Stock Market: Ahead of Market: 12 things that will decide stock action on Monday
Here’s how analysts read the market pulse:-
Sameet Chavan of Angel Broking said Nifty ending above the 15,900 level bodes well for the bulls. “Now, the 16,000 level is merely a formality. We would see the index reaching the millstone in the first half of the forthcoming week itself,” Chavan said.
Gaurav Ratnaparkhi of Sharekhan said the index is expected to surpass the 16,000 mark and head towards 16,400 in the short term. “The daily momentum indicator and the daily Bollinger Bands are supporting the bullish stance,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Monday’s action:
US shares fall as Delta variant drives fears
Wall Street ended lower on Friday, weighed down by declines in Amazon, Apple and other heavyweight technology stocks, while investors worried about a rise in coronavirus cases tied to the highly contagious Delta variant. The Dow Jones Industrial Average fell 0.86% to end at 34,687.85 points, while the S&P 500 lost 0.75% to 4,327.16. The Nasdaq Composite dropped 0.8% to 14,427.24.
European shares post losses for third straight day
European stocks fell on Friday as a slide in Rio Tinto’s iron ore exports hammered mining majors, while strong earnings from luxury brands were overshadowed by concerns about their sustainability amid surging COVID-19 cases. The pan-European STOXX 600 index reversed early gains to end lower for a third straight session, down 0.3%, taking weekly losses to 0.6%.
F&O: Falling VIX helps bulls’ case
India VIX fell 4.60 per cent from 12.27 to 11.70 level. A decline in VIX has again provided stability to the market to commence the next move. On the options front, maximum Put Open Interest stood at 15,000 level followed by 15,500, while maximum Call OI was at 16,000 followed by 16,500 levels. Minor Call writing was seen at 16,300 and then 16,200 levels, while there was Put writing at 15,000 and then 15,400 levels. Options data suggested a shift in higher immediate trading range in between 15,700 and 16,000 and then 16,200 zones.
Tech View: Nifty may attempt 16,000 level now
Nifty50 on Friday hit an all-time high of 15,962, only to settle flat. But analysts took heart in the fact that the index managed to stay above the 15,900 level. They said the index may attempt to climb above the 16,000 level next week. For the day, the index formed a small bearish candle but made a bullish candle on the weekly chart. Mazhar Mohammad of Chartviewindia.in said even as the index remained lacklustre, the weekly move still looks advantageous for the bulls as Nifty50 has managed to sustain above the 15,900 level. The current breakout can be deemed to fail if the index closes below 15,850 level, he said.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Indus Towers, ITI, Glenmark Pharma, Power Finance, Biocon, Sequent Scientific, PetronetLNG, HDFC Bank, Tech Mahindra, GPT Infraprojects, Aurobindo Pharma, Liberty Shoes, HDFC Life Insurance, Man Industries, KPIT Technologies, Trigyn Technology, Welspun Enterprises, TVS Motor, Archies, Triveni Turbine, Rallis India, BF Investment, DCM Shriram, JTEKT India, Share India Securities, RPSG Ventures, Mastek, Lasa Supergenerics, TCI Express,
, Kajaria Ceramics, Kalyani Steel, , Nagreeka Exports, The Investment Trust, Tube Investments, Oriental Carbon, Agro Tech Foods.
The MACD is known for signalling 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 signalling weakness ahead
The MACD showed bearish signs on the counters of RBL Bank, SJVN, Rana Sugars,
, Emami, Trent, Jagran Prakashan, KCP, , Eveready Industries, Shalby, Torrent Pharma, Star Cement, Panama Petrochem, Stampede Capital, Dr. Lal Pathlabs, Heritage Foods, Emami Paper Mill, Ruchira Papers, Malu Paper Mills, Nesco, Borosil, Ajanta Pharma, Mohota Industries, Damodar Industries, Savita Oil Tech, TCNS Clothing, Jullundur Motor, Kothari Products, Premier Polyfilm, Tide Water Oil, Atul, TCPL Packaging, TCI Developers, Madhya Bharat Agro and NBI Industrial Finance. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Friday’s most active stocks in value terms
Wipro (Rs 2,131.61 cr), IRCTC (1,657.48 cr), Happiest Minds (Rs 1,371.84 cr)), HDFC AMC (Rs 1,088.15 cr), Tata Steel (Rs 1,079.94 cr), DLF (Rs 979 cr), Infosys (Rs 977.53 cr), HCL Tech (Rs 876.37 cr) and RIL (Rs 857.45 cr) were among the most active stocks on Dalal Street in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.
Friday’s most active stocks in volume terms
Vodafone Idea (Shares traded: 58.02 crore), YES Bank (Shares traded: 6.66 crore), National Aluminium (Shares traded: 5.03 crore), Bank of Baroda (Shares traded: 4.84 crore), JP Power (Shares traded: 4.52 crore), NMDC (Shares traded: 4.40 crore), PNB (Shares traded: 4.15 crore), South Indian Bank (Shares traded: 3.82 crore), Wipro (Shares traded: 3.69 crore) and
(Shares traded: 3.66 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Angel Broking, Cyient, Firstsource, Motilal Oswal and Syngene International witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Suryoday Small Finance Bank witnessed strong selling pressure and hit their 52-week low, signalling bearish sentiment.
Sentiment meter favours bulls
Overall, the market breadth remained in favour of the bulls. As many as 257 stocks on the BSE500 index settled the day in the green, while 239 settled the day in the red.
Podcast: Does market have enough liquidity to absorb mega IPOs?
Amid Zomato’s success, a slew of unicorn IPOs are slated to list on D-Street. Does the market have enough liquidity to absorb these maga IPOs? After hitting fresh highs, where will the market head now? What are the Nifty charts suggesting?