Ahead of Market: 10 things that will decide stock market action on Monday

The Indian stock market ended in green on Friday, lifted by buying in heavyweights Bharti Airtel, Reliance Industries and pharma stocks, with the Nifty index closing about 1% higher this week.

The benchmark S&P BSE Sensex gained 759.05 points or 0.96% to settle at 79,802.79, while the broader Nifty 50 index closed at 24,131.10, higher by 216.95 points or 0.91%.

Here’s how analysts read the market pulse:

Commenting on the day’s action, Jatin Gedia, analyst at Mirae Asset Sharekhan said Nifty opened on a flat note and witnessed a recovery after the steep decline in the previous trading session closing with a gain of ~217 points.

“On the daily charts we can observe that the Nifty did not witness follow through selling pressure from the previous trading session and in fact regained most of the lost ground. Both daily and hourly momentum indicators are now in sync. Thus, both price and momentum indicators point towards continuation of the upward move towards 24,400. On the downside 23800 is the crucial support zone,” Gedia said.

US Markets

Shares on the Wall Street notched record closing highs in a shortened Black Friday session, buoyed by technology stocks such as Nvidia, while retail was in focus as the holiday shopping season kicked off.The S&P 500 rose 0.56% to 6,032.44 points on Friday, while the Dow Jones Industrial Average climbed 0.42% to 44,910.65 points. The Nasdaq gained 0.83% at 19,218.17 points.

European Markets

Europe’s STOXX 600 ended the week on a high note, bolstered by a rally in tech stocks, while investors analysed the euro zone inflation report to assess the likelihood of a larger interest rate cut in December.

The pan-European main stock index reversed earlier losses and was up 0.6% at 510.25 points on Friday, logging its first monthly gain since August. It rose 1% in November. On a weekly basis, it logged a modest 0.2% decline.

Tech View

The Nifty opened flat, experienced considerable buying demand, and concluded the day on a high note around 24,131 levels, said Hrishikesh Yedve, analyst at Asit C. Mehta Investment Intermediates, adding that the volatility index India Vix cooled off by 5.12% to 14.43, indicating a drop in market volatility.

“Technically, on a daily chart, the Nifty has reclaimed the support of 21-Days exponential moving average (DEMA) and formed a green candle, which indicates strength. On the upside, the index will find immediate hurdles near 24,350-24,360 levels. The 21-DEMA is placed near 24,080, which will act as immediate support for the index followed by 23,570, where the 200-Days exponential moving average (DEMA) support is placed. As long as the index persists below 24,360, traders should focus on booking profits on bounce and wait for fresh breakout,” said Yedve.

Most active stocks in terms of turnover

Adani Green Energy (Rs 279.72 crore), Adani Enterprises (Rs 206.70 crore), Adani Energy Solutions (Rs 198.75 crore), Adani Power (Rs 151.91), Welspun Corp (Rs 124.10 crore), Reliance Industries Ltd (Rs 96.56 crore) and HDFC Bank (Rs 84.92 crore)

were among the most active stocks on BSE in value terms. Higher activity in 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 (Traded shares: 50.70 crore), Easy Trip Planners (Traded shares: 17.01 crore), YES Bank (Traded shares: 12.34 crore), Zomato (Traded shares: 7.34 crore), JP Power (Traded shares: 7.02 crore), Suzlon Energy (Traded shares: 5.48 crore), and Zee Entertainment Enterprises (Traded shares: 4.67 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of Adani Green Energy, Adani Energy Solutions, The Fertilisers and Chemicals Travancore, Easy Trip Planners, Piramal Pharma, Lloyds Metals & Energy and Sun Pharma Advanced Research were among the stocks that witnessed strong buying interest from market participants.

52-week high

Over 190 stocks hit their 52 week highs today while 24 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Lloyds Metals & Energy, Caplin Point Laboratories, Praj Industries, Laurus Labs, Dixon Technologies (India), eClerx Services, and KFIN Technologies.

Stocks seeing selling pressure

Among the large cap names was Colgate-Palmolive. Other stocks which witnessed significant selling pressure were CreditAccess Grameen, Poonawalla Fincorp, Triveni Turbine, Home First Finance, Godfrey Phillips, Bombay Burmah Trading.

Sentiment meter favours bulls

The market sentiments were bullish. Out of the 4,050 stocks that traded on the BSE on Friday, 1,642 stocks witnessed declines, 2,317 saw advances while 91 stocks remained unchanged.

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