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

Markets ended lower for the second consecutive session, with Nifty holding 18,300 levels. Broader markets, however, underperformed headline indices.

Here's how analysts read the market pulse:

Rupak De, Senior Technical Analyst at LKP Securities, said, "Nifty bears remained at the helm during the first half of the trading session, whereas bulls fought back towards the end. On the daily chart, the index slipped below the recent consolidation, suggesting a waning bullishness. The momentum oscillator is in a bearish crossover. On the lower end, support exists at 18,210/18,000. On the higher end, resistance is visible at 18,450."

Vinod Nair, Head of Research at Geojit Financial Services, "Domestic market is now focusing on global trends for future direction due to lack of domestic triggers. Negative vibes in the developed market and aggressive comments from Fed officials have shaken the ongoing optimistic trend across the globe. Despite a late attempt of recovery, the domestic market largely traded with a negative shade, in all sectors except PSU banks."

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

US stocks end higher
Wall Street stocks picked up Friday after a rocky session following positive results from retailers and as markets tried to shake off concerns of further interest rate hikes by the US central bank.
The Dow Jones Industrial Average rose 0.6 percent to close at 33,745.69, while the broad-based S&P 500 edged up 0.5 percent to 3,965.34.

The tech-rich Nasdaq Composite Index was essentially flat, finishing at 11,146.06.

Europe's STOXX 600 rose more than 1%
Europe's STOXX 600 index closed higher on Friday in a broad-based rally led by retailers and automakers, while investors awaited minutes from the European Central Bank's last policy meeting and kept an eye out for a slew of data due next week.

The pan-European benchmark index jumped 1.2% to log its best one-day performance in more than a week.

The index has gained 5.1% so far in November and is on pace for its second straight month of gains, driven by several factors including better-than-expected earnings, despite lingering worries of a recession in the euro zone.

Tech View: Negative candle
On the daily chart, Nifty formed a reasonable negative candle with a long lower shadow. Technically, this pattern indicates an emergence of buying interest from the lows. Nifty took the support of 10day EMA and also the previous opening upside gap of 11th Nov to show an upside bounce on Friday.

The positive chart pattern, like higher tops and bottoms, continued on the daily chart, and Nifty is currently in line with the formation of new higher bottom formation. Nifty, on the weekly chart, formed a small negative candle with minor upper and lower shadow. This signals a formation of high wave type candle formation, and this reflects high volatility at the highs.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trend in the counters of Dish TV, Himadri Speciality, Equitas Holdings, Atul Auto and Alankit, 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 signalling weakness ahead
The MACD showed bearish signs on the counters of Bharat Electronics, Ujjivan SFB, Indraprastha Gas, Glenmark Pharma and Muthoot Finance, 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
HDFC Bank (Rs 402 crore), HDFC (Rs 225 crore), Tata Motors (Rs 66 crore) and PNB (Rs 57 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: 2.78 crore), Suzlon Energy (Shares traded: 1.56 crore), IRFC (Shares traded: 1.43 crore) and PNB (Shares traded: 1.25 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Bank of Maharashtra, IIFL Finance, Union Bank of India, Kirloskar Oil and Timken India, 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 Indigo Paints witnessed strong selling pressure and hit its 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bears
Overall, market breadth favoured losers as 1,360 stocks ended in the green, while 2,137 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)