Ahead of Market: 12 things that will decide stock action on Monday

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NEW DELHI: Nifty formed a Doji Cross candle on the daily chart as 15,900 continued to act as an immediate resistance level. Analysts said a move past the said level would be a test for the Nifty50 bulls.

Here’s how analysts read the market pulse:-

Mazhar Mohammad of Chartviewindia.in said crossing the 15,900 level can give much-needed confidence to the bulls who can get the courage to march towards 16,300 level. “It would be critical for the bulls to sustain above the 15,768 level to retain a positive bias,” he said.

Independent analyst Manish Shah said that a close above 15,880 will be the first sign that the gap area of 15,880-15,840 is closed and the market could move higher.

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

US shares surge to all-time closing high

Wall Street gained ground for the fourth straight session on Friday, extending a rally that pushed all three major U.S. stock indexes to record closing highs as upbeat earnings and signs of economic revival fueled investor risk appetite. The Dow rose 235 points to close above 35,000 for the first time ever. The S&P 500 gained 44.31 points, or 1.01 per cent, to 4,411.79 and the Nasdaq Composite added 152.39 points, or 1.04 per cent, to 14,836.99.

European shares rise to record highs

European stocks closed at all-time highs on Friday as optimism about the earnings season and the European Central Bank’s pledge of continued monetary support outweighed risks of a resurgence in COVID-19 cases. The pan-European STOXX 600 index rallied 1.1 per cent to hit a record high of 461.75, and marked a 1.5 per cent weekly rise – its biggest weekly gain since early May.

Tech View: Nifty’s struggle with 15,900 continues

Nifty50 on Friday closed where it opened, making a Doji Cross candle on the daily chart. The chart pattern suggested indecisiveness among traders at the immediate resistance of 15,900 level. Nifty50’s struggle with the 15,900 level was clearly reflected in Friday’s intraday high of 15,899.80! On the weekly scale, the index formed a Bullish Hammer candle. It was the fourth straight week when the index traded in a tight range. A move past 15,900 would be a test for the Nifty50 bulls, analysts said.

Check out the candlestick formations in the latest trading sessions

ETMarkets.com

F&O: Falling VIX indicates bulls in command

India VIX fell 0.99 per cent from 11.88 to 11.76 level. Every decline in the volatility indicates that the bulls are again holding command and buying interest is seen at every meaningful decline. Options data suggested an immediate trading range between 15,700 and 16,000 levels.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of ICICI Bank, Tata Coffee, Hindustan Copper, Sun Pharma Advanced, Bharat Petroleum, GSFC, Tamilnadu Petroprod, CCL Products India, HSIL, Jocil,

, Apollo Pipes, Mahindra Logistics, Umang Dairies, Eveready Industries, GFL, Phoenix Mills, SKF India, The United Nilgiri, Solara Active Pharma, Adani Green Energy, Superhouse, , Wendt India, IFB Industries, Ganesha Ecosphere, Tara Chand Logistic, JSW Holdings, Nalwa Sons Investment, Creative Eye and Kapston Facilities.

The MACD is known for signalling 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 signalling weakness ahead

The MACD showed bearish signs on the counters of National Aluminium, Au Small Finance Bank, ICICI Securities, Rallis India, ITD Cementation,

, Shalimar Paints, VLS Finance, The Ramco Cements, Om Infra, Triveni Turbine, CESC, Bharat Road Network, NDTV, HG Infra Engineering, Bajaj Holdings, Hercules Hoists, V2 Retail, TD Power Systems, Ganesh Housing, JK Cement, Prataap Snacks, Nagreeka Exports, Maan Aluminium, Matrimony.com, Honda India Power, SIL Investments, WABCO India and NBI Industrial Finance. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms

Zomato (Rs 8,625.04 crore), Bharti Airtel (Rs 1,792.98 crore), Mphasis (Rs 1,634.77 crore), ICICI Bank (Rs 1,290.19 crore), Jubilant Food (Rs 1,245.87 crore), Tata Steel (Rs 1,110.19 crore), Tata Motors (Rs 991.65 crore), Vodafone Idea (Rs 978.13 crore), SAIL (Rs 975.59 crore) and RIL (Rs 971.78 crore) were among the most active stocks on Dalal Street in value terms. Higher activity on 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 (Shares traded: 114.80 crore), Zomato (Shares traded: 69.49 crore), Vikas Multicorp (Shares traded: 7.95 crore), SAIL (Shares traded: 7.58 crore), YES Bank (Shares traded: 6.78 crore), Federal Bank (Shares traded: 5.21 crore), NMDC (Shares traded: 4.81 crore), JP Power (Shares traded: 4.54 crore), ITC (Shares traded: 4.45 crore) and PNB (Shares traded: 4.30 crore) were among the most traded stocks in the session.

Stocks showing buying interest

ACC, Arvind Fashions, Coforge, Godrej Consumer Products, Schaeffler India, JSW Energy, Persistent System and

witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Saturday, signalling bullish sentiment.

Stocks seeing selling pressure

Akg Exim, Keerti Knowledge and Skills and Madhav Copper witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.

Sentiment meter favours bears

Overall, the market breadth remained in favour of the bulls. As many as 214 stocks on the BSE500 index settled the day in the green, while 285 settled the day in the red.

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