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

The Indian market closed in the red on Friday, ending a three-day winning streak. The fall came after IT giant Infosys and private lender Axis Bank released their quarterly results, with IT stocks falling on growing concerns over earnings growth in the current quarter and continued foreign outflows from domestic equities.

The benchmark BSE Sensex closed down 423.49 points, or 0.55%, at 76,619.33, while the broader Nifty 50 index shed 108.60 points, or 0.47%, at 23,203.20.

Here’s how analysts read the pulse of the market:

Commenting on the day’s action, Vinod Nair, head of research at Geojit Financial Services, said large caps were negatively impacted by declines in the banking and IT sectors, leading the domestic markets to settle lower after a volatile session.

“IT stocks declined due to a cautious outlook on discretionary spending, while private banking stocks fell on expectations of rising deposits and credit growth, along with tight liquidity conditions. We expect investors to take a risk-averse stance during ongoing Q3 results,” Nair said.

US markets

U.S. stocks rose on Friday on the strength of the economy and optimism about the future direction of interest rates. Investors were bracing themselves for a series of expected policy shifts under the incoming Trump administration.

The Dow Jones Industrial Average rose 397.40 points, or 0.92%, to 43,550.93. The S&P 500 rose 68.27 points, or 1.15%, to 6,005.61 and the Nasdaq Composite added 319.95 points, or 1.65%, to 19,658.24.

European markets

European shares ended on a positive note on Friday, driven by a broad rally due to falling government bond yields and favorable economic data from China. The STOXX 600 index rose 0.7%, marking its fourth straight weekly gain, and was up more than 2% for the week.

This marked the index’s longest winning streak since August 26 of the previous year, reflecting continued investor confidence as the benchmark posted its fourth straight week of gains.

Tech View

The Nifty remained under bearish pressure for the second session, according to Rupak De, senior technical analyst at LKP Securities, who noted that sentiment remained subdued as the index declined after facing resistance at crucial moving averages.

“This bearish sentiment may persist in the short term or as long as the index remains below 23,400. On the downside, it could drift towards 23,000. A critical break below 23,000 could trigger a broader market correction. Conversely, 23,400 is likely to remain a strong resistance level,” Day added.

Most active stocks in terms of turnover

Reliance Industries (Rs 3,819.97 crore), Axis Bank (Rs 3,347.27 crore), Infosys (Rs 2,993.46 crore), BLS International Services (Rs 1,893.96 crore), HDFC Bank (Rs 1,890.57 crore), Kalyan and Jewelers (Rs 63 .57 crore) ICICI Bank (Rs. 1,200.89 crore) was one of the most active stocks on the NSE in terms of value. High activity in share values ​​can help identify those with the highest trading turnover for the day.

Most active stocks in terms of volume

Vodafone Idea (traded share: 48.59 crore), Yes Bank (traded share: 6.14 crore), NBCC (traded share: 5.88 crore), Suzlon Energy (traded share: 4.18 crore), Zomato (traded share: 4 crore), BLS International Services (traded share: 3.83 crore), and HFCL (traded shares: 3.65 crore) were among the most actively traded stocks in terms of volume on the NSE.

Stocks show interest in buying

Shares of BLS International Services, NBCC, GSFC, Hindustan Copper, Bharat Dynamics, Manappuram Finance and IDBI Bank were among the stocks that saw strong buying interest from market participants.

52-week high

More than 95 stocks touched their 52-week highs today, while 61 stocks hit their 52-week lows. Biocon Ltd hit its 52-week high.

Selling pressure is seen in stocks

Stocks that experienced significant selling pressure included Sterling & Wilson Renewable Energy, Kalyan Jewelers India, Infosys, Policy Bazaar, NetWeb Technologies India, Axis Bank and Vijaya Diagnostic Centre.

Sentiment Meter Neutral

Market sentiment was neutral on Friday. Out of 4,065 stocks traded on BSE, 1,955 stocks declined, 1,991 advanced and 119 remained unchanged.

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