The NSE Nifty 50 index ended up 1.65% at 24,541.15 and posted a 0.7% weekly gain, while the S&P BSE Sensex was up 1.68% at 80,436.84 and 0.9% higher for the week.
Here’s how analysts pulse the market:
“On the daily chart, we can observe that the Nifty has maintained the 40-day moving average (24150) and witnessed a sharp pullback. The index is now moving towards the 24626 – 24650 zone where the 61.82% Fibonacci retracement level and gap 5 Considering the area formed on August, we change the short-term trend from negative to sideways and the consolidation range is likely to be 2400 – 24200,” Sherkhan’s Jatin Gedia.
Rupak De, Senior Technical Analyst, LKP Securities said, “Nifty rallied above 24500 after days of consolidating in the 400-500 point range. In the near term, Nifty may continue to consolidate in the 24300-24550 range. The only decisive move above 24550 is directional in the index. A buy-on-dips strategy can be more effective until Nifty falls below 24300 which can trigger an up move.”
That said, here’s a look at what some key indicators suggest for Monday’s action:
US Market:
US stocks ended higher on Friday as worries about an economic slowdown eased and investors focused on next week’s Jackson Hole Economic Symposium.
The S&P 500 and Nasdaq posted gains for a seventh straight session, as stocks recouped losses from a tailspin two weeks ago. All three indexes posted their biggest weekly percentage gains in months, with the S&P 500 and Nasdaq notching their first weekly gains in five.
The S&P 500 rose 0.20% to close at 5,554.56 points, while the Nasdaq Composite closed up 0.21% at 17,631.81. The Dow Jones Industrial Average rose 0.24% to 40,658.68.
European share:
European stocks ended the week with healthy gains as a slew of U.S. data bolstered risk sentiment globally, but attention now turns to Federal Reserve Chairman Jerome Powell’s eagerly awaited speech at Jackson Hole this week.
The pan-European STOXX 600 index rose 0.3% on the day, still at its two-week high and entering its best week since May 6. For the week, the index was up 2.4%.
London’s FTSE 100 was the weakest of its major European peers, down 0.4% after British retail sales rose 0.5% in July, according to estimates. Italy’s FTSE MIB outperformed peers with a gain of 2.2%.
Tech View: Long bull candle
The Nifty formed a long bull candle on the daily chart with a lower shadow up 397 points in the Friday session and crossed the 21-DEMA placed at 24,365.
Nifty has now moved towards the barrier area of the previous large opening downside gap of 5th August and the downside gap around 24700 level is expected to be filled soon. The next upside to be seen is around 24700 and 25000 in the near term. The immediate support is at the 24350 level, said Nagaraj Shetty of HDFC Securities.
Stocks Showing Bullish Bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on counters of Welspun Corp, Aditya Birla Capital, FirstSource, DLF, Equitas Small Finance Bank and Glenmark Pharma.
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 see an upward movement and vice versa.
Stocks signaling further weakness:
MACD showed bearish signals on the counters of Adani Wilmar, Adani Enterprises, Pfizer, J&K Bank, Network18 Media and Muthoot Finance. A bearish crossover on MACD on these counters indicates that they have started their downward journey.
Most active stocks by value:
HDFC Bank (Rs 2,262 crore), CDSL (Rs 1,735 crore), TCS (Rs 1,519 crore), RIL (Rs 1,386 crore), HAL (Rs 1,360 crore), Infosys (Rs 1,353 crore), and ICICI Bank (Rs 1,295 crore) was among the other 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: 29 crore), Suzlon Energy (Shares traded: 15.5 crore), Yes Bank (Shares traded: 9.7 crore), Tata Steel (Shares traded: 5.4 crore), Zomato (Shares traded: 4.2 crore), FirstSource (Shares Traded: 3.8 Crore), and NHPC (Shares Traded: 3.4 Crore) among others were among the most traded stocks of the session on NSE.
Stocks showing interest in buying:
Shares of CDSL, Nippon Life AMC, Welspun Corp, Firstsource, MCX India, Glenmark Pharma and Keynes Technology saw strong buying interest from market participants as they scaled their fresh 52-week highs, indicating bullish sentiment.
Selling Pressure in Stocks:
Shares of CreditAccess Grameen hit their 52-week low, signaling bearish sentiment over the counters.
The sentiment meter favors the bulls:
Overall, market breadth favored the bulls as 2,414 stocks ended in the green, while 1,527 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)
(You can now subscribe to our ETMarkets WhatsApp channel)
