market triggers: Ahead of Market: 10 things that will decide stock market action on Monday

The national Nifty stock index rode an eight-day winning streak on Friday but managed to end in the green on the weekly scale. Interest rate sensitive sectors such as banks, autos and real estate stocks saw strong profit taking. NSE volumes were above the average of recent months, suggesting aggressive selling after a sustained rise.

Here is how analysts read the pulse of the market:

Choice Broking’s Palak Kothari said Nifty’s support has moved around 17,600 levels, while on the upside 18,000 could be an immediate hurdle. On the other hand, Bank Nifty has support at 38,500 levels while resistance at 40,000 levels.

Amol Athawale of Kotak Securities said a new uptrend is only possible if the index clears the resistance at 17,950, which could then take it to levels of 18,050-18,150.

That said, here’s a look at what some key indicators suggest for Monday’s action:

The US market is collapsing

Stocks fell on Friday as Wall Street’s summer rally faltered and rate hike fears resurfaced, leading major averages to end the week on a sour note. The S&P 500 slid 1.29% to close at 4,228.48, while the Dow Jones Industrial Average fell 292.30 points, or 0.86%, to 33,706.74. The Nasdaq Composite fell 2.01% to settle at 12,705.22. For the week, the S&P edged down 1.21%, while the Dow slipped 0.16%. The tech-heavy Nasdaq closed the week down 2.62%.

European stocks end lower

European markets closed lower on Friday, following global uncertainty as investors chart the course for monetary policy and continue to digest corporate earnings reports. The pan-European Stoxx 600 index tentatively ended down 0.8%, with travel and leisure stocks leading the losses, down 3%. Health care stocks, meanwhile, added 0.7%.

Tech View: Bearish candle on daily charts

Nifty50 formed a bearish candle on the daily chart that engulfed the last sessions of swinging candles, sending signs of weakness. On the weekly scale, the index formed an indecisive candle after four bullish candles. Analysts said the index could experience consolidation, with a negative bias.

Stocks Showing a Bullish Bias

The Moving Average Convergence Divergence (MACD) momentum indicator showed a bullish trade setup on the counters

Emami, Tata Comm, ABB Power, Mastek and .

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 Varroc Engg counters,

IOC, ONGC and Anupam Rasayan.

A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks by value

(Rs 2,126 crore), RIL (Rs 1,149 crore), (Rs 1,008 crore), (Rs 941 crore), (Rs 872 crore) and (Rs 844 crore) were among the most active stocks on NSE in terms of valuable. 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

Tata Steel (Shares traded: 5.7 crore), ONGC (Shares traded: 3.5 crore), Adani Ports SEZ (Shares traded: 2.5 crore),

(Shares traded: 1.7 crore), Bharti Airtel (Shares traded: 1.4 crore) and SBI (Shares traded: 1.1 crore) were among the most traded stocks during the session on NSE.

Stocks showing buying interest

Shares of Adani Ports SEZ, L&T, Infosys,

and TCS witnessed strong buying interest from market participants as they hit new 52-week highs, signaling bullish sentiment.

Stocks are under selling pressure

Shares of

Bajaj Finserv, , Tata Motors, Tata Consumer, BPCL and were among those who witnessed heavy selling pressure and hit their 52-week lows, signaling bearish sentiment on the meters.

Sentiment meter favors bears

Overall, market breadth favored losers as 1,361 stocks ended in the green, while 2,047 names settled with cuts.

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

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