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

Indian benchmark equity indices on Friday marked their longest weekly losing streak since August 2023, as broad-based selling continued amid continued foreign investor inflows and disappointing corporate earnings.

The NSE Nifty fell 2.7% for the 50-week period, while the BSE Sensex fell 2.2%, posting its fourth consecutive weekly loss. All sectoral indices posted weekly losses with small-caps and mid-caps down 6.5% and 5.8% respectively.

Here’s how analysts measure market pulse:

“Nifty slipped below recent consolidation as lack of follow-up buying attracted selling pressure, decisively falling below 24,350. Sentiment looks extremely weak, with pullback selling likely. Any rise towards 24,300-24,400 could be used long. A support near 24,000 could lead to a downtrend.

Sharekhan’s Jatin Gedia noted, “On the daily chart, the Nifty, after a one-day hiatus, has resumed its decline, reaching 24,000–24,050, which is in line with the psychological support and the daily lower Bollinger Band, barring a possible sharp decline. The trend remains negative, but there could be a pullback towards 24,350, which is significant from a short-term perspective.”

Here’s a look at what the major indicators suggest for Monday’s action:

US market

Wall Street was mixed after a cautious session ahead of the US presidential election. Investors are also looking forward to next week’s big economic data and earnings from tech giants like Apple and Meta.

The Dow Jones Industrial Average was down 0.6%, the S&P 500 was down less than 0.1%, while the Nasdaq Composite was up 0.6%.

European shares

Europe’s main stock index closed flat on Friday’s choppy session, posting weekly losses due to weak corporate earnings from auto-related companies such as Mercedes-Benz and Valeo.

The pan-European STOXX 600 closed flat for a second day in a row and posted its first weekly loss in three, with real estate stocks among the hardest-hit sectors.

Auto stocks were muted with Germany’s Mercedes-Benz falling 1% after missing third-quarter earnings estimates.

Tech View: Long bearish candle

The Nifty has formed a long bearish candle on the weekly chart, indicating continued pressure in the near term. However, a minor pullback or sideways consolidation is likely in the next one to two days after Friday’s sharp decline.

In open interest (OI) data, the highest OI on the call side was at 24,400 and 24,300 strike prices, while on the put side, it was at 24,200, followed by 24,100.

Stocks show a bullish bias

Momentum indicator MACD showed bullish signs for Axis Bank, IDBI Bank, Aster DM Healthcare, Coforge, Shree Cements and CSB Bank. When MACD crosses above the signal line it indicates a potential upward movement.

Stocks signal further weakness

MACD showed bearish signals for Birlasoft, Nippon Life AMC, Narayan Hrudayalaya, Abbott India, Sun Pharma Advanced Research and MCX, suggesting that these stocks may start a downward trend.

Most active stocks in value terms

IndusInd Bank (Rs 6,101 crore), Dixon Technologies (Rs 5,795 crore), RIL (Rs 2,473 crore), HDFC Bank (Rs 2,274 crore), ICICI Bank (Rs 1,693 crore), Zomato (Rs 1,678 crore) ), and Axis Bank (Rs. 1,678 crore) at Rs. 1,513 crore) were among the most active stocks on the NSE in terms of value, highlighting the trading turnover.

Most active stocks in terms of volume

Yes Bank (9.7 crore shares), Zomato (6.6 crore shares), IDFC First Bank (6.4 crore shares), JP Power (5.9 crore shares), IndusInd Bank (5.6 crore shares), Suzlon Energy (4.9 crore shares), and BEL (4 crore shares) were among the most traded stocks.

Stocks show interest in buying

Strong buying interest was seen in Deepak Fertilizers, Radico Khaitan, Dixon Technology, Coforge and Max Financial, which touched fresh 52-week highs.

Selling pressure is seen in stocks

Shares of IndusInd Bank, Poonawalla Fincorp, Bandhan Bank, ITI, Zee Entertainment Enterprises, IDFC First Bank and Syrma SGS Technology touched their 52-week lows, signaling bearish sentiment.

The sentiment meter favors the bears

Overall, market breadth favored the bears, with 3,215 stocks ending in the red, while 738 closed in the green.

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