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

Here's how analysts read the market pulse:

Ajit Mishra, VP - Research, Religare Broking, said the market has recovered over 10 per cent from the bottom in the last five weeks, and now we are inching closer to the major hurdle of previous swing high i.e. 16,800 in Nifty. "A decisive break above that mark would keep the momentum going and help the index to test 17,400. In case of any consolidation, 16,250-16,500 zone would act as a support."

Anand James, Chief Market Strategist at Geojit Financial Services, said that while major falls are not expected unless 16,485 gives away, the prospects of the same in the next week may rise should Nifty find unable to push beyond the 16,690-710 region.

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

Wall Street closes lower
Stocks slipped Friday, giving back some of their gains from earlier in the week as worries brewed about the global economy and prospects for profits at big internet companies.

The S&P 500 lost 0.9% to break a three-day rally that had carried 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 profit reports from Snap, Seagate Technology and other tech-oriented companies.

The Dow Jones Industrial Average held up better, slipping a more modest 0.4%. That was in large part because constituent American Express gave an encouraging earnings report and said its cardholders were spending more.

European stocks close higher
European shares notched up their best week in two months on Friday as concerns over an energy supply crunch eased, bringing some calm to investors worried about a big rise in interest rates and a political crisis in Italy.

The pan-European STOXX 600 index closed 0.3% up at its highest level since June 10, while for the week it jumped nearly 2.9%. Meanwhile, the euro came under pressure after a key survey suggested the single-currency area could be on the verge of recession due to slumping demand and rising costs.

Tech View: Solid bullish candle on weekly charts
Nifty50 formed a bullish candle on the daily chart and a solid bullish candle on the weekly scale. Analysts largely see resistance for the index at 16,800-850 levels. They see a strong support for the index at 16,500 level.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Bosch, HDFC Bank, Fine Organic, PVR, GSK Pharma and Zomato.

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 signalling weakness ahead
The MACD showed bearish signs on the counters of KIMS, IOC, Polycab India, ICICI Lombard, Allcargo Logistics and Hemisphere Properties.

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

Most active stocks in value terms
RIL (Rs 1,268 crore), Infosys (Rs 1,058 crore), ICICI Bank (Rs 979 crore), UltraTech Cement (Rs 914 crore), HDFC Bank (Rs 881 crore), and SBI (Rs 759 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
SBI (Shares traded: 1.5 crore), ICICI Bank (Shares traded: 1.2 crore), ONGC (Shares traded: 1.2 crore), Tata Motors (Shares traded: 1 crore), ITC (Shares traded: 1 crore) and Axis Bank (Shares traded: 9.7 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of CG Power & Industrial Solutions, Eicher Motors, M&M Financial, GE Shipping, TVS Motor, Blue Dart and ITC witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of Bafna Pharmaceuticals, CSL Finance, DRC Systems, Nandan Denim, Radhika Jeweltech and Renaissance Global witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured winners as 1,744 stocks ended in the green, while 1,583 names settled with cuts.


(With inputs from agencies)

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