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

India’s benchmark equity indices Sensex and Nifty 50 snapped a three-day losing streak on Friday as gains in Axis Bank boosted financial heavyweights, although foreign fund outflows dragged the benchmark to a third weekly loss.

The Nifty 50 index closed up 0.42% at 24,854 points, after touching a two-month low earlier in the session, while the S&P BSE Sensex gained 0.27% at 81,224.

Here’s how analysts pulse the market:

“Nifty has moved up sharply after making a panicky bottom around 24,570, failing to sustain below 24,700. On the hourly chart, a positive divergence is seen at RSI (14), indicating a shift towards positive price momentum. Watch for immediate resistance At 24,900, a decisive move above 24,900 earlier could trigger a short-term rally, as long as the Nifty remains above 24,750, the trend is likely to remain strong,” said Rupak De of LKP Securities.

Tejas Shah of JM Financial & BlinkX said, “As long as Nifty is above 24,700 mark, there is no sense of panic. Support for Nifty is now seen at 24,700-750 and 24,500. On the upside, immediate psychological resistance for Nifty is 25,000 mark. is on and the next critical resistance zone is at the 25,250-300 level, overall, the market is oversold but still in the grip of the bears and therefore should not be too adventurous until a slight increase is seen.”

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

US Market:

The Dow Jones Industrial Average and S&P 500 hit record closing highs on Friday, with the Nasdaq also in positive territory, as markets were boosted by an earnings-driven jump in Netflix shares and broader gains across technology stocks.

All three major Wall Street benchmarks also comfortably posted their sixth consecutive weekly gain, their longest weekly winning streaks since late 2023.

For the week, the S&P 500 rose 0.9%, the Nasdaq Composite rose 0.8% and the Dow Jones Industrial Average rose 1%.

European share:

Europe’s STOXX 600 ended higher on Friday, as tech stocks staged a strong comeback from a bullish weekend, while European Central Bank rate cuts and a jump in corporate earnings helped the index post a second straight week of gains.

The STOXX 600 closed up 0.2% as the tech sector gained 2%.

Tech View:

A reasonably positive candle with a small lower shadow was formed on the daily chart. Technically, this pattern signals a short-term reversal in the market on the upside post-downward correction. Friday’s chart pattern indicates the formation of a bullish piercing line-type pattern.

A sustained upmove from Friday’s low could be an encouraging factor for the bulls to make a comeback. A follow-through upmove from here is expected to confirm the decisive bottom reversal pattern. The immediate support is at 24,500 and the next overhead resistance is around the 24,950-25,000 level, said Nagaraj Shetty of HDFC Securities.

In open interest (OI) data, the highest OI on the call side was seen at 25,000 and 24,900 strike prices, while on the put side, the highest OI was seen at 24,800 strike price followed by 24,700.

Stocks Showing Bullish Bias:

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on counters of Aditya Birla Real Estate, Tejas Networks, Zee Entertainment Enterprises, Wipro, IDBI Bank and Bank of Baroda.

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 BSE, Varun Beverages, Olectra Greentech, Veroc Engineering, Lloyds Metals and DB Realty Express. A bearish crossover on MACD on these counters indicates that they have started their downward journey.

Most active stocks by value:

Mazagon Dock Shipbuilders (Rs 3,830 crore), Zomato (Rs 2,819 crore), Axis Bank (Rs 2,469 crore), BSE (Rs 2,461 crore), HDFC Bank (Rs 2,077 crore), Wipro (Rs 2,048 crore) ), and Infosys (Rs 2,048 crore to 1,991 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:

Zomato (shares traded: 10.8 crore), Manappuram Finance (shares traded: 8 crore), JP Power (shares traded: 7.2 crore), Yes Bank (shares traded: 5.7 crore), Zee Entertainment Enterprise (shares traded: 4.1 crore), The session on NSE included Wipro (shares traded: 3.7 crore), and Suzlon Energy (shares traded: 3.6 crore).

Stocks showing interest in buying:

Shares including Motilal Oswal, Aditya Birla Real Estate, Anand Rathi Wealth, DOMS Industries, MCX India, Nalco and Torrent Power saw strong buying interest from market participants as they scaled their fresh 52-week highs, indicating bullish sentiment. gives

Selling Pressure in Stocks:

Shares of Ujjivan Small Finance Bank, Easy Trip Planners and Zee Entertainment Enterprises touched their 52-week lows, signaling bearish sentiment on the counter.

Sentiment Meter Bear:

Overall, market breadth favored the bears as 1,839 stocks ended in the green, while 2,110 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)