sensex | witty: Ahead of Market: 12 things that will decide the stock market action on Monday

NEW DELHI: The domestic equity market has seen some buying in recent weeks and the focus will now turn to earnings and the RBI policy meeting. Analysts believe rate-sensitive and IT stocks will be in the spotlight from Monday.

This is how analysts read the pulse of the market:

The long bullish candlestick on the daily chart indicated a breakout of the range-bound move and also immediate resistance at the 17,500 level, said Nagaraj Shetti, a technical research analyst at HDFC Securities.

Rupak De, Senior Technical Analyst at LKP Securities, said that the index has resistance at 17,750-17,800, so the index may move towards the 18,000 level. De sees support for the index at 17,500.

That said, here’s a look at what some of the key indicators for Monday’s action suggest:

Wall St posts modest gains
The S&P 500 rose modestly to start the second quarter on Friday as the monthly employment report indicated a strong job market and is likely to keep the Federal Reserve on track to maintain its aggressive policy stance.

European stocks rise
European stocks rose on Friday as a rally in banking and commodity-linked stocks helped overcome concerns about economic growth and inflation, with Europe remaining on alert over a disruption in gas imports from Russia.

Worries about the fallout from the war, compounded by the central bank’s likely tightening to control rising inflation, saw the pan-European STOXX 600 index post its first quarterly loss in two years last quarter.

Technical View: Bullish Candlestick
Nifty50 on Friday was up more than 1 percent and breached its 17,000-17,500 consolidation range with ease. The index formed bullish candles on both the daily and weekly scales, which suggests that the bulls are in the driver’s seat.

F&O: Support at 17,400
Options data suggests that 17,500 is emerging as the most immediate support level for the Nifty Index, while 18,000 is a resistance level that the index must address for any significant upside.

Stocks showing a bullish bias
The Momentum Moving Average Convergence Divergence (MACD) indicator showed a bullish trading setup on the counters of IOL Chemicals, Spandana Sphoorthy, Ujjivan Financial, Sunteck Realty, Hathway Cable and Hinduja Global.

The MACD is known for signaling trend changes in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the security’s price may see an upward move and vice versa.

Stocks signal weakness ahead
The MACD showed bearish signs on the counters of Nilkamal, Pfizer, Torrent Pharma, Timken India, Divi’s Labs and Tech Mahindra. The bearish cross on the MACD on these counters indicated that they have just started their downward journey.

Most active stocks in terms of value
Adani Power (Rs 2,753 crore), Tata Elxsi (Rs 1,264 crore), HDFC Bank (Rs 1,089 crore), Adani Wilmar (Rs 978 crore), Reliance Industries (Rs 966 crore) and SBI (Rs 933 crore) were among the most active shares in Dalal Street in terms of value. Higher activity in a counter in terms of value can help identify the counters with the highest turnover on the day.

Most active stocks in terms of volume
Vodafone Idea (shares traded: Rs 29 crore), Adani Power (shares traded: Rs 14 crore), YES Bank (shares traded: Rs 9 crore), BHEL (shares traded: Rs 8 crore), GTL Infra ( shares traded: Rs 7 crore) and IDFC First Bank (shares traded: Rs 7 crore) was among the most traded stocks on the NSE session.

Stocks Showing Buying Interest
GSFC, JK Paper, Rashtriya Chemicals, Gujarat Alkalies, Adani Gas and Power Grid all witnessed strong buying interest from market participants as they scaled their new 52-week highs, signaling bullish sentiment.

Stocks experience selling pressure
P&G Health witnessed heavy selling pressure and hit its 52-week lows, indicating bearish sentiment at the counters.

Sentiment meter favors bulls
Overall, the breadth of the market favored the winners, with 2,680 stocks ending in the green while 724 names closed lower.

Podcast: Is the momentum at Bank Nifty sustainable?
Jumping nearly 5% over the week, Bank Nifty outperformed most other sector indices. Axis Bank rallied more than 7%, while HDFC Bank and ICICI Bank soared 5% each for the week. So are investors liking bank stocks once again, or is it just a flash in the pan? In today’s special podcast with independent market expert Rajiv Nagpal, we try to understand what Bank Nifty traders should be doing this week.

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