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

Tracking the weak global cues, benchmark equity indices closed in the red for the second consecutive session on Friday, dragged by banking, financial and IT stocks. The BSE Sensex ended 398 points lower at 57,527, while its broader peer Nifty50 ended below the 17,000 level.

Here's how analysts read the market pulse:

“The recent fall has faded hopes of sustained recovery, and we might again end up seeing range-bound moves in the index. Needless to say, the major support is intact at 16800 in Nifty. We thus reiterate our view to limit positions and maintain positions on both sides,” Ajit Mishra, VP - Technical Research, Religare Broking, said.

Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said, "The short-term trend of Nifty continues to be weak. Immediate resistances are left unchallenged and strong supports have started to break on the downside one after another. One may expect Nifty to slide down to 16,800-16,700 levels by next week. On the upper side, the area of 17,050 could be a crucial overhead resistance."

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

US market
Stocks shook off a weak start and ended higher on Wall Street even as worries about banks on both sides of the Atlantic continue to weigh on markets. The S&P 500 rose 0.6% Friday, marking its second straight weekly gain. The Dow Jones Industrial Average and the Nasdaq composite also rose. Treasury yields stabilized after an early drop.

European shares
European markets closed lower on Friday as investors took stock of central bank rate hikes and the updates from the banking sector. The pan-European Stoxx 600 closed 1.4% lower, with almost all sectors posting declines.

Tech View: Long bear candle
A long bear candle was formed on the daily chart, indicating a sell on rise action in the market around 17200 levels. The recent swing high of 17,207 could now be considered as a new lower top of the sequence, and the market is on the way down to the new lower bottom - below 16800 levels in the near term.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of ITI, Cyient, DCB Bank, Zydus Wellness, Black Box and NCL Industries, among others.

The MACD is known for signaling 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 signaling weakness ahead
The MACD showed bearish signs on the counters of Aditya Birla Capital, Petronet LNG, Glenmark Pharma, Asian Paints and Gujarat Ambuja Exports, among others. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.a

Most active stocks in value terms
HDFC Bank (Rs 2464 crore), ICICI Bank (Rs 1478 crore), Adani Green (Rs 1309 crore), RIL (Rs 1269 crore) and Campus Activewear (Rs 1228 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
Vodafone Idea (Shares traded: 11.35 crore), YES Bank (Shares traded: 9.36 crore), Zomato (Shares traded: 6.72 crore), PNB (Shares traded: 4.15 crore) and Tata Steel (Shares traded: 3.9 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Cyient, KPIT Technologies, Siemens and Tega Industries witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure
Shares of EasyTrip Planners, Sheela Foam, Jubilant Ingrevia, LIC, Tanla Solutions and Nippon Life AMC, among others, hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bears
Overall, market breadth favoured bears as 967 stocks ended in the green, while 2,541 names settled with cuts.

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