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

NEW DELHI: Market movement remained subdued for another day on Wednesday, taking the losses to the third straight day. More selling can happen on Monday, caution analysts.

Here’s how analysts read the market pulse:-

The index was placed at the edge of the downside breakout of support at 17,450 level, said Nagaraj Shetti, Technical Research Analyst at HDFC Securities, who said a move below this area could open further weakness in the short term.

The Evening Star candle on the weekly chart indicates bearishness, said Yesha Shah of Samco Securities.

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

US stocks slide
Wall Street closed lower on Thursday at the end of a holiday-shortened week as bond yields resumed their uphill climb and investors contended with mixed earnings and economic data. The Dow Jones Industrial Average fell 113.36 points, or 0.33%, to 34,451.23, the S&P 500 lost 54 points, or 1.21%, to 4,392.59 and the Nasdaq Composite dropped 292.51 points, or 2.14%, to 13,351.08.

Euro STOXX 600 rises
The pan-European STOXX 600 index rose 0.67% and MSCI’s gauge of stocks across the globe shed 0.35%.

Tech View: Bearish candle
Nifty50 on Wednesday fell for the third straight session. It formed a bearish candle on the daily chart with an upper wick, suggesting some selling at highs. On the weekly scale, the index formed an Evening Doji Star-like candle, said analysts, who believe the index could be in for some more pain.

F&O: Support at 17,800
Open Interest (OI) data in the current April series for Nifty50 indicates a Short build-up, and signals from technical indicators suggest that Nifty is likely to trade in the range of 17250 – 17750, said Aamar Deo Singh, Head Advisory, Angel One.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Thermax, Torrent Pharma and P&> Hygiene.

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 signalling weakness ahead
The MACD showed bearish signs on the counters of Inox, GSFC, Poly Medicure, FACT, Gujarat Alkalies, Federal Bank and HEG. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms
HDFC Bank (Rs 2,135 crore), ICICI Bank (Rs 1,236 crore), Reliance Industries (Rs 1,226 crore), Infosys (Rs 1,093 crore), Adani Wilmar (Rs 1,054 crore), HDFC (Rs 1,021 crore) and Tata Power (Rs 867 crore) were among the most active stocks on Dalal Street in value terms. Higher activity on a counter in value terms can help identify counters with highest trading turnovers in the day.

Most active stocks in volume terms
Vodafone Idea (Shares traded: 13 crore), YES Bank (Shares traded: 7 crore), GTL Infra (Shares traded: 6 crore), Zomato (Shares traded: 5 crore), Redington India (Shares traded: 4 crore) and Suzlon India (Shares traded: 4 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Thermax, Credit Access Grameen, Welspun Corp, Gujarat Ambuja Exports, Magma Fincorp, Orient Refractories and JK Paper witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure
No stock witnessed strong selling pressure.

Sentiment meter favours bulls
Overall, the market breadth favoured gainers as 1,815 stocks ended in the green, while 1,589 names settled with cuts.

Podcast: How big is the attrition challenge for TCS, Infosys investors?

While TCS reported a 7.4 per cent YoY rise in consolidated net profit, Infosys recorded a 12 per cent YoY jump in profit last week. Revenue-wise also Infosys recorded higher growth than the largest IT player. In today’s special podcast with independent market expert Rajiv Nagpal, let’s go beyond headline numbers to understand the outlook on IT stocks and the reason why attrition rate has become a headache for investors.

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