Here’s how analysts read the market pulse:
That said, here’s a look at what some key indicators are suggesting for Monday’s action:
US market
US stocks ended mixed on Friday, with the Dow Jones Industrial Average rising marginally to notch its 10th straight day of advances, its longest rally in almost six years.
European Shares
European shares rose on Friday to end the week higher, while German stocks lagged as SAP’s bleak revenue forecast weighed on the tech sector, which also recorded its biggest weekly drop this year.
The pan-European STOXX 600 index edged 0.3% higher, rising for the fourth straight session.
Tech View: Small negative candle
A small negative candle was formed on the daily chart at the lows with an upper shadow. Technically, this pattern indicates a short-term top reversal pattern. But, we need confirmation of follow-through weakness to call it a downward reversal pattern. As long as Friday’s downside gap remains unfilled at 19965 levels, the chances of further consolidation/weakness in the short term.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of IRFC, Reliance Power, Tanla Platforms, Parag Milk Foods and L&T among others.
Stocks signaling weakness ahead
The MACD showed bearish signs on the counters of South Indian Bank, RIL, Coffee Day Enterprises, Kalyan Jewellers, and GMR Infra, among others.
A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
Infosys (Rs 6073 crore), RIL( Rs 3857 crore), HDFC Bank (Rs 3543 crore) and ICICI Bank (Rs 1681 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: 24.26 crore), RVNL (Shares traded:10.3 crore), IRFC (Shares traded: 17.28 crore), Vodafone Idea (Shares traded: 18.2 crore), and Reliance Power (Shares traded: 17.12 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of Tanla Solutions, IndiaMART InterMESH, Rites, and Jindal Saw, among others, witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Shares of Atul, Cell Point (India), Atam Valves and Jet Airways, among others, stocks that hit their 52-week lows, signalling bearish sentiment on the counters.
Sentiment meter favours bears
Overall, market breadth favoured bears as 1,530 stocks ended in the green, while 1,854 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 Economic Times)
