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

After Thursday’s fall, Indian equity markets recovered strongly on Friday with IT and banking heavyweights throwing their weight around, helping buying trends across sectors. Individually, Reliance Industries (RIL) was the biggest contributor to their surge. While the S&P BSE Sensex rose 1,961.32 points or 2.54% to settle at 79,117.11, the Nifty gained 557.35 points or 2.39% to close at 23,907.25.

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

Commenting on the day’s action, Rupak De, Senior Technical Analyst, LKP Securities, said the Nifty has returned to its 200-DMA after a strong recovery on Friday, indicating a corrective trend. Additionally, the 50-stock index has broken out of a few days of congestion in the daily timeframe, he said.

“The RSI has entered a bullish crossover near the oversold zone, indicating positive momentum. As long as the index remains above 23,600, sentiment seems favorable for a meaningful rally in the short term,” Day said.

US markets

Wall Street closed higher on Friday, with all three major indexes posting weekly gains, as investors took comfort from data pointing to robust economic activity in the world’s largest economy.

A measure of business activity hit a 31-month high in November, boosted by hopes for lower interest rates and more business-friendly policies from President-elect Donald Trump’s administration next year.

European markets

With tech-led gains in Europe on Friday, the benchmark stock index was on track for its first weekly advance of five, as geopolitical tensions eased selling pressure recently, but the mood was still gloomy after disappointing economic data.

The pan-European STOXX 600 was up 0.6% by 0915 GMT and set for its second day of gains.

Tech View

Decoding the technical charts Jatin Gedia, technical research analyst at Sherkhan said that Nifty opened a gap up today and witnessed a short covering rally. “It crossed the last five trading session highs and closed with a gain of 557 points. On the daily chart we can see that the Nifty crossed the previous swing high of 23,780 and thus reversed its short-term trend,” Gedia said.

On the upside it expects the Nifty to move back towards 24,400 with the possibility of extending towards 24,730 while on the downside, 23,630 – 23,560 should act as a critical support zone and a fall below these levels will weaken the structure.

Most active stocks in terms of turnover

Protein EGOV Technologies (Rs 460.27 crore), Adani Green Energy (Rs 263.12 crore), Adani Enterprises (Rs 254.34 crore), Adani Power (Rs 193.80 crore), Power Grid (Rs 182.67 crore), Adani Ports ( Rs.6 crores) (Rs. 152.02 crores, Reliance Industries (Rs 131.50 crore) and SBI (Rs 124.03 crore) were among the most active stocks on the BSE in terms of value.Higher activity in the counter in terms of value may help identify the counters with the highest trading turnover for the day.

Most active stocks in terms of volume

Vodafone Idea (traded shares: 7.25 crore), Shrestha Finvest (traded shares: 3.16 crore), Suzlon Energy (traded shares: 1.58 crore), GTL Infra (traded shares: 86.26 lakh), SpiceJet (traded shares: 60.73 lakh), Yes Bank (traded Share: 54.99 lakh) and power grid (Shares traded: 54.93 crore) was one of the most actively traded stocks in terms of volume on BSE.

Stocks show interest in buying

Shares of SBI, Bajaj Finance, Raymond, Praj Industries, Swan Energy, EaseMyTrip, MRPL and Sobha saw strong buying interest from market participants.

52 week high

Over 163 stocks touched their 52-week highs today while 107 stocks slipped to their 52-week lows. These include Coforge, Coromandel International, Crisil, Fortis Healthcare, HCL Technologies, Mastec, National Aluminum Company and Finance Company and Persistent Systems.

Selling pressure is seen in stocks

Largecap names include Bajaj Auto. Adani Energy Solutions, Adani Green Energy, Network 18 Media, Torrent Power and Honasa Consumer (MamaEarth) saw significant selling pressure.

The sentiment meter favors the bears

Actions in heavyweights such as Reliance Industries (RIL), Infosys and SBI helped propel markets amid buying trends across sectors. Market sentiment was bullish. Out of 4,041 stocks traded on BSE on Friday, 1,539 stocks declined, 2,396 stocks gained while 106 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)