Benchmarks NSE Nifty 50 and S&P BSE Sensex closed down 0.05% and 0.01%, respectively, but rose 2.2% and 2.02%, respectively, for the week.
Analysts are predicting the market trends as follows:
“Nifty was sideways during the day after surpassing 23,000. Sentiment may remain subdued for the next few days and the index may remain in the range of 22,950 to 23,050. Active call and put selling activity at 23,000 means range bound trading is likely in the near term. Only a decisive dip below 22,950 can push the index towards 22,800. On the other hand, a sustained move above 23,050 could lead to a meaningful upside,” said Rupak De, of LKP Securities.
Jatin Gedia of Sharekhan said, “We believe this is just a temporary pause in the overall rally. On the upside, since Nifty has achieved its initial target of 23,000, we would raise it to the upper end of the ascending channel at 23,150. Long positions should have a trailing stop loss at 22,800. Having said that, here’s what some key indicators suggest about Monday’s move:
US Market:
U.S. stocks rebounded on Friday from a sharp drop the previous day on news that consumers’ inflation outlook is improving, with the Nasdaq climbing for the fifth straight week and closing at a record high. The S&P 500 rose 37 points, or 0.70%, to close at 5,305, while the Nasdaq Composite rose 185 points, or 1.11%, to 16,921. The Dow Jones Industrial Average rose 6.2 points, or 0.02%, to 39,071.
European stocks:
European stocks fell on Friday and extended their declines throughout the week as persistent inflationary pressures in the United States and signs that the euro zone economy is recovering raised doubts about the prospects for major central banks to cut interest rates multiple times this year.
The pan-European STOXX 600 index fell 0.1%, taking its weekly decline to about 0.4%, its biggest drop in three weeks.
Technical Perspective: Doji Candle
The Nifty ended almost flat on Friday after breaching the 23,000-point mark for the first time in history. The index formed an intraday doji after a major bull run on Thursday.
On the daily chart, Nifty continues to remain above the 20-day and 50-day SMAs, which is a positive signal. The 14-day RSI is rising at 67.5, which is encouraging as it is not overbought. “We expect further gains and new record highs in the coming sessions till the election results are announced, but the next one week may see volatile movement. The key support at 22795-22630 is where we should watch out for resumption of bearish market,” said Subhash Gangadharan, HDFC Securities.
Stocks exhibiting a bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) indicated bullish trading in exchanges like Aegis Logistics, Chennai Petro, Sobha, Balrampur Chini, Prism Johnson and Saregama India.
The MACD is known to signal trend reversals in the securities and indices being traded. When the MACD rises above its signal line, it is a bullish signal, indicating that the security’s price may rise, and vice versa.
Stock prices signal weakness ahead
MACD showed bearish signs in stocks like Triveni India, Sundaram Fasteners, SAIL, Narayana Hrudayalaya, Varun Beverages, Apollo Tyres etc. The bearish crossover of MACD in these stocks indicates that their downward journey has just begun.
Most Active Stocks by Value
Adani Ports (Rs 2,677 crore), HDFC Bank (Rs 2,341 crore), Adani Enterprises (Rs 1,184 crore), Hindalco (Rs 1,085 crore), RIL (Rs 1,051 crore), Axis Bank (Rs 1,031 crore) and SBI (Rs 1,023 crore) were among the most active stocks in terms of value traded on the NSE.High volume stocks in terms of value traded help identify the stocks with the highest trading volume for the day.
Most traded stocks
Tata Steel (shares traded: 3.8 crore), Adani Ports (shares traded: 1.9 crore), Hindalco (shares traded: 1.6 crore), HDFC Bank (shares traded: 1.5 crore), Power Grid (shares traded: 1.5 crore), NTPC (shares traded: 1.3 crore) and ITC (shares traded: 1.2 crore) were some of the most traded stocks during the session on NSE.
Stocks showing buying interest
Shares of Bharti Airtel, Eicher Motors, Divis Labs, Adani Enterprises, Tata Steel, SBI and Hero MotoCorp hit fresh 52-week highs, indicating strong buying interest from market participants, indicating bullish sentiment.
Stocks under selling pressure
None of the major stocks hit 52-week lows on Friday.
Sentiment Meter Supports Bearishness
Overall, market breadth was in favor of the bears as 2,254 stocks declined and 1,598 stocks advanced.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not represent the views of The Economic Times)
