Ajit Mishra, VP – Research, Religare Broking, said the market has recovered more than 10% from the bottom over the past five weeks, and now we are closing in on the major hurdle of the previous swing at 16,800. in Nifty. “A decisive break above this mark would maintain momentum and help the index test 17,400. In case of consolidation, the 16,250-16,500 area would serve as support.”
Anand James, Chief Market Strategist at
said that while major falls are not expected unless 16,485 gives way, the outlook for the same next week could increase if Nifty finds itself unable to push past the 16,690-710 region.
That said, here’s a look at what some key indicators suggest for Monday’s action:
Wall Street closes lower
Shares fell on Friday, giving back some of their gains from earlier in the week as concerns mounted over the global economy and the earnings outlook for major internet companies.
The S&P 500 fell 0.9% to snap a three-day rally that had taken Wall Street to its highest level in six weeks. The Nasdaq composite led the market lower with a 1.9% drop following worse-than-expected earnings reports from Snap, Seagate Technology and other tech-focused companies.
The Dow Jones Industrial Average held up better, slipping 0.4% more modestly. This was largely because the constituent of American Express gave an encouraging earnings report and said its cardholders were spending more.
European stocks close higher
European stocks recorded their best week in two months on Friday as worries about an energy supply crisis eased, bringing some calm to investors worried about a sharp rise in interest rates and a political crisis in Italy.
The pan-European STOXX 600 index closed 0.3% higher at its highest level since June 10, while for the week it jumped almost 2.9%. Meanwhile, the euro came under pressure after a key survey suggested the single-currency zone could be on the verge of recession due to collapsing demand and rising costs.
Tech View: Strong bullish candle on weekly charts
Nifty50 has formed a bullish candle on the daily chart and a strong bullish candle on the weekly timeframe. Analysts largely see index resistance at the 16,800-850 levels. They see strong support for the index at the 16,500 level.
Stocks Showing a Bullish Bias
The Momentum Moving Average Convergence Divergence (MACD) indicator showed a bullish trade setup on Bosch’s counters,
Fine Organic, PVR and Zomato.
The MACD is known to signal trend reversals in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see upward movement and vice versa.
Stocks Signal Weakness Ahead
The MACD showed bearish signs on the counters of KIMS, IOC,
and Properties of the hemisphere.
A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.
Most active stocks by value
RIL (Rs 1,268 crore), Infosys (Rs 1,058 crore),
(Rs 979 crore), (Rs 914 crore), HDFC Bank (Rs 881 crore) and SBI (Rs 759 crore) were among the most active stocks on NSE by value. Higher activity on a counter in terms of value can help identify counters with the highest turnover for the day.
Most active stocks by volume
SBI (Shares traded: 1.5 crore), ICICI Bank (Shares traded: 1.2 crore), ONGC (Shares traded: 1.2 crore),
(Shares traded: 1 crore), ITC (Shares traded: 1 crore) and Axis Bank (Shares traded: 9.7 crore) were among the most traded stocks during the session on NSE.
Stocks showing buying interest
Shares of CG Power & Industrial Solutions,
M&M Financial, , TVS Motor, Blue Dart and ITC witnessed strong buying interest from market participants as they hit new 52-week highs, signaling bullish sentiment.
Stocks are under selling pressure
DRC Systems, , and Renaissance Global witnessed heavy selling pressure and hit their 52-week lows, signaling bearish sentiment on the meters.
Sentiment meter favors bulls
Overall, market breadth favored winners as 1,744 stocks ended in the green, while 1,583 names settled with cuts.
(With agency contributions)
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)