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


NEW DELHI: Indian indices amid weak global signals continued to trade with losses in Friday’s trading session. Nifty at the close settled below the crucial 18,000 level. All sector indices ended in the red, while the Nifty FMCG index ended with marginal gains.

Here is how analysts read the pulse of the market:

“Nifty continued its bearish momentum for the third consecutive session on Friday and closed the day down 132 points. After opening with a positive note, Nifty attempted to move higher shortly after the open. hold the opening gains and sank into mid to late session weakness. The attempted intraday upside rally between the two was used as an upside selling opportunity,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

“The bears continue to hold the upper hand as the benchmark Nifty has been showing red candles for the past three days. The Nifty has found support around the previous low on the daily timeframe. The RSI momentum indicator ( 14) is in a bearish cross, suggesting weak near-term price momentum. Going forward, 17,770 should serve as support for Nifty’s fall, a decisive drop below said level could take the index towards 17,500. On the high end, resistance is visible at 18,000, above where a recovery may come,” Rupak De, Principal Technical Analyst at


That said, here’s a look at what some key indicators suggest for Monday’s action:

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The US market triggers a global recovery
Wall Street sparked a global rally in stocks on Friday after a crucial U.S. jobs report showed wage growth slowed in December, fueling investor bets on slowing inflation and on the fact that the Federal Reserve need not be as aggressive as some feared. Although the data showed a still-robust labor market, investors saw it as a sign that the US economy might be on the verge of a “soft landing” amid rising rates. On Wall Street, the S&P 500 jumped 2.3%, the Dow Jones Industrial Average 2.1% and the Nasdaq Composite 2.6%.

European stocks close at 7-month high
European stocks closed at seven-month highs on Friday, boosted by miners and oil stocks, while data indicating moderating job growth in the United States helped calm nerves on the trajectory of Federal Reserve rate hike. The pan-European Stoxx 600 index provisionally closed up 1.1%, marking a rise of 3.4% for the week – its best performance since mid-November. Britain’s FTSE 100 index hit a more than three-year high on Friday, boosted by miners and energy stocks.

Tech View: Negative candle
A long negative candle has formed on the daily chart, indicating a downward continuation pattern. Nifty reached previous swing low support of around 17780 levels and closed near the lows. The lack of a significant rally higher from support indicates more weakness ahead.

Stocks Showing a Bullish Bias
The Momentum Moving Average Convergence Divergence (MACD) indicator showed

ITC, RVNL and among others.

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 the SBI counters,

and NBCC (India).

A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks by value

(Rs 1764 crore), (Rs 1285 crore), (Rs 939 crore) and TCS (Rs 806 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

(Traded Shares: 22.13 crore), (Traded Shares: 11.41 crore) and IDBI Bank (Traded Shares: 10.07 crore) were among the most traded stocks during the session on NSE.

Stocks showing buying interest
Shares of

PFC, REC and RBL Bank hit their 52-week highs, signaling bullish sentiment at the counter.

Stocks are under selling pressure
Shares of

and among others hit their 52-week lows, signaling bearish sentiment on the counter.




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