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

The Indian market reversed early losses to end in the green on Friday. IT stocks rose on expectations of a near-certain US rate cut while consumer stocks recovered after falling 1% as domestic inflation data showed rural and urban food inflation remained elevated.

The benchmark BSE Sensex rose 843.16 points, or 1.04%, to settle at 82,133.12, while the broader Nifty 50 index closed up 219.60 points, or 0.89%, at 24,768.30.

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 the domestic market had smartly recovered from the day’s lows and exited the consolidation path led by the index heavyweights.

“Gradual easing in food inflation and price hikes by FMCG companies, along with the recent correction in valuations, supported the sector to outperform. Currently, the market is expecting a revival in consumer spending with the festive season and year-end holidays boosting sentiment. Additionally, the expectation of increased US spending is boosting the IT sector,” Nair added.

US markets

The major stock indexes on Wall Street turned to a mixed finish on Friday, capping a rare rough week for the market.

The S&P 500 was essentially flat, down less than 0.1%, the Dow Jones Industrial Average fell 0.2%, while the Nasdaq Composite rose 0.1%.

European markets

European stocks fell on Friday, sending the main benchmark to its first weekly decline in three, as investors sought clarity on Europe’s rate policy amid worries about economic growth and a potential trade war.

The pan-European STOXX 600 index fell 0.53% to a more than one-week low and ended the week about 0.8% lower.

Tech View

Rupak De, senior technical analyst at LKP Securities, said the Sensex’s weekly close saw a roller-coaster session in India’s equity markets.

“On the lower end, the Nifty found support around the neckline of an inverse head-and-shoulders pattern, which completed a retest before rallying to higher levels. Today’s low also matches the 38.2% retracement level of the previous rally. Going forward, the trend is likely to remain strong, with the possibility of touching 25,000 and more in the short term. At the lower end, support is placed at 24,550,” added Day.

Most active stocks in terms of turnover

Bharti Airtel (Rs 441.23 crore), Reliance Industries (Rs 139.13 crore), Zomato (Rs 101.48 crore), TCS (Rs 82.30 crore), HAL (Rs 73.53 crore), Adani Green (Rs 60.47 crore) and Swan Energy (Rs 60.47 crore) among the most active stocks BSE in terms of value were. 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 (traded shares: 48.99 crore), Yes Bank (traded shares: 9.73 crore), IRB Infrastructure Developers (traded shares: 5.67 crore), JP Power (traded shares: 5.45 crore), Suzlon Energy (traded shares: 4.9 crore) , Zomato (traded shares: 4.73 crore) and Tata Teleservices (Maharashtra) (Shares traded: 4.52 crore) was among the most actively traded stocks on the NSE in terms of volume.

Stocks show interest in buying

Shares of KPR Mills, Crisil, Westlife Foodworld, Bharti Airtel, Bharti Hexacom, Ramco Cements and Vardhaman Textiles witnessed strong buying interest from market participants.

52 week high

Over 227 stocks touched their 52-week highs today while 35 stocks slipped to their 52-week lows. These include KPR Mills, Crisil, Swan Energy, Page Industries, Indian Hotels, HCL Tech and Dixon Technologies.

Selling pressure is seen in stocks

Phoenix Mills, KSB, UCO Bank, Archin Chemical Industries, SAIL, Indian Overseas Bank and Aris Lifesciences were the stocks that saw significant selling pressure.

The sentiment meter favors the bulls

Market sentiment was neutral. Out of 4,105 stocks traded on BSE on Friday, 2,173 stocks declined, 1,818 stocks gained, while 114 stocks remained unchanged.

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