Ahead of the market: 12 things that will decide Monday’s stock movement

New Delhi: The local stock market remains volatile as the battle between the bulls and the bears continues. There is a lot of stock-specific reaction to the market thanks to the ongoing earnings season. Analysts advise caution.

Here is how analysts read the pulse of the market:-

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the bearish engulfing pattern, which is framed within a broader range movement, is not significant.

On the weekly chart, says Mazhar Muhammad from Chartviewindia.in, the index is still consolidating between 17400 and 16800.

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

Wall Street closes sharply lower
Wall Street slid on Friday to its deepest daily loss since 2020, as Amazon slumped after a bleak quarterly report, and as the biggest increase in monthly inflation since 2005 frightened investors already worried about higher interest rates.

Earnings and tech rally lift European shares
European shares rose on Friday to their highest levels in a week as strong earnings reports and a rally in technology stocks boosted risk appetite at the end of a volatile month dominated by concerns about slowing global growth. The pan-European Stoxx 600 index rose 1.1 percent, trimming its monthly declines to 0.9 percent.

Technical View: Bullish candle
On Friday, Nifty50 formed a bearish engulfing pattern on the daily chart and settled below the 200 and 50 day simple moving averages. On the weekly scale, it formed a small bullish candle with a long upper wick, which indicates selling at higher levels.

F&O: Support at 17,000
According to options data, Nifty has support at 17100 followed by 17000 while immediate resistance spreads across the 17300-17500 range.

Stocks are showing a bullish bias
The Moving Average Convergence Divergence (MACD) indicator showed a bullish trade setup on the Shriram Transport Finance, GIC, New India Assurance, Shriram City Union, Sapphire Foods and Coforge counters.

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
The MACD indicator showed bearish signs on the counters of Shilpa Medicare, Lux Industries, Paytm, Aster DM Healthcare, Hastsun Agro and L&T Financial Holdings. A bearish crossover on the MACD on these counters indicates that they have just started their bearish journey.

Most active stocks by value
Adani Wilmar (Rs.2593 crore), Axis Bank (Rs.2554 crore), Reliance Industries (Rs.2369 crore), HDFC Bank (Rs.1975 crore), Infosys (Rs.1,550 crore), ICICI Bank (Rs.1,470 crore) and Adani Power (Rs. 1,279 crore) is 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
JP Power (shares traded: Rs 12 crore), TV18 Broadcast (shares traded: Rs 12 crore), Visehsh info (shares traded: Rs 10 crore), Vodafone Idea (shares traded: Rs 8 crore), YES Bank (shares traded: Rs. 8 crore) and Adani Power (Number of shares traded: Rs.5 crore) was among the most-traded stocks of the session on the New York Stock Exchange.

Stocks are showing buying interest
Varroc Engineering, MRPL, Angel Broking, Schaeffler India, Crisil, Varun beverages and Sun Pharma saw strong buying interest from market participants as they climbed to new 52-week highs, indicating an upward trend.

Stocks are under selling pressure
Dhani Services and Zomato saw strong selling pressure and hit 52-week lows, indicating bearish sentiment over the counters.

Feelings meter prefer bears
In general, the breadth of the market was in favor of the losers as 1185 shares closed with a gain, while 2195 names settled with decreases.

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