded: 10.9 crore), Oil India (shares traded: 7.9 crore), and Suzlon Energy (shares traded: 5.4 crore) were the other most traded stocks in the session on NSE.
Stocks show interest in buying
Shares of Triveni Engineering & Industries, Sundaram Finance, Radico Khaitan, Godfrey Phillips, GSPL, Safari Industries and KEC International saw strong buying interest from market participants as they scaled their fresh 52-week highs, indicating bullish sentiment. is
Selling pressure is seen in stocks
No major stocks touched their 52-week lows on Friday.
The sentiment meter favors the bulls
Overall, market breadth favored the bulls as 2,157 stocks ended in the green, while 1,784 names settled in the red.
(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)
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