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

Indian equity markets extended their decline following the previous session’s relief rally, as escalating US-Iran tensions disrupted key Middle Eastern oil and gas supplies, sending crude prices higher. Analysts say a sustained rise in oil prices could weigh on investor sentiment and adversely affect India’s twin deficits, inflation trajectory and the RBI’s monetary stance. A rise in US 10-year bond yields and a strong dollar have encouraged FIIs to take a risk-off approach to domestic equities.

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

“While geopolitical tensions remain a near-term overhang, selective value-buying opportunities are expected to emerge, offering attractive entry points to long-term investors,” said Vinod Nair, head of research at Geojit Investments.

European markets

European stocks fell on Friday as the US-Iran war raised fresh worries about oil supplies, prompting traders to reconsider their expectations for a central bank rate cut. Europe’s STOXX 600 index fell 0.15%, undoing an earlier gain of about 0.5%, as oil prices appeared to stabilize.

Tech View

The broader framework remains weak, and any pullback is likely to attract selling pressure. Momentum indicators and oscillators remain in sell mode on both daily and weekly charts. Meanwhile, the India VIX rose another 11% to close near the 20 level. Any further increase in volatility could intensify downside risks.

Most active stocks in terms of turnover

Mazagon Dock (Rs 3,155 crore), ICICI Bank (Rs 3,013), HDFC Bank (Rs 2,970 crore), RIL (Rs 2,729 crore), LT Foods (Rs 2,436 crore), SBI (Rs 2,345 crore) and Commercial Engineering (Rs 7 crore) are the 2 most active stocks. Holding B was the most active in 2 stocks. High activity in 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: 45,08,40,141), Commercial Engineering (Shares traded: 7,59,37,223), Ircon International (Shares traded: 6,71,15,792), Suzlon Energy (Shares traded: 6,30,597, 597,57,592) Bank shares traded), 6,15,93,487), LT Foods (shares traded: 5,63,52,435) and Reliance Power (shares traded: 5,06,62,050) were among the most actively traded stocks in terms of volume on BSE.

Stocks show interest in buying

Commercial Engineering, Kirloskar Brothers, Ircon International, Radico Khaitan, United Breweries, Bharat Dynamics and Aegis Vopak were among the stocks that saw strong buying interest from market participants.

52 week high

MRPL, Data Patterns, Kirloskar Oil, ABB Power, BEL and Astra Poly Tech touched their 52-week highs.

Selling pressure is seen in stocks

Names that saw significant selling pressure included LT Foods, Tejas Networks, Vedanta Fashions, Godrej Properties, Mahanagar Gas, Ashok Leyland and Suven Pharma.

The sentiment meter favors the bears

Of the 4,374 stocks traded on the BSE on Friday, March 6, 1,812 stocks advanced, 2,396 declined, while 166 stocks remained unchanged.

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