Both the benchmarks added 1.24% and 0.9% for the week, posting an eighth week of gains.
Here’s how analysts the market pulse:
“Nifty has experienced a downward consolidation breakout on the daily chart, suggesting a rise in optimism. A sustained trade above the very short-term moving average, the 21 EMA, gave the index bulls the strength to take the Nifty to new highs amid global market weakness. A fairly large green candle after several insignificant candles clearly signals a bullish trend ahead. The trend might remain positive as long as it stays above 24,500. On the higher end, the index might move towards 25,250,” said Rupak De of LKP Securities.
Jatin Gedia of Sharekhan, said, “This current up move can extend towards 25350 – 25530. Support base now stands at 24400 which is the 20-day moving average. The daily momentum indicator still has a negative crossover, however we shall assign more weightage to the price action and ride the up move.”
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 as investors flock back to tech megacaps that had triggered broad sell-offs earlier in the week, and inflation data boosted optimism that the Federal Reserve will soon commence cutting interest rates.
On Friday, the S&P 500 gained 1.11%, at 5,459 points, while the Nasdaq Composite climbed 176 points, or 1.03%, to 17,357. The Dow Jones Industrial Average rose 654 points, or 1.64%, to 40,589.
For the week, the Dow gained 0.75%, while the S&P 500 declined 0.82% and the Nasdaq dropped 2.08%.
European shares:
European shares closed higher on Friday, boosted by an earnings-driven advance across several sectors including luxury, while global markets remained stable after data showed an improving U.S. inflation picture.
The pan-European STOXX 600 index closed 0.8% higher after hitting a more than two-month low in the previous session, logging a marginal weekly advance of about 0.5%.
A gauge of 10 of Europe’s biggest luxury names advanced 2.9%, logging its biggest single-day jump in six months.
Tech View: long bull candle
Nifty ended Friday’s session 429 points higher to form a long bull candle on the daily chart to signal a decisive upside reversal in the market post downward correction.
The immediate supports like 10/20-day EMAs have been regained after violating below it recently. These moving averages have been offering support for the index in the last 5-6 weeks. The positive chart pattern like higher tops and bottoms is intact on the daily chart and Nifty seems to have confirmed a new higher bottom formation recently, said Nagaraj Shetti of HDFC Securities.
The next upside levels to be watched are around 25000-25100 in the near term. Immediate support is placed at 24650 levels, he said.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Indian Hotels, AstraZeneca, ICICI Prudential Life Insurance, AU Small Finance Bank, JM Financial, and Nuvama Wealth Management 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 SJVN, Bharti Airtel, Apollo Hospital, SBI, Metro Brands, and Sumitomo Chemical 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:
HDFC Bank (Rs 3,525 crore), Tata Motors (Rs 2,340 crore), ICICI Bank (Rs 2,320 crore), Axis Bank (Rs 2,174 crore), Infosys (Rs 2,128 crore), Shriram Finance (Rs 1,850 crore), and SJVN (Rs 1,613 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: 74.6 crore), YES Bank (Shares traded: 12 crore), SJVN (Shares traded: 10.5 crore), MMTC (Shares traded: 10.4 crore), IDBI Bank (Shares traded: 8.7 crore), NHPC (Shares traded: 7.4 crore), and Suzlon Energy (Shares traded: 6.7 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Mphasis, Ashok Leyland, Divis Labs, Cipla, PI Industries, Indus Towers, and Firstsource 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 shares hit their 52-week low on Friday
Sentiment meter favours bulls:
Overall, market breadth favoured bulls as 2,595 stocks ended in the green, while 1,354 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)
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