Ahead of the market: 10 things that will determine D-Street action on Monday

Domestic benchmark equity indices, Sensex and Nifty 50, closed marginally lower on Friday, weighed down by FMCG and energy stocks. However, they recorded their best weekly performance since late June on the prospect of a rate cut by the Federal Reserve.

The Nifty 50 closed down 0.13% at 25,356, while the Sensex fell 0.09% at 82,890. Both indexes rose nearly 2% for the week, marking their best gains since late June.

Here’s how analysts pulse the market:

“Faced with resistance at the rising trendline on the daily chart, the index remained range-bound throughout the day. On the lower time frame, the RSI has entered a bearish crossover, indicating a possible reversal in bearish momentum. In the near term, the trend is on the upside. can stay

Jatin Gedia of Sharekhan by BNP Paribas said, “On the daily chart, we can observe that after a sharp upward move in the previous trading session, the Nifty has consolidated. The price action is in line with expectations and may continue in the next few quarters. Trading The undertone of the session remains bullish and support between 25,500 and 25,700 is expected once in the 25,200-25,150 zone.

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

US Market:

Wall Street stocks rose again on Friday, adding to weekly gains following economic data that set the stage for the Federal Reserve to cut interest rates.

Analysts say new jobs and inflation data in recent days have supported the Fed’s belief that inflation has moderated significantly.

On Friday, futures markets shrugged off the prospect of a half-percentage-point cut in interest rates, rather than a quarter-point, after markets had favored a smaller cut earlier in the week.

The broad-based S&P 500 ended up 0.5 percent for the day and more than four percent for the week, at 5,626.02. The Dow Jones Industrial Average rose 0.7 percent to 41,393.78, while the tech-rich Nasdaq Composite Index rose 0.7 percent to 17,683.98.

European share:

European shares rounded off the week on a positive note, supported by technology, real estate and mining shares, while investors turned their attention to the US Federal Reserve ahead of long-awaited monetary easing at its meeting next week.

The pan-European STOXX 600 index was up 0.7% on the day at 515.75 points, up more than 1% for the week.
German stocks outperformed European peers with gains of around 1% as shares of Siemens Energy and SAP rose. Consumer prices in the region’s second-largest economy rose 2.2% year-on-year in August, after France’s CAC 40 rose 0.4%, with its preliminary reading.

Tech View:

The Nifty rallied on Friday, closing down 32 points amid choppy movements. A small negative candlestick with a small lower shadow formed on the daily chart. According to Nagaraj Shetty, Senior Technical Research Analyst, HDFC Securities, technically, such range-bound movement following a sharp uptrend is considered a breathing pattern and is seen as a continuation of the uptrend.

“On the weekly chart Nifty has moved forward and surrounded the long bearish candle of the previous week, hence the bearish pattern of the last week has been cancelled. This is a positive action and usually such negatives of a bearish pattern result in more upside,” said Shetty.

“Nifty’s short-term trend continues to be positive. A sustained move above 25,400 levels could push Nifty to the upside around 25,800 in the near term. Immediate support is at 25,200,” he added.

Stocks Showing Bullish Bias:

The momentum indicator Moving Average Convergence Divergence (MACD) showed bullish signals for Nuwama Wealth Management, Gravita India, Info Edge, Keynes Technology, Thangamile Jewellery, Piramal Enterprises, CET and others.

MACD is known for indicating the opposite trend 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 experience an upward movement. Conversely, when the MACD crosses below the signal line, it indicates a potential downward move.

Stocks signaling further weakness:

MACD showed bearish signs for Ajanta Pharma, Aris Lifesciences, Jubilant Industries, IIFL Securities, P&G Health, Concorde Control Systems, Technvision Ventures and others. A bearish crossover on the MACD for these stocks indicates that they may have started their downward journey.

Most active stocks by value:

Patanjali Foods (Rs 2,618 crore), Kalyan Jewelers (Rs 2,336 crore), Zomato (Rs 2,280 crore), HDFC Bank (Rs 1,984 crore), Bajaj Finance (Rs 1,668 crore), Granules India (Rs 1,439 crore), and Tata Motors (Rs 1,313 crore), were among the most active stocks on the NSE in terms of value. High activity in terms of value can help identify stocks with the highest trading turnover for the day.

Most active stocks in terms of volume:

Vodafone Idea (19.8 crore shares traded), Yes Bank (10.5 crore shares traded), Suzlon Energy (8.2 crore shares traded), Zomato (8.2 crore shares traded), IDBI Bank (7.7 crore shares traded), Tata Steel (5.4 crore shares traded) traded), and Sanvardhan Motherson International (3.3 crore shares traded), among others, were among the most traded stocks of the session on the NSE.

Stocks showing interest in buying:

Shares including Jubilant Pharmava, Godfrey Phillips, Home First Finance, OFSS, Piramal Enterprises, Century Textiles and Blue Star saw strong buying interest from market participants as they touched fresh 52-week highs, indicating bullish sentiment.

Selling pressure is seen in stocks

No major stocks touched their 52-week lows on Friday.

Sentiment meter bulls

Overall, market breadth favored the bulls, with 2,454 stocks ending in the green and 1,517 stocks settling in the red.

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