Ahead of the market: 10 things that will determine stock action on Monday

Indian benchmark equity indices rose during a special one-hour “muhurta” trading session on Friday, marking the festival of Diwali, boosted by positive monthly sales data in auto stocks.

The NSE Nifty 50 rose 0.41% to 24,304, while the BSE Sensex gained 0.42% to 79,724, both snapping a two-day losing streak.

Here’s how analysts pulse the market:

“The Nifty has formed an inside-day pattern on the daily chart and remains below the crucial 20 and 50 SMAs with the same bearish crossover. It has been a muted week with mild recovery in stocks, as the number of stocks above the short-term 10 and 20 moving averages However, on the higher timeframes, the breadth remains largely negative as the 20-day advance declines to oversold levels. continues,” said Lovelash Sharma of SAS Online.

“Price action on the lower timeframe suggests a contraction in price action, with a range between 24,500 and 24,150. Price suggests 24,500 with multiple resistance at lower high, higher at lower low. Hold 24,344, respectively, multiple resistance with global event, key data That makes price and OI very important,” Lovelash said.

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

US Market:

Wall Street’s major indexes ended higher on Friday, recovering from the previous day’s sell-off as Amazon’s strong earnings significantly reduced US job growth in October.

Amazon.com rose after it reported earnings on Thursday that showed strong retail sales, which beat Wall Street estimates for profit.

The S&P 500 ended up 0.40% at 5,728 points, while the Nasdaq Composite gained 0.80% at 18,239%. The Dow Jones Industrial Average rose 0.70% to 42,053.

European share:

Europe’s main stock index posted its biggest one-day gain in five weeks on Friday, as banks rallied the overall market after recent declines, investors were optimistic about the economy. The data evaluated corporate earnings and the upcoming US elections.

The pan-European STOXX 600 index closed 1.1% higher, after falling nearly 3% over the past three days, but still posted a weekly decline.

Tech View:

As long as the Nifty remains below 24,500, the sentiment may continue to remain weak, any move towards this level may face selling pressure. On the downside, support is placed at 24,000, while resistance levels are seen at 24,500 and 24,750.

Stocks Showing Bullish Bias:

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on counters of Jubilant Pharmava, IIFL Finance, Bharat Dynamics, Chalet Hotels, Birla Corporation and JK Laxmi Cement.

MACD is known for indicating the opposite trend in traded securities or indices. When 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 signaling further weakness:

MACD showed bearish signals on counters of ICICI Prudential Life, Signity Technologies and Systematics Corporate Services. A bearish crossover on MACD on these counters indicates that they have started their downward journey.

Most active stocks by value:

Zomato (Rs 322 crore), Piramal Pharma (Rs 307 crore), M&M (Rs 296 crore), RIL (Rs 283 crore), Tata Motors (Rs 244 crore), PNB (Rs 237 crore), and BSE (Rs 227 crore) ) are among 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:

Vodafone Idea (Shares traded: 24.7 crore), PNB (Shares traded: 2.3 crore), Yes Bank (Shares traded: 1.7 crore), IDFC First Bank (Shares traded: 1.5 crore), Suzlon Energy (Shares traded: 1.5 crore), Zomato (shares traded: 1.3 crore), and JP Power (shares traded: 1.1 crore) were the top gainers of the session on the NSE. was among the other most traded stocks.

Stocks showing interest in buying:

Shares of Poly Medicure, Jubilant Pharmava, Piramal Pharma, UTI AMC, ABSL AMC, Fortis Healthcare and Suven Pharma witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, indicating bullish sentiment. .

Selling Pressure in Stocks:

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

Sentiment Meter Bulls:

Overall, market breadth favored the bulls as 3,046 stocks ended in the green, while 536 names settled in the red.

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