NEW DELHI:
Nifty formed a
Doji candle on the daily chart on Friday, indicating an indecisive setup going into the new week.
Chandan Taparia of Motilal Oswal Financial Services said Nifty has to hold above 10,700 level to extend its move towards 11,000, while key support exists at 10,650 and then 10,550 levels.
Mazhar Mohammad of Chartviewindia.in said a break below 10,676 level could trigger a fresh leg of short-term downswing with an initial target of 10,480. The upside target for the index can be around 11,250 level.
Gaurav Ratnaparkhi of Sharekhan said the index seems to be in a process of forming a distribution below its 200-DMA. The 10,676 and 10,850 levels will continue to act as key support and resistance, respectively. “The lower end of the range is a swing low and is the critical level to keep a tab on,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Monday’s market action:
US stocks continue to reflect optimism
Wall Street continues to cling to optimism on Friday and the Dow gained another 369 points, or 1.4 per cent, to 26,075, while S&P500 gained just over 1 per cent. The big winner of the day was the tech-heavy Nasdaq, which jumped 69.69 points to 10,617, another record close
European shares bounce back
European stocks close slightly higher on Friday following Thursday’s sharp sell-off. The pan-European Stoxx 600 closed 0.1% higher, with most sectors and major bourses in positive territory. FTSE rose 0.76 per cent, the DAX 1.15 per cent and CAC 1.01 per cent.
Tech View: Key resistance in 10,847-10,884 zone
Nifty50 resumed its uptrend on Thursday after snapping a five-day winning streak on the previous day. In the process, the index reclaimed the 10,800 mark and formed an Inside Bar on the daily chart. The index faces the next resistance in the 10,847-10,884 zone.
F&O: Nifty trading range widens
India VIX fell 4.55 per cent to 24.91 level. Lower volatility suggests an overall bullish stance, and the buy on decline strategy can continue. On Friday, there was Call writing at 11,500 and then 11,400 levels and Put writing was seen at 10,600 and 10,400 levels. Options data suggested a wider trading range between 10,500 and 11,200 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Friday showed bullish trade setup on the counters of Firstsource Solution, Granules India, Biocon, United Spirits, Poly Medicure, Elgi Equipments, Caplin Point Lab, Hercules Hoists, Pidilite Industries, V-Guard, Neuland Laboratories, Fairchem Speciality, Metropolis Healthcare, Inspirisys Solutions, Grindwell Norton, Hindustan Composites, Tainwala Chem, Cubex Tubings, Bhagyanagar Properties, TCNS Clothing, Sreeleathers, Tide Water Oil, Cera Sanitaryware and Kapston Facilities.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of L&T Finance Holdings, Apollo Tyres, LIC Housing, Rail Vikas Nigam, ICICI Pru Life, Titan Company, Bharat Forge, Adani Enterprises, Cummins India, JK Paper, Tata Coffee, Mishra Dhatu Nigam, ACC, United Breweries, KRBL, Tata Elxsi, FACT, IDBI Bank, Gujarat Pipavav Port, Patel Engg., Triveni Turbine and Tata Steel, among others.
Most active stocks in value terms
Bajaj Finance (Rs 5379.71 crore) , RIL (Rs 3753.89 crore) , SBI (Rs 2210.09 crore) , TCS (Rs 2124.50 crore) , IndusInd Bank (Rs 1461.37 crore) , Axis Bank (Rs 1137.19 crore) , ICICI Bank (Rs 1011.20 crore) , HDFC Bank (Rs 973.18 crore) , Vodafone Idea (Rs 866.79 crore) and Bajaj Finserv (Rs 797.98 crore) were among the most active stocks on Dalal Street on Friday in value terms.
Most active stocks in volume terms
Vodafone Idea (shares traded: 92.41 crore) , Alok Industries (shares traded: 12.02 crore) , SBI (shares traded: 11.13 crore) , PNB (shares traded: 10.17 crore) , Uttam Value Steel (shares traded: 8.93 crore) , Reliance Power (shares traded: 8.15 crore) , Tata Motors (shares traded: 6.47 crore) , Suzlon Energy (shares traded: 6.39 crore) , SAIL (shares traded: 5.97 crore) and YES Bank (shares traded: 5.42 crore) were among the most traded stocks in the session.
Stocks seeing buying interest
IOL Chemicals, Bharat Rasayan, Laurus Labs, Granules India and RIL witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Friday signalling bullish sentiment.
Stocks seeing selling pressure
ABM International, Univastu India, Mittal Life Style and Omaxe witnessed strong selling pressure in Friday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours the bears
Overall, market breadth remained in favour of bears. As many as 150 stocks on the BSE 500 index settled the day in green, while 350 settled the day in red.
Podcast: Is it a good market for contra investing?
Contrarian investing means going against the wind. Amid the ongoing uncertainty in the stock market, investors are betting on select largecaps trying to protect capital and achieve higher returns. In the broader market, many stocks have become highly undervalued and attractive buying opportunities are going abegging. Should one start looking for contrarian bets in this market? Listen in
>>>