The NSE Nifty50 ended at 23,290 points, up 2.05 per cent, while the S&P BSE Sensex ended at 76,693, up 2.16 per cent.
The Nifty has risen 3.4% and the Sensex 3.7% this week, clawing back all of Tuesday’s losses after Prime Minister Narendra Modi’s coalition won the general election by a surprisingly narrow margin.
Here’s what analysts are predicting for the market:
“On the daily chart, we can see that Nifty is inching up after a steep drop on Tuesday earlier this week. It has regained all the lost ground and is within reach of the previous high of 23,338. The V-shaped recovery has favoured the bulls and any dip towards the support zone of 22,800-22,700 should be utilised as a buying opportunity. On the upside, the psychological level of 23,500 is likely to attract profit booking at higher levels,” said Jatin Gedia, Sharekhan.
“Going forward, the market will maintain a buying stance at the lows unless it dips below 23,000. On the upper end, the index could head towards 23,500-23,600. On the lower end, profit booking could occur only if it dips below 23,000,” said Rupak De of LKP Securities. That said, here’s what some key indicators are suggesting about Monday’s move:
US Market
Wall Street stocks were mostly flat in choppy trading on Friday after a better-than-expected U.S. jobs report signaled a stronger economy but raised concerns the Federal Reserve might delay cutting interest rates longer than many investors had hoped. The Labor Department reported that the U.S. economy added about 272,000 jobs in May, well above the 185,000 that analysts had expected. The unemployment rate rose to 4 percent.
The benchmark S&P 500 index fell immediately after the release, while Treasury yields rose as traders downgraded their view of a September rate cut, but the index recovered and briefly hit an intraday record as investors realized the data pointed to the underlying health of the economy.
European stocks
European stocks fell on Friday, led by interest-sensitive sectors such as real estate and utilities, after a stronger-than-expected U.S. employment report raised concerns that the Federal Reserve would not cut interest rates anytime soon.
The continent-wide STOXX 600 ended down 0.2% but recorded its first weekly gain in three weeks.
Technical Perspective: A Long Bull Market
Nifty ended Friday’s session up 469 points, forming a long bull run at 23,290 points on the daily chart. The short-term trend of Nifty remained positive with the index closing close to its all-time high.
Hitting the overhead resistance near 23,300-23,400 levels may see the market move down slightly from the highs in the near term, which could provide a buying opportunity. Nagaraj Shetty of HDFC Securities said immediate support is at the 22,900 levels.
Stocks Showing a Bullish Bias
Momentum indicator Moving Average Convergence Divergence (MACD) indicated bullish trading in stocks like Avanti Feeds, Mastek, L&T Finance, Ramco Cement, Brigade Enterprises and Wipro.
The MACD is known to signal trend reversals in the securities and indices being traded. When the MACD rises above its signal line, it signals a bullish trend, indicating that the security’s price may rise, and vice versa.
Stock prices signal weakness ahead
The MACD has shown bearish signs in stocks like GSK Pharma, Rail Vikas Nigam (RVNL), Vijaya Diagnostic Centre etc. The bearish crossover of MACD in these stocks indicates that the downward trend has just begun.
Most Active Stocks by Value
Infosys (Rs 3,667 crore), HDFC Bank (Rs 2,886 crore), RIL (Rs 2,707 crore), Bajaj Finance (Rs 2,136 crore), L&T (Rs 2,066 crore), SBI (Rs 2,063 crore) and ICICI Bank (Rs 1,928 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: 5.4 crore), Power Grid (shares traded: 3.8 crore), Wipro (shares traded: 3.6 crore), ITC (shares traded: 2.8 crore), SBI (shares traded: 2.5 crore), Infosys (shares traded: 2.4 crore) and NTPC (shares traded: 2.3 crore) were some of the most traded stocks during the session on NSE.
Stocks showing buying interest
Shares of M&M, Bharti Airtel, Tata Steel, Divis Labs and Bajaj Auto among others have hit new 52-week highs, signalling strong buying interest from market participants and indicating bullish sentiment.
Stocks under selling pressure
None of the major stocks hit a 52-week low on Friday.
Sentiment Meter Favors Bulls
Overall, market breadth was in favor of bulls as 2,858 stocks rose and 1,001 fell.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not necessarily represent the views of the Economic Times)
