The benchmark NSE Nifty 50 rose 0.33% to 25,235.9 and the S&P BSE Sensex rose 0.28% to 82,365.7, marking a 1.6% gain for the week and about 1% for August as a whole, marking the third consecutive weekly and third monthly gain.
Analysts are predicting the market trends as follows:
“Bulls are in complete control of the market at the moment and are entering buying positions on every dip. Support for Nifty currently lies at 25,175-200 and 25,000-24,950 levels. On the upside, immediate resistance for Nifty is at 25,250 levels and the next key resistance zone is at 25,450-500 levels. Overall, we expect further follow-on strength in today’s trading session,” said Tejas Shah, Technical Research, JM Financial & BlinkX. Rupak De, LKP Securities, said, “Market strength is likely to continue as long as the index remains above 25,000. A drop below this level may trigger a significant correction. On the upside, the current optimism may take the index towards 25,500 in the short term.”
That said, let’s take a look at what some key indicators suggest for Monday’s action.
US Market
The Nasdaq and S&P 500 closed higher on Friday, with shares of Tesla and Amazon rising after the latest U.S. economic data spurred hopes that the Federal Reserve will deliver a small interest rate cut in September.
U.S. consumer spending rose steadily in July, suggesting the economy remains strong while prices are rising modestly.
The S&P 500 rose 1.00% to finish at 5,647.60 points, the Nasdaq Composite Index rose 1.11% to 17,710.73 and the Dow Jones Industrial Average rose 0.52% to 41,549.91.
European stocks
European stocks rose to an all-time high on Friday, ending a turbulent month on an upbeat note after a sharp drop in euro zone inflation cemented market hopes of an interest rate cut in September.
The pan-European STOXX 600 index rose 0.1%, hitting an intraday high of 526.66 points before closing above 525 for the first time. The index rose 1.2% in August, its second consecutive monthly gain.
Spain’s IBEX 35 rose 0.4 percent after retail sales rose 1 percent in July, while Germany’s DAX closed flat after data showed a weaker-than-expected rise in the unemployment rate.
Technical Perspective: Rounded Bottom Pattern
Nifty ended Friday’s trade with a gain of 84 points and formed a rounded bottom pattern indicating strength on the daily chart. Based on this breakout, the index can move up towards 25,500 levels in the short term. If the index sustains above 25,500, Nifty can move towards the rounded bottom pattern target of 26,000-26,250 levels, said Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates.
“On the downside, the nine-day exponential moving average (DEMA) near 24,950 will act as immediate support for Nifty in the near term. As long as the index remains above 24,950, a ‘buy low’ strategy should be adopted,” he said.
Stocks Showing a Bullish Bias
Momentum indicator Moving Average Convergence Divergence (MACD) indicated bullish trading in stocks like Paytm, Safari Industries, Praj Industries, Prestige Estates, RVNL and Sapphire Foods.
Stock prices signal weakness ahead
The MACD showed bearish signs in stocks like Aster DM Healthcare, Bharat Forge, Inox Wind, Kfin Technologies, Aurobindo Pharma, Aegis Logistics etc. The bearish crossover of MACD in these stocks indicates that the downward trend has just begun.
Most Active Stocks by Value
HDFC Bank (Rs 36,481 crore), RVNL (Rs 7,350 crore), RIL (Rs 6,298 crore), Dixon Technologies (Rs 6,101 crore), Bharti Airtel (Rs 6,011 crore), Oil India (Rs 5,913 crore) and Prestige Estates (Rs 4,132 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
HDFC Bank (shares traded: 222 million shares), RVNL (shares traded: 122 million shares), Shree Renuka Sugar (shares traded: 113 million shares), YES Bank (shares traded: 111 million shares), Bandhan Bank (shares traded: 109 million shares), Oil India (shares traded: 709 million shares) and Suzlon Energy (shares traded: 540 million shares) were among the most traded stocks during the session on NSE.
Stocks showing buying interest
Shares like Triveni Engineering and Industries, Sundaram Finance, Radico Khaitan, Godfrey Phillips, GSPL, Safari Industries and KEC International rose to their highest 52-week levels, indicating bullish sentiment and strong buying interest from market participants.
Stocks under selling pressure
None of the major stocks hit 52-week lows on Friday.
Sentiment Meter Favors Bulls
Overall, market breadth was in favor of bulls as 2,157 stocks rose and 1,784 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)
