Going ahead, 15,000-15,050 will be the immediate hurdle zone to watch out for. Once that gets taken out, the index will be set to test the swing high of 15,273. On the other hand, 14,860-14,800 will act as a crucial support zone for the index, said Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.
“Domestic markets echoed the global sentiments led by consolidation in the global market. Confusion persists in the global market ahead of the Fed policy meet, as the market expects confirmation on maintaining its super accommodative stance in a rising bond yield market,” 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 surges on jobs data
Wall Street rose on Friday as investors cheered signs of economic strength in a report that showed faster-than-expected U.S. jobs growth, data that initially stoked inflation concerns. All Wall Street’s main indexes closed higher, bouncing back from early losses. Investors were spooked this week by rising interest rates, which offset optimism about an economic rebound. The Dow Jones Industrial Average rose 1.85%, the S&P 500 gained 1.95%, and the Nasdaq Composite 1.55%.
European stocks pressured by yields, but mark weekly gains on firm cyclicals
European equities closed lower on Friday as bond yields rose on inflation expectations that were pushed up by strong U.S. payrolls data, although the STOXX 600 index marked a weekly gain on strength in growth-sensitive sectors. The
pan-European STOXX 600 dropped 0.8% on the day, with shares of travel and financial services firms leading losses. London’s FTSE 100 Index edged 0.31 per cent lower, while Germany’s DAX dropped almost 1%.
Tech View: Nifty50 loses its crucial support
Analysts said the index is likely to test lower levels in the coming days. “Momentum indicator RSI has turned down from the crucial upper end of the bear territory i.e. 60 on two occasions now, clearly indicating that the uptrend is losing momentum and if the bears push Nifty50 below 14,870 level, it can slide lower to the 14,770-14,650 zone,” said Aditya Agarwala of YES Securities.
Check out the candlestick formations in the latest trading sessions
ETMarkets.comF&O: Nifty seeing tussle between bulls & bears
India VIX moved up 5.84% from 24.15 to 25.16 levels. It is turning highly volatile in a broad range between 21.80 and 29.64 level since the last nine sessions. VIX needs to cool down below the 21-20 zone for the bullish grip to continue. On the options front, maximum Put Open Interest stood at 14,000 level followed by 14,500, while maximum Call OI exists at 16,000 and 15,000 levels. The index saw Call writing at 15,500 and then 15,000 levels while Put writing was seen at 14,000 and 145,00 levels. Options data suggested a wider trading range between 14,500 and 15,500 levels, while the immediate trading range exists between 14,750 and 15,250 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Friday showed bullish trade setup on the counters of SJVN, Lemon Tree Hotels, Cadila Healthcare, UltraTech Cement, Maruti Suzuki, Avenue Supermarts, MSTC, PVR, Pitti Engineering, ICICI Lombard, Pidilite Industries, Precision Wires, Can Fin Homes, Mahindra Logistics, Century Enka, Amrutanjan HealthCare, AIA Engineering, Future Enterprises and V Mart Retail.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Punjab National Bank, Wipro, Apollo Tyres, Jindal Steel & Power, Indian Overseas Bank, JSW Steel, Rail Vikas Nigam, Karnataka Bank, Tata Consumer Products, SBI Card, Schneider Electric, Muthoot Finance, Magma Fincorp, Minda Corporation, PNB Housing Finance, Suven Life Sciences, Repco Home Finance, TV Today Network and TTK Prestige.
Friday’s most active stocks
Tata Motors (Rs 2,853.97 crore), SBI (Rs 2,776.37 crore), RIL (Rs 2,571.76 crore), Wipro (Rs 1,872.30 crore), ICICI Bank (Rs 1,622.85 crore), IndusInd Bank (Rs 1,457.97 crore), Heranba Industries Ltd. (Rs 1,436.80 crore), HDFC Bank (Rs 1,337.06 crore), Adani Ports SEZ (Rs 1,321.89 crore) and Maruti Suzuki (Rs 1,317.95 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: 29.44 crore), PNB (Shares traded: 12.98 crore), BHEL (Shares traded: 11.26 crore), YES Bank (Shares traded: 10.21 crore), Bank of Baroda (Shares traded: 10.04 crore), Tata Motors (Shares traded: 8.67 crore), Tata Power (Shares traded: 7.50 crore), SBI (Shares traded: 7.22 crore), SAIL (Shares traded: 6.51 crore) and TV18 Broadcast (Shares traded: 6.02 crore) were among the most traded stocks in the session.
Stocks showing buying interest
FACT, Equitas Small Finance Bank, Adani Power, Indiabulls RE and Avenue Supermart witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Friday, signalling bullish sentiment.
Stocks seeing selling pressure
Best Agrolife, Bcl Industries, Patel Integrated – Rights and SMC Global Securities 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 99 stocks on the BSE 500 index settled the day in green, while 400 settled the day in red.
Podcast: What does rising oil price mean for equity investors >>>
Traders on Dalal Street are worried not just about rising US bond yields and inflation but also about rising crude oil prices. Brent crude oil prices shot up by 5.2 per cent last week and are now at their highest levels in more than a year. How can it impact the input costs and transportation cost for major Indian companies? Does it also throw up some opportunities for investors? Let’s find out in today’s special podcast with independent market expert Rajiv Nagpal.
