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Indian equity indices extended their rally to record highs for a second session on Thursday, led by financials, while the US Federal Reserve Chair’s rate cut assurance supported sentiment.

The NSE Nifty 50 and BSE Sensex gained 0.69% and 0.51% this week, respectively, posting the fourth straight weekly gain, the best such streak in three months. The benchmarks gained about 3% each in four weeks.

Here’s how analysts read the market pulse:

“From a technical standpoint, the index has managed to hold the higher ground and dips augured well for the bulls, but the range is narrowing down as we head into uncharted territory, which might be a sign of caution for the coming period. For now, 22,250-22,200 is likely to be seen as intermediate support, followed by the strong support of 22,150 and finally, the psychological mark of 22,000 from a broader term view. On the higher end, finding resilience is challenging in uncharted territory, though 22,600-22,650 could be seen as the following potent targets for Nifty in the upcoming week,” said Osho Krishan, Angel One.

Tejas Shah, JM Financial & BlinkX said “Nifty tested the upper band of our target zone of 22,450-22,500. 22,250 and 22,000 are the important supports and till they remain intact, all dips should be bought into anticipating an eventual move into 23,000-23,100 levels on the higher side. Support for the Nifty is now seen at 22,425 and 22,250-300 levels. On the higher side, immediate resistance for Nifty is at 22,500-525 levels and the next resistance is at 22,700 Mark.”

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

US market

The S&P 500 and Nasdaq closed lower on Friday after touching record highs during the session, with high-flying chip stocks going into reverse and a mixed labor market report that showed more new jobs than expected with a rising unemployment rate. Artificial intelligence chip darling Nvidia closed down 5.6% to snap a six-session winning streak. Early in the session, it had been up more than 5%.The Dow Jones Industrial Average fell 0.18%, to 38,722, the S&P 500 lost 0.65%, to 5,123 and the Nasdaq Composite lost 1.16%, to 16,085.11.

European shares

Europe’s main stock indices were flat on Friday, but notched strong gains over the week that saw record highs from German and French shares. The pan-European STOXX 600 closed flat, notching an all-time high and its seventh straight weekly advance.
France’s benchmark CAC 40 hit a record high on Friday, while Germany’s DAX touched an all-time high in the previous session.

Tech View: Doji candle

Nifty on Thursday ended 19.5 points higher to form a Doji candle on the daily chart as it stayed below the psychological 22,500 mark, with call writers at the 22,500 strikes significantly increasing their positions.
In the case of a dip towards, 22,390 – 22,340 it should be used as a buying opportunity as key hourly moving averages are placed in this range and can attract buying interest. On the upside, 22,570 – 22,600 shall act as an immediate hurdle zone from a short-term perspective, said Jatin Gedia of Sharekhan.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Concord Biotech, Century Textiles, Infibeam Avenues, Alok Industries, Zee Entertainment Enterprises, and Chambal Fertilisers among others.

The MACD is known for signaling 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 signaling weakness ahead

The MACD showed bearish signs on the counters of Triveni Turbine, NCC, Piramal Enterprises, Allcargo Logistics, KEC International, and IGL among others. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks in value terms

HDFC Bank (Rs 3,566 crore), M&M (Rs 3,494 crore), Tata Steel (Rs 1,954 crore), Tata Motors (Rs 1,745 crore), RIL (Rs 1,236 crore), SBI (Rs 1,222 crore), and TCS (Rs 1,102 crore) among others 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

Tata Steel (Shares traded: 12.5 crore), HDFC Bank (Shares traded: 2.4 crore), ITC (Shares traded: 2.3 crore), M&M (Shares traded: 1.8 crore), Tata Motors (Shares traded: 1.7 crore), SBI (Shares traded: 1.5 crore), and Power Grid (Shares traded: 1.5 crore) among others were among the most traded stocks in the session on NSE.

Stocks showing buying interest

Shares of Tata Steel, Tata Consumer Products, Bajaj Auto, SBI, Bharti Airtel, Sun Pharma, and Power Grid among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure

Shares of KRBL and Orient Refractories hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bulls

Overall, market breadth favoured bulls as 2,077 stocks ended in the green, while 1,732 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 The Economic Times)

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