Ahead of Market: 10 things that will decide D-St action on Monday

Driven by falling crude and commodity prices combined with a rally in global indices, the Nifty ended the week at 16,220.6, up 3%. When the market opens on Monday, shares of TCS and DMart will be under scrutiny as both announced their results after the market closed.

This is how analysts read the pulse of the market:

Ajit Mishra of

Broking said the last three weeks of the rally have certainly eased some of the pressure, but the signals are still mixed, continuing to cause erratic swings in the middle. In addition to concerns about the US recession, participants should brace for volatility on earnings, he said.

Deepak Jasani, head of retail research at HDFC Securities, said that after forming a short-term low at 15,183, the Nifty would need to move above 16,794 for the intermediate trend to turn up.

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

US stocks close flat after strong jobs data

Wall Street stocks fell to a lackluster close on Friday after employment data underscored the strength of the US labor market, but also hinted at more interest rate hikes from the Federal Reserve in the future.

Major indices swung through the day but still posted solid gains for the week as investors weighed optimism that the US economy can withstand higher borrowing costs against fears that the The Fed does too much to stifle growth and cause a recession.

The Dow Jones Industrial Average fell less than 0.2 percent to finish at 31,338.48, while the broad-based S&P 500 was down 0.1 percent at 3,899.38.

The tech-rich Nasdaq Composite Index added 0.1 percent to close at 11,635.31, capping five days of steady gains and posting a 4.6 percent gain for the week.

The US economy added 372,000 new jobs in June, nearly 100,000 more than economists forecast, and the jobless rate held steady at 3.6 percent, the Labor Department reported.



European stocks mark a strong end of the week

European stocks finished higher on Friday, recovering after hitting session lows after excellent US jobs data strengthened the case for another big interest rate hike by the Federal Reserve.

The STOXX 600 index for the entire continent closed 0.5% higher and ended the week 2.5% higher.

Automakers were the biggest gainers in the sector and gave the biggest boost to Germany’s DAX, which closed 1.3% higher to lead gains among regional peers.

technical view

Nifty50 formed a bearish candlestick on the daily chart that resembled a Hanging Man. The 50-pack index managed to close above the 16,200 level. Analysts said the momentum remains positive as long as the index remains above the 16,170 level.

Stocks showing a bullish bias

The Momentum Moving Average Convergence Divergence (MACD) indicator showed a bullish trade setup on the counters.

GSFC, , and Star Health.

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
Neither stock showed bearish signs on MACD.

Most active stocks in terms of value
RIL (Rs 2,100 crore), M&M (Rs 1,206 crore), L&T (Rs 1,092 crore),

(Rs 1,038 crore), HDFC (Rs 1,005 crore) and (Rs 997 crore) were among the most active stocks in NSE 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

ONGC (Shares traded: Rs 4.3 crore),

(Shares traded: Rs 2.5 crore), Tata Motors (Shares traded: Rs 2.4 crore), NTPC (Shares traded: Rs 1.5 crore), (Shares traded: Rs 1.5 crore) and (Shares traded: Rs 1.3 crore) were among the most traded shares in the session on NSE.

Stocks Showing Buying Interest

Actions of

, ITC and M&M witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.


Stocks experience selling pressure


Shares of MSTC Ltd, and NGL, among others, witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.


Sentiment meter favors bulls


Overall, the breadth of the market favored the winners, with 1,847 stocks ending in the green, while 1,425 names closed lower.

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

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