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

The Indian market ended in the red on Friday, dragged down by a sell-off in heavyweight financials and IT stocks, as investor sentiment remained cautious after the US Federal Reserve projected a modest rate cut next year, prompting foreign fund inflows.

The benchmark BSE Sensex fell 1176.46 points, or 1.49%, to settle at 78,041.59, while the broader Nifty 50 index ended 364.20 points, or 1.52% lower, at 23,587.50.

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 disappointment over the slower-than-expected rate cut by the US Fed had adversely affected global market sentiment.

“This recessionary outlook is particularly affecting the domestic market, which is already struggling with high valuations and low income growth. The sell-off has been broad, with significant declines in mid- and small-cap stocks, where valuation premiums are at historic highs. The IT sector is significantly underperforming as it was among the best performers in anticipation of a faster rate cut in 2025,” Nair added.

US markets

US stocks opened the trading week on Friday after two disappointing sessions as a cooler-than-expected inflation report and comments from Federal Reserve officials eased concerns about the path of interest rates.

The Dow Jones Industrial Average rose 1.18% to 42,841.06, the S&P 500 rose 1.09% to 5,930.90 and the Nasdaq Composite gained 1.03% to 19,572.60.

European markets

Europe’s STOXX 600 posted its second straight weekly decline on Friday, with the healthcare sector hurt after Danish firm Novo Nordisk tumbled on disappointing data from its next-generation obesity drug trial.

The pan-European STOXX 600 index closed 0.9% lower, paring some losses after falling as much as 2% during the session, to close around 2% for the week, its worst week since early September.

Tech View

On the daily chart, the Nifty is trading below the 20-day moving average (DMA) and 40-DEMA of 24,363 and 24,350, respectively, said Kunal Shah, senior analyst at Mira Asset Sharekhan.

“The momentum indicator has a negative crossover on the daily chart. On the hourly chart, Nifty is trading below the 20-hour moving average (HMA) and 40-HEMA of 23,962 and 24,135 respectively. The momentum indicator has a negative crossover on the hourly chart. Market breadth was negative at the National Stock Exchange with 474 advances and 2,225 declines,” Shah added.

Most active stocks in terms of turnover

Zomato (Rs 7,675.63 crore), ICICI Bank (Rs 7,532.67 crore), JSW Steel (Rs 2,663.32 crore), Kotak Bank (Rs 2,562.50 crore), Reliance Industries (Rs 2,469.95 crore), Mahindra & Mahindra and 39.5 crore. Rupees HD Bank (HD532.95 crore) (Rs. 2,284.68 crore) was one of the most active stocks on the NSE in terms of value. 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 Share: 39.27 Crore), Zomato (Traded Share: 27.14 Crore), JP Power (Traded Share: 11.59 Crore), Yes Bank (Traded Share: 7.60 Crore), ICICI Bank (Traded Share: 5.84 Crore), Suzlon Energy (Traded Share: 5.50 Crore). crore) and steel on Tata NSE in terms of volume (Shares traded: 4.65 crore) was one of the most actively traded stocks.

Stocks show interest in buying

Shares of GIC, Aegis Logistics, Network18 Media, Techno Electric, BASF India, New India Assurance and Newgen Software Technologies witnessed strong buying interest from market participants.

52-week high

Over 229 stocks touched their 52-week highs today while 68 stocks slipped to their 52-week lows. Among those touching their 52-week high were GIC, KPR Mills, Coromandel International, BLS International Services, Wipro, Muthoot Finance and Coforge.

Selling pressure is seen in stocks

Significant selling pressure was seen from Siemens, Torrent Power, RBL Bank, Pfizer, LTIMindtree, Mazagon Dock Ship and Balrampur Chinese Mills.

The sentiment meter favors the bulls

Market sentiment was bearish. Out of 4,085 stocks traded on BSE on Friday, 3,044 stocks declined, 958 stocks gained, while 83 stocks remained unchanged.

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