Manish Hathiramani, technical analyst with Deen Dayal Investments said, the support of 14,350 for Nifty50 was under threat but the market bounced from there. Caution must be exercised at the current juncture as the breaking of 14,350 could result in a precarious situation where Nifty can go down to test 14,000 almost instantaneously.
“The $1.9 trillion ‘American Rescue Plan’ failed to uplift the sentiment of the western market. Investors can resort to profit booking as the near future trend of the market will depend on budget expectations, stock wise Q3 result and foreign inflows,” said Vinod Nair, Head of Research at Geojit Financial services.
That said here’s a look at what some of the key indicators are suggesting for Monday’s action:
Wall Street closes lower as banks, energy shares tumble
Wall Street’s main indexes finished lower on Friday, weighed down by big U.S. banks after their earnings reports, while the energy fell sharply due to a regulatory probe into Exxon Mobil Corp. The Dow Jones Industrial Average fell 0.57% the S&P 500 lost 0.72% and the Nasdaq Composite dropped 0.87.
European stocks end four weeks of gains on lockdown, vaccine worries
European stocks snapped four weeks of gains on Friday, as the prospect of tighter lockdowns, slow vaccine shipments to the continent and resurgent coronavirus cases in China dampened hopes of a speedy economic recovery. The pan-European STOXX 600 index closed down 1% in its worst session since Dec. 21, with losses accelerating after Wall Street stocks tumbled following big bank earnings. The German DAX dropped 1.4% and France’s CAC 40 fell 1.2%. UK’s FTSE 100 declined 1%.
Tech View: Nifty forms Dragonfly Doji on weekly scale
A few analysts said Friday’s fall could just be a single-day affair, but for that to be true the index needs to close above the 14,500 level on Monday. Friday’s loss erased almost all the intra-week gains, which led to the formation of Gravestone Doji on the weekly scale, said Mazhar Mohammad of Chartviewindia.in.
Check out the candlestick formations in the latest trading sessions
ETMarkets.comF&O: Nifty negates higher lows
India VIX rose 4.61% from 23.02 to 24.09 levels. India VIX needs to cool down below 20 level to again get the bullish stance. On the options front, maximum Put Open Interest stood at 14,000 level followed by 13,500, while maximum Call OI was seen at 15,000 level followed by 14,500. There was Call writing at strike prices 14,500 and 14,600, while Put writing was seen at 13,500 and unwinding at 13,700. Options data suggested a wider trading range between 14,000 and 14,800 levels, while the immediate trading range stood between 14,300 and 14,600 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Friday showed bullish trade setup on the counters of Suven Pharmaceutical, Indian Hotels Company, Zodiac Clothing, IFB Industries, Prataap Snacks, Dynamatic Technologies and Rushil Decor.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Tata Motors, Tata Steel, Hindalco Industries, ICICI Bank, Apollo Tyres, NMDC Ltd, M&M Financial Services, Union Bank of India, Cadila Healthcare, Manappuram Finance, Aurobindo Pharma, Cipla, Ujjivan Small Finance Bank, Muthoot Finance, HDFC, among others.
Friday’s most active stocks
Tata Motors (Rs 6,387.72 crore), Bharti Airtel (Rs 3,393.58 crore), HCL Tech (Rs 2,400.26 crore), SAIL (Rs 2,268.83 crore), Infosys (Rs 2,031.93 crore), RIL (Rs 1,855.81 crore), Vodafone Idea (Rs 1,615.08 crore), Tata Steel (Rs 1,470.99 crore), TCS (Rs 1,339.07 crore) and ITC (Rs 1,258.57 crore) were among the most active stocks on Dalal Street on Friday in value terms.
Friday’s most active stocks in volume terms
Vodafone Idea (Shares traded: 122.45 crore), SAIL (Shares traded: 32.30 crore), Tata Motors (Shares traded: 25.00 crore), YES Bank (Shares traded: 16.35 crore), PNB (Shares traded: 14.28 crore), 3i Infotech (Shares traded: 13.35 crore), IDFC First Bank (Shares traded: 9.95 crore), Vikas Multicorp (Shares traded: 7.36 crore), Bank of Baroda (Shares traded: 6.11 crore) and ITC (Shares traded: 5.83 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Vodafone Idea, IFB Industries, Tata Motors, Ceat and IDFC First Bank witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Friday, signalling bullish sentiment.
Stocks seeing selling pressure
Godha Cabcon & Insulation, Jump Networks, Vishal Fabrics and Acrysil Ltd witnessed strong selling pressure in Friday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bears
Overall, market breadth remained in favour of bears. As many as 86 stocks on the BSE 500 index settled the day in green, while 413 settled the day in red.
Podcast: Should you sell stocks on vaccination news? >>>
Are traders trying to follow the strategy of ‘sell the news’ as the vaccination drive kicks off? Or are there other fear factors spooking the market? We find out this and more in today’s special podcast with independent market expert Rajiv Nagpal.
