Ahead of Market: 10 things that will decide D-St action on Monday

NEW DELHI: In the most painful week for D-Street investors in the last two years, headline indices Sensex and Nifty crumbled over 5 per cent each. Nifty ended the week below the 15,300 mark while closed at 51,360.42.

Here's how analysts read the market pulse:

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said on the higher side, the area of 15,600 levels (mid part of Thursday's long bear candle) is expected to be a crucial overhead resistance ahead and is unlikely to be broken on the upside in a hurry. After a small upside bounce, the Nifty could slide down to the 15,000-14,800 levels in the near term, he said.

Rupak De, Senior Technical Analyst at LKP Securities, said 15,400-15,500 is likely to remain a crucial resistance zone.

“Further upmove looks possible only above 15,500. On the flip side, a drop down towards 15,000 looks very much possible if Nifty sustains below 15,300.”

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

S&P 500 rises slightly, but still posts worst week since 2020
US stocks closed with a modest bounce on Friday but still suffered the biggest weekly percentage decline in two years as investors wrestled with the growing likelihood of a recession while global central banks tried to stamp out inflation.

Each of the three major Wall Street indexes fell the third week in a row. The benchmark S&P 500 index suffered its biggest weekly percentage drop since March 2020, the height of the COVID-19 pandemic plunge.

The Dow Jones Industrial Average fell 38.29 points, or 0.13%, to 29,888.78, the S&P 500 gained 8.07 points, or 0.22%, at 3,674.84 and the Nasdaq Composite added 152.25 points, or 1.43%, at 10,798.35.
For the week, the Dow lost 4.79%, its biggest weekly percentage drop since October, 2020, the S&P 500 lost 5.79% and the Nasdaq slid 4.78%.

European shares end lower for third week
European stocks edged higher on Friday, but posted their third straight week of losses as a slew of interest rate hikes from major central banks fuelled worries about a sharp economic slowdown.

The pan-European STOXX 600 index rose 0.1% in volatile trade, but ended the week 4.6% lower.

Tech View: Nifty forms indecisive Doji candle
Nifty50 on Friday formed an indecisive Doji candle on the daily chart. On the weekly scale, it formed a long bearish candle. Analysts are unsure whether there could be any recovery from here. The trend remains negative for now, they said.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Sun TV, Motilal Oswal, FDC Ltd, Cera Sanitary and SIS India.

The MACD is known for signalling 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 an upward movement and vice versa.

Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Elgi Equipments, Sonata Software, Federal Bank, Segis Logistics, Zydus Wellness and Manappuram Finance. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms
Reliance Industries (Rs 2,926 crore), TCS (Rs 1,609 crore), Infosys (Rs 1,342 crore), Titan Company (Rs 1,185 crore), ICICI Bank (Rs 1,115 crore), and Tata Steel (Rs 1,106 crore) were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify the counters with the highest trading turnovers in the day.

Most active stocks in volume terms
Tata Motors (Shares traded: 2.5 crore), ONGC (Shares traded: 2.3 crore), NTPC (Shares traded: 2.1 crore), Wipro (Shares traded: 2 crore), Hindalco (Shares traded: 1.8 crore) and ITC (Shares traded: 1.6 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of HAL witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Wipro, TCS, Shree Cements, BPCL, Asian Paints and Tech Mahindra witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bears
Overall, market breadth favoured losers as 999 stocks ended in the green, while 2,330 names settled with cuts.