The NSE Nifty 50 fell 1.09 per cent to 24,531, while the S&P BSE Sensex closed down 0.91 per cent at 80,604.
Friday’s decline trimmed the benchmark’s weekly gain to 0.1%. The index had been on a seventh weekly gain streak, its longest weekly gain since January 2018.
Here’s what analysts are predicting for the market:
“On the daily chart, we can see that Nifty is facing resistance at 24850-24900 zone, which is where the Fib levels are placed. Negative divergences and crossovers in momentum indicators indicate that the weakness is likely to continue. Hence, there may be some consolidation in the near term ahead of important economic events. In terms of levels, 24400-24350 are key support zones and 24730-24780 will act as key resistance from a short-term perspective,” said Jatin Gedia, Sharekhan.
Rupak De, Senior Technical Analyst, LKP Securities said, “On the daily chart, Nifty is forming a bearish engulfing pattern, suggesting a possible bearish reversal in the market. The RSI is showing a negative divergence, indicating a shift in price momentum. Further, the daily RSI has entered a bearish crossover and broken out of the overbought zone. On the downside, support lies at 24,500, below which the index can fall to 24,400-24,200. On the upside, resistance lies at 24,650-24,700.” Having said that, here are some key indicators hinting at Monday’s move:
US Market:
U.S. stocks continued to fall on Friday as lingering disruptions linked to a global technology outage caused by a software glitch added uncertainty to an already jittery market.
A software glitch from cybersecurity firm CrowdStrike crashed Microsoft’s Windows operating system, causing a global tech outage that disrupted operations across multiple industries, including aviation, banking and healthcare.
All three major US stock indexes ended in negative territory, with the Dow Jones Industrial Average being the hardest hit.
European stocks:
European shares closed lower on the week, weighed down by selling in technology stocks, some weak earnings and a slide in commodity stocks, ending a tumultuous week marked by a global tech outage on Friday.
The pan-European STOXX 600 index fell 0.8% to its lowest in more than two weeks and posted a weekly drop of more than 2%, its biggest weekly drop so far this year.
Technical Perspective: Long Bear Candle
Nifty ended Friday’s trade down 270 points and formed a long bear candlestick on the daily chart and a shooting star candlestick on the weekly chart, suggesting temporary weakness in the near future.
The short-term trend of Nifty appears to have reversed from its all-time high. Candlestick patterns formed on the daily and weekly charts indicate further weakness in the market ahead. The next support to watch on the downside is near the 24,200 and 24,000 levels. The immediate resistance is at the 24,850 level, said Nagaraj Shetty, head of HDFC Securities.
Stocks exhibiting a bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) indicated bullish trading in exchanges such as Emami, Orchid Pharma, Bharti Hexacom and Global Offshore Services.
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 going forward:
MACD has shown bearish signs in stocks like OFSS, Abbott India, Blue Dart Express, Persistent Systems, Paytm, HUDCO, Sky Gold etc. The bearish crossover of MACD in these stocks indicates that the downward trend has just begun.
Most Active Stocks by Value:
Infosys (Rs 5,399 crore), RVNL (Rs 4,460 crore), Tata Teleservices (Rs 3,530 crore), HAL (Rs 3,113 crore), IRFC (Rs 2,576 crore), HDFC Bank (Rs 2,093 crore) and RIL (Rs 2,055 crore) were among the most active stocks in terms of value on the NSE. Stocks with high volume traded in terms of value help identify stocks with the highest trading volume for the day.
Most active stocks by trading volume:
Vodafone Idea (shares traded: 370 million), Tata Teleservices (shares traded: 334 million), YES Bank (shares traded: 167 million), IRFC (shares traded: 124 million), Tata Steel (shares traded: 78 million), RVNL (shares traded: 73 million) and NHPC (shares traded: 65 million) were among the most traded shares during the NSE trading session.
Stocks showing buying interest:
Shares of Tata Teleservices, Jubilant Life, Infosys, Kalpataru Power, Mufasis, AIA Engineering and Emami among others rose to their highest 52-week levels, indicating bullish sentiment and strong buying interest from market participants.
Stocks seeing selling pressure:
None of the major stocks hit 52-week lows on Friday.
Sentiment Meter Favors the Bears:
Overall, market breadth was in favor of the bears as 858 stocks rose and 3,071 fell.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not represent the views of The Economic Times)
