Ahead of Market: 10 things that will decide stock action on Monday

The NSE Nifty 50 rose 0.41% to 24,304, while the BSE Sensex climbed 0.42% to 79,724, both breaking a two-day losing streak.

Here’s how analysts the market pulse:

“Nifty has formed an inside day pattern on the daily chart and remains below the crucial 20 and 50 SMAs, with a bearish crossover of the same. It has been a muted week with mild recovery in stocks, as the number of stocks above the short-term 10 and 20 moving averages saw an uptick. However, on a higher timeframe, the breadth largely remains negative, while the 20-day advance-decline continues to be in oversold levels,” said Lovelesh Sharma of SAS Online

“Price action on the lower timeframe suggests a contraction in price action, with a range between 24,500 and 24,150. In a lower highs, lower lows formation with multiple resistances at higher levels, the price suggests 24,500 as the line in the sand for bears to hold. The 20 and 50 SMAs are placed at 24,330 to 24,344, respectively. So, multiple resistances, along with a global event, make key data such as price and OI very important,” Lovelesh said.

That said, here’s a look at what some key indicators are suggesting for Monday’s action:

US market:

Wall Street’s major indexes ended higher on Friday, rebounding from the previous day’s sell-off as Amazon’s strong earnings countered a significant drop in U.S. job growth in October.Amazon.com rose after it reported earnings on Thursday that revealed strong retail sales, boosting profit above Wall Street estimates.The S&P 500 gained 0.40% to end at 5,728 points, while the Nasdaq Composite gained 0.80% to 18,239.. The Dow Jones Industrial Average rose 0.70% to 42,053.

European shares:

Europe’s main stock index notched its biggest one-day gain in five weeks on Friday, as banks led an overall market rebound after recent declines, with investors assessing economic data, corporate earnings and the upcoming U.S. elections.

The pan-European STOXX 600 index closed 1.1% higher, after losing nearly 3% over the past three days, but still logged a weekly decline.

Tech View:

Sentiment may continue to remain weak as long as Nifty stays below 24,500, with any rise toward this level likely facing selling pressure. On the downside, support is placed at 24,000, while resistance levels are seen at 24,500 and 24,750.

Stocks showing bullish bias:

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Jubilant Pharmova, IIFL Finance, Bharat Dynamics, Chalet Hotels, Birla Corporation, and JK Lakshmi Cement among others.

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

Stocks signaling weakness ahead:

The MACD showed bearish signs on the counters of ICICI Prudential Life, Cigniti Technologies, and Systematix Corporate Services among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms:

Zomato (Rs 322 crore), Piramal Pharma (Rs 307 crore), M&M (Rs 296 crore), RIL (Rs 283 crore), Tata Motors (Rs 244 crore), PNB (Rs 237 crore), and BSE (Rs 227 crore) among others were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.

Most active stocks in volume terms:

Vodafone Idea (Shares traded: 24.7 crore), PNB (Shares traded: 2.3 crore), YES Bank (Shares traded: 1.7 crore), IDFC First Bank (Shares traded: 1.5 crore), Suzlon Energy (Shares traded: 1.5 crore), Zomato (Shares traded: 1.3 crore), and JP Power (Shares traded: 1.1 crore) among others were among the most traded stocks in the session on NSE.

Stocks showing buying interest:

Shares of Poly Medicure, Jubilant Pharmova, Piramal Pharma, UTI AMC, ABSL AMC, Fortis Healthcare, and Suven Pharma among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure:

No major stocks hit their 52-week lows on Friday.

Sentiment meter bulls:

Overall, market breadth favoured bulls as 3,046 stocks ended in the green, while 536 names settled in the red.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)