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

Indian shares logged weekly gains on Friday after US boutique investment firm GQG Partners' $1.87 billion investment in Adani stocks spurred a broad-based rally and helped markets look past rate-hike worries for the moment. The Nifty50 index rose 1.57% to 17,594.35, while the S&P BSE Sensex closed 1.53% higher at 59,808.97. Both benchmarks posted their best day since November 11.

“On the daily charts, we can observe that the Nifty is in a pullback mode and currently retraced 38.2% of the fall from 18,134 to 17,255. We believe that there is more steam left to this pullback rally, and hence it can extend higher till 17,700, where resistance in the form of the 50% Fibonacci retracement level (17695) and the 20-day moving average (17703) is placed. Considering the sharp upmove in today’s trading session, consolidation cannot be ruled out. Overall, we expect the Nifty to trade in the range of 17700 – 17200 from a short-term perspective,” Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas, said.

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

US market
Wall Street rallied on Friday to end a volatile week, as U.S. Treasury yields eased and economic data helped investors look past the growing likelihood that the Federal Reserve will have to keep its restrictive policy in place until late in the year.

All three major U.S. stock indexes surged more than 1%, with the tech-laden Nasdaq climbing close to 2% with a boost from interest rate-sensitive megacaps. U.S. Treasury yields eased in the wake of comments from Fed officials that calmed fears over inflation and interest rates. The Dow Jones Industrial Average rose 387.4 points, or 1.17%, to 33,390.97, the S&P 500 gained 64.29 points, or 1.61%, to 4,045.64 and the Nasdaq Composite added 226.02 points, or 1.97%, to 11,689.01.

European shares
European shares rose on Friday as hopes the U.S. Federal Reserve could adopt a measured approach to rate hikes lifted the technology sector, while miners extended their rally on growing bets for a demand recovery in China. The continent-wide STOXX 600 rose 0.9%, with rate-sensitive tech stocks up 1.8%.

Tech View: Long bullish candle
A long bull candle was formed on the daily chart, indicating an upside breakout of the consolidation movement of the last few sessions. Friday's up move seems to have confirmed the lower bottom reversal at 17255-28th Feb of the larger negative pattern of lower tops and bottoms. Presently, Nifty is in an attempt of staging an upside breakout of the initial hurdle at 17600 levels, and a move above this area could open the next upside resistance of around 17800 levels in the near term, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Reliance Power, Suzlon Energy, Union Bank, IRFC and IOB, among others.

Stocks signaling weakness ahead
The MACD showed bearish signs on the counters of Tech Mahindra, UltraTech Cement, PNB Housing Finance, CreditAccess Grameen and Cera Sanitaryware, among others. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks in value terms
Adani Enterprises (Rs 4,135 crore), Adani Ports (Rs 2884 crore), RIL (Rs 1599 crore), Ambuja Cements (Rs 1562 crore) and SBI (Rs 1543 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
YES Bank (Shares traded: 26.99 crore), Tata Steel (Shares traded: 11.71 crore), Suzlon Energy (Shares traded: 9.62 crore), PNB (Shares traded: 7.54 crore), and Vodafone Idea (Shares traded: 5.32 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of NMDC Steel, Finolex Cables, P&G Health, Jindal Stainless and Equitas SFB, among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.Stocks seeing selling pressure
Shares of Laurus Labs, Alembic Pharma, Muthoot Finance, Relaxo Footwear, Cipla, and Piramal Pharma among others hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured bulls as 2,182 stocks ended in the green, while 1,333 names settled with cuts.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)