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    Ahead of Market: 12 things that will decide stock action today

    Synopsis

    Analysts said the market may see more gains if Nifty 50 succeeds in crossing the immediate resistance level of 15,900.

    Market aheadiStock
    Rohit Singre, Senior Technical Analyst at LKP Securities, said that 15,900 will be a tough resistance level for Nifty 50 to cross.
    NEW DELHI: After S&P 500 ended last week at a record high, Asian shares got off to a cautious start on Monday. A spike in coronavirus cases across Asia over the weekend is hurting investor sentiment.

    At 7:20 hours (IST), Nifty futures on the Singapore Exchange traded 5 points higher signalling a likely muted start for Dalal Street.

    Let's have a look at the key factors influencing market mood this morning:
    US shares end at record high
    S&P500 ended the week at a record high on Friday, lifted by Nike and several banks, while weaker-than-expected inflation data eased worries about a sudden tapering in stimulus by the Federal Reserve. The Dow Jones Industrial Average rose 0.69 per cent to end at 34,433.84 points, while the S&P 500 gained 0.33 per cent to 4,280.69. The Nasdaq Composite dropped 0.06 per cent, to 14,360.39.

    Asian shares start on cautious note amid rise in COVID-19 cases
    Asian shares got the week off to a cautious start on Monday as a spike in coronavirus cases across Asia over the weekend hurt investor sentiment while oil hovered around 2-1/2 year highs. MSCI's broadest index of Asia-Pacific shares outside Japan was last a shade weaker at 703.17, still near a two-week high of 705.35 made on June 16. Australian shares slipped 0.3% while South Korea's KOSPI index was slightly higher.

    Tech View: Nifty hurdle seen at 15,900
    Nifty50 on Friday formed an indecisive candle on the daily chart that resembled a 'Hanging Man' pattern. On the weekly scale, the index formed a bullish candle. Analysts said the index can see good upside on a move above the 15,900 level. They see support at around the 15,700 level. Independent analyst Manish Shah said that the weekly bullish candle overpowered the bearish candle that the index had made in the previous week.

    Check out the candlestick formations in the latest trading sessions
    Candlestick formationsETMarkets.com

    F&O: Options signal wider trading range
    India VIX fell sharply by 11.47 per cent from 15.09 to 13.36 level. The fear gauge has failed to move above 16-16.50 level in the last three weeks and hovered near its lowest level of the last 17 months. Lower volatility indicates an overall bullish market bias, but a small bounce in VIX can give some volatile cues to the market. Since it is the beginning of a new series, options data lay scattered at different strikes. On the options front, maximum Put OI was seen at 15,500 level followed by 15,000 strike while maximum Call OI was seen at 16,000 level followed by 16,500. Call writing was seen at 16,400 and 16,500 levels, while there was Put writing at 15,800 and then 15,400 levels. Options data suggested a wider trading range between 15,500 and 16,200 levels while an immediate range is seen between 15,700 and 16,000 levels.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Vodafone Idea, Tata Motors, HDFC Bank, Usha Martin, Tech Mahindra, Shoppers Stop, Max Financial Services, BPL, Gujarat Apollo Industries, MSTC, SBI Life Insurance, Shriram EPC, HSIL, Gallantt Metal, Geekay Wires, L&T Technology Services, Dhani Services, Nagarjuna Fertilizer, Prakash Pipes, Foseco India, Bajaj Electricals, JK Cement, Mold-Tek Packaging, Magadh Sugar Energy, Bafna Pharmaceutical, and Tasty Bite.

    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 Alok Industries, Future Consumer, Vikas Proppant, Bombay Dyeing, Centrum Capital, Edelweiss Financial Services, Future Enterprises, Network 18 Media, PTC India, United Spirits, Titan Company, Dabur India, Marico, MOIL, GE Power India, Va Tech Wabag, Alankit, Tata Communications, Jump Networks, Sastasundar Ventures, Zuari Agro Chemicals, Avenue Supermarts, Cyient, Bharat Road Network, Panache Digilife, Arman Financial Services, Dhunseri Investments, Nagreeka Exports, Consolidated Finvest, Adroit Infotech and Pilani Investments. 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 5,380.08 crore), Tata Steel (Rs 2,086.06 crore), Kotak Bank (Rs 1,658.20 crore), Infosys (Rs 1,530.72 crore), Ashok Leyland (Rs 1,306.72 crore), SBI (Rs 1273.24 crore), Apollo Hospital (Rs 1,260.70 crore), Sona BLW Precision Forgings (Rs 1,181.41 crore), SAIL (Rs 1,097.09 crore) and ICICI Bank (Rs 953.57 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 the highest trading turnovers in the day.

    Friday's most active stocks in volume terms
    Vodafone Idea (Shares traded: 50.12 crore), Suzlon Energy (Shares traded: 15.93 crore), PNB (Shares traded: 11.10 crore), Ashok Leyland (Shares traded: 10.43 crore), SAIL (Shares traded: 8.41 crore), YES Bank (Shares traded: 6.44 crore), RattanIndia Power (Shares traded: 5.72 crore), Reliance Communication (Shares traded: 5.06 crore), Bank of Baroda (Shares traded: 4.96 crore) and NALCO (Shares traded: 4.95 crore) were among the most traded stocks in the session.

    Stocks showing buying interest
    Bajaj Finserv, Coforge, ICICI Prudential Life Insurance, Infosys, Oil India, Tata Consultancy Services, Aditya Birla Retail (PP), Apollo Hospital, Navin Fluorine, Thyrocare Technologies, and Godfrey Philips witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Friday, signalling bullish sentiment.

    Stocks seeing selling pressure
    Shivalik Bimetal Controls and RIL (PP) witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.

    Sentiment meter favours bulls
    Overall, the market breadth remained in favour of the bulls. As many as 300 stocks on the BSE500 index settled the day in the green, while 196 settled the day in the red.

    Podcast: What is keeping the upside capped for Dalal Street?
    Market is hovering near lifetime highs, but appears to be in a consolidative mode. What is keeping the upside capped? Which Nifty50 stocks should you be bullish on? What are the technical charts suggesting?



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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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