Here is how analysts read the pulse of the market:
Prashanth Tapse, VP (Research), Mehta Equities Ltd said: “Nifty’s biggest support is seen at 15,363 and below the same we can expect a cascade of selling. The major hurdle is seen at 15,807 and then all eyes will be on the 16,157 mark. We suspect Bank Nifty to outperform Nifty in next week’s trade.
Ajit Mishra, VP – Research, Religare Broking, said the market is seeing consolidation after the sharp drop and waiting for new triggers. “We like autos, consumer staples and pharmaceuticals for long trades, while metals and PSU banks may continue to underperform. We recommend maintaining a sector/stock specific approach and aligning positions accordingly.
That said, here’s a look at what some key indicators suggest for Monday’s action:
US stocks make big gains
Wall Street’s major indexes soared in a broad rally on Friday as signs of slowing economic growth and a recent pullback in commodity prices dampened expectations for the Federal Reserve’s rate hike plans. The S&P 500 rose more than 3% for its biggest one-day percentage gain since May 2020.
European stocks end higher
European stocks jumped 2.6% on Friday, pushing them into positive territory for the week as investors began to scale back central bank tightening bets, boosting inflows into risky assets. The pan-European STOXX 600 index marked its best session in more than three months.
Tech View: Harami candle on the weekly chart
Nifty50 has formed a small bullish candle on the daily chart. It ended up forming a “Harami” candle on the weekly chart. The weekly pattern is a bullish reversal pattern and it can be assumed that Nifty50 will see some upside in the coming days, independent analyst Manish Shah said.
Stocks Showing a Bullish Bias
The Momentum Moving Average Convergence Divergence (MACD) indicator showed a bullish trade setup on the counters of Nazara Tech, MMTC,
Strides Pharma, Hikal and .
The MACD is known to signal 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 upward movement and vice versa.
Stocks Signal Weakness Ahead
The MACD showed bearish signs on Westlife’s counters,
, , and . A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.
Most active stocks by value
(Rs 1,638 crore), (Rs 961 crore), Infosys (Rs 881 crore), (Rs 772 crore), M&M (Rs 770 crore) and (Rs 729 crore) were among the most active stocks on NSE in terms of value. Higher activity on a counter in terms of value can help identify counters with the highest turnover for the day.
Most active stocks by volume
ONGC (Shares traded: 2.5 crores), NTPC (Shares traded: 2.2 crores),
(Shares traded: 1.5 crore), (Shares traded: 1.2 crore), ICICI Bank (Shares traded: 1.1 crore) and SBI (Shares traded: 1.1 crore) were among the most traded stocks in the course of the session on NSE.
Stocks showing buying interest
M&M shares attracted strong buying interest from market participants as they hit new 52-week highs, signaling bullish sentiment.
Stocks are under selling pressure
Dhani ibull Ventures and GSPL witnessed strong selling pressure and reached their 52-week lows, signaling bearish sentiment on the meters.
Sentiment meter favors bulls
Overall, the breadth of the market favored the winners as 2,391 stocks ended in the green, while 932 names settled with cuts.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)