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

The benchmark indices ended Friday’s session higher, with Nifty above 18,100 mark. Among sectoral indices, the metal index outperformed with gains of over 4%.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said, “Domestic indices had a steady start in line with its global peers. Nifty after having lacklustre movement for most of the day, edged higher in the last half an hour to close with gains of 64 points at 18,117 levels. The index is holding well above its 18K zones, and we expect a gradual up-move in the market towards 18300 zones over the next few days."

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said: “After showing a range bound movement in the last few sessions, Nifty made an attempt of an upside breakout of the range in the later part of Friday's session and closed the day higher by 64 points. After opening with a flat note, the market shifted in a narrow intraday range for the better part of the session, before showing renewed buying enthusiasm towards the end.”

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

US stocks end higher
Wall Street stocks finished a volatile day sharply higher Friday following good jobs data that was seen as keeping the pressure on the Federal Reserve to hike interest rates more. Friday's gains ended a four-day losing streaks for stocks, reducing the week's losses surrounding the Fed's latest big interest rate hike. The Dow Jones Industrial Average finished 1.3 percent higher at 32,403.22.

The broad-based S&P 500 gained 1.4 percent to 3,770.55, while the tech-rich Nasdaq Composite Index advanced 1.3 percent to 10,475.25.

European shares rally
European stocks rallied on Friday after U.S. jobs data backed bets the Federal Reserve would deliver smaller rate hikes, with hopes of easing COVID-19 curbs in China boosting mining and luxury stocks.

The STOXX 600 closed 1.8% higher, with basic resources, personal & household goods and automakers leading a broad rally.

Tech View
Headline index formed an Inside Bar on the daily scale. The hourly chart shows that the index is forming a distribution below the key Fibonacci retracement at 17,800 for the last couple of sessions, analysts said.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trend in the counters of Hindustan Construction Company, NHPC, TV18 Broadcast and Reliance Power, among others.

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 Aditya Birla, Delta Corp, Cipla, Apollo Hospitals and Gokaldas Exports, 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 2281 crore), Vedanta (Rs 1660 crore), SBI (Rs 1514 crore), and RIL (Rs 1419 crore) were among the most active stocks on NSE in value terms.

Most active stocks in volume terms
Vodafone Idea (Shares traded: 3.81 crore), Suzlon Energy (Shares traded: 1.41 crore), Yes Bank (Shares traded: 1.35 crore), JP Power (Shares traded: 1.07 crore), and Tata Steel (Shares traded: 0.82 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Rainbow Children's, RVNL, Bank of India, Raymond and Sundaram Fasteners, 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 Voltas, Motilal Oswal, Nippon Life and Voltas counter witnessed strong selling pressure and hit its 52-week lows, signaling bearish sentiment on the counters.Sentiment meter favours bulls
Overall, market breadth favoured losers as 1,967 stocks ended in the green, while 1,487 names ended in the red.


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