Here’s what analysts are predicting for the market:
“Going forward, the benchmark index is likely to stabilise following the recent uptrend and is expected to find support in the range of 23,700-23,900 on the downside. Banking stocks are currently trending stable while sectors like IT, energy and FMCG are lifting the index. We expect a similar market trend in the coming sessions as well and traders will need to strategise accordingly,” said Ajit Mishra, SVP, Research, Religare Broking.
“The underlying currents are benign and we do not see any major risks to the domestic market in the near term. In the medium term, focus will be on the Union Budget which will determine the market,” said Vinod Nair, head of research at Geojit Financial Services.
That said, let’s take a look at what some key indicators suggest for Monday’s action.
US Market:
U.S. stocks ended lower on Friday, stalling early gains as investors digested expected inflation data and factored in political uncertainty following the presidential debate. The Dow Jones Industrial Average fell 41.12 points, or 0.11%, to 39,122.94. The S&P 500 fell 22.57 points, or 0.41%, to 5,460.30 and the Nasdaq Composite Index fell 126.08 points, or 0.71%, to 17,732.60.
European stocks:
European stocks gave up early gains and closed lower on Friday, weighed down by a drop in cosmetics giant L’Oreal’s shares, while political uncertainty in France led to benchmark indexes posting weekly, monthly and quarterly losses.
The pan-European STOXX 600 index closed down 0.2%, marking its fourth consecutive trading day of declines.
Technical view:
The sharply rallying Nifty is now struggling at resistance levels of 24,000-24,100. Any dip from here is likely to present a buying opportunity. Nagaraj Shetty of HDFC Securities said immediate support lies at 23,800 levels.
Stocks exhibiting a bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) indicated bullish trading in stocks like CDSL, IGL, GE Shipping, Lupin, Aegis Logistics and Tata Motors.
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 going forward:
MACD showed bearish signs in stocks like EID Parry AU Small Finance Bank, Phoenix Mills, Safari Industries, Latent View Analytics, India Energy Exchange etc. The bearish crossover of MACD in these stocks indicated that the downward trend has just begun.
Most Active Stocks by Value:
Polycab India (Rs 5,928 crore), CDSL (Rs 4,945 crore), RIL (Rs 4,518 crore), Bharti Airtel (Rs 4,283 crore), Vodafone Idea (Rs 3,658 crore), Indus Towers (Rs 2,386 crore) and Mazagon Dock Ship (Rs 2,514 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 active stocks by trading volume:
Vodafone Idea (shares traded: 20.1 crore), YES Bank (shares traded: 127 million), PNB (shares traded: 121 million), HFCL (shares traded: 76 million), Indus Towers (shares traded: 75 million), SAIL (shares traded: 72 million) and India Cements (shares traded: 58 million) were some of the most traded stocks during the session on NSE.
Stocks showing buying interest:
Shares of CDSL, Chola Fin Holdings, Bombay Burmah, Praj Industries, Mahanagar Gas, Kalyan Jewellers and 360 One Wam hit their highest 52-week levels, indicating bullish sentiment and strong buying interest from market participants.
Stocks seeing selling pressure:
No companies hit a 52-week low on Friday.
Sentiment Meter Favors the Bears:
Overall, market breadth was in favor of bulls as 2,133 stocks rose and 1,768 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)
