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    Ahead of Market: 12 things that will decide stock action on Monday

    Synopsis

    Rupak De, Senior Technical Analyst at LKP Securities, said going forward, the recovery may continue as long as 16,550 is held decisively. For Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in, for the next couple of sessions, Nifty needs to sustain above 16,478 levels to develop sideways to positive bias.

    Boomerang stock market spins wildly and ends up going nowhereShutterstock.com
    New Delhi: Domestic equity markets snapped the seven-day losing streak on Friday after an intense meltdown in the equities. However, benchmark indices ended the weak on a strong note as investors lapped up stocks at discounted prices.

    Russia's strike on Ukraine scared the global markets, resulting in a meltdown but the less than expected sanctions on Russia boosted the morale of investors and buying was seen across the sectors.

    Here's how analysts read the market pulse:-
    Rupak De, Senior Technical Analyst at LKP Securities, said going forward, the recovery may continue as long as 16,550 is held decisively.

    For Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in, for the next couple of sessions, Nifty needs to sustain above 16,478 levels to develop sideways to positive bias.

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

    US market rallies after Thursday's plunge
    Wall Street's indexes extended the previous session's rally with Nasdaq and the S&P 500 registering gains for the week. The MSCI World Index closed up 2.43%; for the week it was down 0.7%. The Dow Jones Industrial Average finished up 2.51% after closing 0.28% higher on Thursday while the S&P 500 gained 2.24% after rising 1.5% the previous day and the Nasdaq Composite added 1.64% after rallying 3.3% on Thursday.

    European stocks close higher
    European stocks closed higher on Friday, bouncing back from a sharp sell-off as market participants assessed the impact of Western sanctions against Russia after the Kremlin launched an invasion of Ukraine. The pan-European Stoxx 600 closed up by 3.3%, a stunning comeback just a day after the benchmark reached its lowest point since the start of 2022. The index recorded its best session in over three months. All major bourses and sectors were in positive territory. Utilities, mining firms and banks led the gains, with each sector climbing more than 4%.


    Tech View: ABCD pattern formed

    Nifty 50 on Friday formed a bullish ABCD pattern, a kind of harmonic pattern that consists of two equivalent price legs. Analysts pointed out that there seem to be multiple hurdles in the 16,800-17,065 zone that not only includes the bearish gap zone but also the 200-day EMA whose value is placed around 16,720 levels.

    F&O: Lower rollovers in derivatives
    It was indeed a difficult week for traders as volatility was much higher in the markets which led to swings on both sides. Nifty ended the expiry session tad above 16200 but it recovered on Friday with a gap up and ended the week above 16650. The escalated geopolitical tensions between Russia and Ukraine created panic amongst market participants on the expiry day which led to a deep cut, said Ruchit Jain, Lead Research, 5paisa.com.

    "The rollovers in derivatives segment were also lower than the average and hence, how traders form fresh positions in the initial week of the March series will also be an important factor to see in the coming week," he added.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Tech Mahindra, Birla Cables, Tata Consumer Products, MindTree, Orient Bell, CARE Ratings, Asahi Songwon, KEI Industries, Hitachi Energy, Pfizer, Sanofi, Sasken Technologies and more.

    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 Eicher Motors, Speciality Restaurants, Univastu India, Kamat Hotels (India), Keynote Financial Services and Times Guaranty. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

    Most active stocks in value terms
    Tata Motors (Rs 2,244 crore), Infosys (Rs 1,654 crore), Reliance Industries (Rs 1,540 crore), HDFC Bank (Rs 1,332 crore), ICICI Bank (Rs 1,240 crore), Tata Power (Rs 1,135 crore) and Maruti Suzuki (Rs 1,120 crore) were among the most active stocks on Dalal Street in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.

    Most active stocks in volume terms
    Vodafone Idea (Shares traded: 24.74 crore), PNB (Shares traded: 18.93 crore), YES Bank (Shares traded: 10.28 crore), BHEL (Shares traded: 6.18 crore), Bank of Baroda (Shares traded: 6.14 crore), Suzlon Energy (Shares traded: 5.48 crore) and Tata Power (Shares traded: 5.21 crore) were among the most traded stocks in the session.

    Stocks showing buying interest:
    Fine Organics witnessed buying interest from market participants as it scaled their fresh 52-week highs.

    Stocks seeing selling pressure
    Aegis Logistics, Heidelberg Cement, AIA Engineering and Bajaj Consumer Care witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counter.

    Sentiment meter favours bears
    Overall, market breadth was in favour of gainers as 2,595 stocks ended in the green, while 781 names settled with cuts.

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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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