Here’s how analysts read the market pulse:
“Domestic indices pared their early gains despite strength in global peers. Weak November Mutual Fund inflow data and downbeat outlook by IT giant
led to some profit booking in the market,” Siddhartha Khemka, Head – Retail Research, , said.
“Nifty posted a negative weekly close in the last week after hitting an all-time high in the penultimate week. In the last session, the index breached the support zone of 18600-18500 on a closing basis. Thus, Nifty looks poised for a short-term consolidation. 18300-18650 is expected to be the short-term consolidation range,” Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by
, said.
That said, here’s a look at what some key indicators are suggesting for Monday’s action:
Wall Street falls as US inflation slows but remains hot
A choppy day of trading on Wall Street ended with stocks broadly lower Friday, after a new report showed that inflation is slowing less than hoped just days before Federal Reserve officials are expected to raise interest rates again.
The S&P 500 and Nasdaq composite each fell 0.7%, while the Dow Jones Industrial Average dropped 0.9%. Smaller company stocks fell even more, pulling the Russell 2000 index 1.2% lower. The indexes marked their first losing week in the last three.
European shares rise on China optimism
European shares rose on Friday as industrial and financial stocks gained on China-led optimism, but recession worries ahead of a slew of central bank decisions dragged the region-wide STOXX 600 index to a weekly loss after a seven-week rally.
The STOXX 600 closed 0.8% higher, snapping a five-day losing streak that was largely driven by concerns about an impending global recession due to sharp interest rate hikes by central banks.
Tech View: Long negative candle
Nifty, on the daily chart, formed a long negative candle with a minor lower shadow. Technically, this pattern indicates a downside breakout of the range-bound movement of the last few sessions. This is not a good sign and points towards more weakness in the short term.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of
, , , and Nureca, 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
, , Wipro, Mannapuram Finance and & Power, among others.
A Bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.
Most active stocks in value terms
(Rs 2,609 crore), BOB (Rs 1,896 crore), RIL (Rs 1,535 crore), Infosys (Rs 1,404 crore), and PNB (Rs 1,398 crore) 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 the highest trading turnovers in the day.
Most active stocks in volume terms
YES Bank (Shares traded: 132.2 crore), PNB (Shares traded: 24.29 crore), Central Bank (Shares traded: 22.73 crore),
(Shares traded: 13.77 crore) and IOB (Shares traded: 12.15 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of Yes Bank, Punjab &
, Central Bank, V-Guard and witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Shares of
hit their 52-week lows on Tuesday, which signals a bearish sentiment on the counter.
Sentiment meter favours bears
Overall, market breadth favoured bears as 1,207 stocks ended in the green, while 2,309 names settled with cuts.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
