Before Market: Before Market: 10 Things You’ll Decide on Monday’s D-St

Here’s how analysts read the pulse of the market:

Ajit Mishra, Vice President of Research, Religare Broking, said the market has recovered more than 10 per cent from the bottom in the past five weeks and we are now little by little getting closer to the main hurdle of the previous swing high of 16800 in Nifty. “A decisive break above this level should keep the momentum going and help the index test 17400. In case of any consolidation, 16250-16500 area will act as support.”

Anand James, Chief Market Strategist at

said that while no significant declines are expected unless 16,485 is abandoned, the odds of that happening could rise in the next week if Nifty finds it unable to break out of the 16,690-710 region.

However, here’s a look at what some key pointers suggest for Monday’s action:

Wall Street closed lower
Stocks fell on Friday, giving up some of their gains earlier in the week as concerns grew about the global economy and earnings prospects at major internet companies.

The S&P 500 lost 0.9%, breaking a three-day rally that carried Wall Street to a six-week high. The Nasdaq Composite Index led the market lower with a 1.9% drop after worse-than-expected earnings reports from Snap, Seagate Technology and other technology-oriented companies.

The Dow Jones Industrial Average held up better, dropping a more modest 0.4%. That was in large part because its constituent American Express gave an encouraging earnings report and said its cardholders were spending more.

European stocks closed higher
European stocks had their best week in two months on Friday as concerns over the energy supply crisis eased, bringing some calm to investors worried about a sharp rise in interest rates and a political crisis in Italy.

The pan-European Stoxx 600 index closed up 0.3 percent at its highest level since June 10, while over the course of the week it jumped about 2.9 percent. Meanwhile, the euro came under pressure after a major survey indicated that the single currency area may be on the verge of recession due to falling demand and rising costs.

Technical View: Solid bullish candle on the weekly charts
Nifty50 formed a bullish candle on the daily chart and a solid bullish candle on the weekly scale. Analysts largely see the index’s resistance at 16800-850 levels. They see strong support for the index at the 16500 level.

Stocks show a bullish bias
The Moving Average Convergence Divergence (MACD) indicator showed a bullish trading setup on the Bosch counters,

Organic Soft, PVR, and Zomato.

MACD is known to indicate trend reversals in stock or traded indices. When the MACD crosses above the signal line, it gives a bullish signal, which indicates that the price of the security may experience an upward movement and vice versa.

Arrows indicate weakness in the future
MACD showed bearish signals on the KIMS, IOC and . counters

and Hemisphere properties.

A bearish crossover on the MACD on these counters indicates that they have just started their bearish journey.

Most active stocks by value
RIL (Rs 1,268 crore), Infosys (Rs 1,058 crore),

(Rs.979 crore), HDFC Bank (Rs.881 crore), and SBI (Rs.759 crore) were among the most active stocks in the NSE by value. The highest activity on the counter by value can help identify the counters with the highest turnover of the day.

Most active stocks by volume
SBI (Number of shares traded: Rs.1.5 crore), ICICI Bank (Number of shares traded: Rs.1.2 crore), ONGC (Number of shares traded: Rs.1.2 crore),

(Number of shares traded: Rs.1 crore), ITC (Number of shares traded: Rs.1 crore) and Axis Bank (Number of shares traded: Rs.9.7 crore) were among the most-traded stocks of the session on the New York Stock Exchange.

Stocks are showing buying interest
Shares of CG Power & Industrial Solutions,

M&M Financial, TVS Motor, Blue Dart and ITC all saw strong buying interest from market participants as they climbed to 52-week highs, indicating an upward trend.

Stocks are under selling pressure
shares

DRC Systems and Renaissance Global saw strong selling pressure and hit 52-week lows, indicating a downtrend over the counters.

The sentiment scale prefers bulls
Overall, the breadth of the market was in the winners’ favor as 1,744 shares closed higher, while 1,583 stocks settled with cutbacks.

(with input from agencies)


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