Stock Market: Ahead of the Market: 12 Things That Will Decide Stock Action Monday

NEW DELHI: Domestic stock markets ended a volatile week on a negative note. Selling of auto, FMCG, pharmaceutical and IT stocks hurt market sentiment, while real estate stocks ended negative.

Despite global concerns, markets are showing strong signs of resilience. However, much of the D-St action will depend on global and national signals.

This is how analysts read the pulse of the market:

Market analyst Chandan Taparia said that while small-bodied bearish candles were made on weekly and daily timeframes, follow-through on both sides was lacking. Nifty50, he said, has been stuck in a wider trading range of 17,000-17,400 for the past six sessions and holding above 17,100 can send it to 17,350 and 17,500 levels.

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

S&P 500 rises as financials gain on Treasury yields

The S&P 500 rose on Friday, with financial stocks gaining as the benchmark Treasury yield jumped to its highest level in nearly three years and offset declines in technology and other big growth names.

The Dow also rose, while the Nasdaq fell that day.

The financials sector of the S&P 500 rose about 1% and gave the S&P 500 its biggest boost, while the technology sector fell 0.4% and put the most pressure on the benchmark.

Investors are gauging how aggressive the Federal Reserve will be as it tightens policy after Federal Reserve Chairman Jerome Powell said this week that the central bank needed to act “quickly” to combat high inflation and raised the possibility of a 50 basis point increase in rates. In May.

European stocks close slightly higher

European markets closed slightly higher on Friday as investors continued to monitor the war in Ukraine and assess the outlook for global monetary policy. The pan-European STOXX 600 index also gained 0.11% but was down for the week.

Technical View: Bullish Candlestick

Nifty50 fell for the third day in a row on Friday and closed below its 50-day moving average. The index formed a bearish candle on the daily chart, with a downward wick, reflecting the support that the NSE barometer took intraday near its 200-day moving average.

F&O: Look for specific stock transactions

We started the week on a flat note and have been consolidating within a range throughout the week, said Ruchit Jain, Lead Research, 5paisa.com. “Until Nifty provides a breakdown of this range, traders should look for stock-specific trades where they see the best opportunities.”

Stocks showing a bullish bias

The Momentum Moving Average Convergence Divergence (MACD) indicator showed a bullish trading setup on counters from NCL India, Shyam Century Ferro, Supreme Engineering, Kalpataru Power, Praxis Home Retail and Universus Photo Imaging.

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 counters for Bajaj Hindusthan Sugar, Cipla, Birla Cables, Ruchi Soya Industries, Mangalam Global, Wonderla Holidays, Zuari Global and Page Industries. A bearish crossover on the MACD on these counters indicated that they had just started their downward journey.

Most active stocks in terms of value

Reliance Industries (1,704 crore), HDFC Bank (1,171 crore), JSW Steel (1,160 crore), ICICI Bank (1,069 crore), Tata Steel (936 crore), HDFC (786 crore Rs 786 crore) and ITC (Rs 786 crore) were among the most active stocks on Dalal Street in terms of value. Higher activity on a counter in terms of value can help identify the counters with the highest trading volumes on the day.

Most active stocks in terms of volume

ITC (Shares traded: Rs 2.92 crore), JSW Steel (Shares traded: Rs 1.61 crore), ICICI Bank (Shares traded: Rs 1.52 crore), Tata Motors (Shares traded: 1.51 crore), ONGC (Shares traded: Rs 1.36 crore), SBI (Shares traded: Rs 1.15 crore) and Hindalco (Shares traded: Rs 1.11 crore) were among the most traded stocks on the NSE session.

Stocks Showing Buying Interest

Tata Elxsi, Lemon Tree Hotels, Inox Leisure, Supreme Petrochem, Indian Hotels, Credit Access Gramin and Adani Total Gas all saw strong buying interest from market participants as they climbed to fresh 52-week highs, indicating a bullish sentiment.

Stocks experience selling pressure

Castrol India and Max Financial Services witnessed strong selling pressure and hit their 52-week lows, indicating bearish sentiment at the counters.

Sentiment meter favors bears

Overall, the breadth of the market favored the losers as 1,256 stocks ended in the green while 2,158 names closed lower.

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