The NSE Nifty 50 added 1.48% to 25,790 and the S&P BSE Sensex gained 1.63% to 84,544, logging record closing highs.
The Sensex also rose above 84,000 for the first time on Friday. For the week, the Nifty and Sensex gained 1.7% and 2%, respectively, posting a fifth week of gains in six.
Here’s how analysts the market pulse:
“On the daily charts we can observe that the Nifty has been consolidating around the 24,200 – 24,150 range where the 40 day average is placed. The structure is still weak and with the momentum indicators also having a negative crossover is also supporting our bearish stance. Incase of a spike towards the key moving averages 24,250 – 24,300 then it should be used as a selling opportunity for targets of 23,890 – 23,600. On the upside, 24,300 is the immediate hurdle from a short term perspective,” said Jatin Gedia of Sharekhan.Tejas Shah of JM Financial & BlinkX, said, “The Nifty index also closed above the crucial resistance zone of 25,500-550 this week and we expect an upwards trending activity to continue and the Nifty should move towards the next psychological resistance of 26,000 either continuously from the current levels or may be after a minor dip. Support for Nifty is now seen at 25,700 and 25,500-550. On the higher side, the next psychological resistance is at 26,000 Mark. Overall, Overall, more follow-up strength can be expected in today’s trading session.”That said, here’s a look at what some key indicators are suggesting for Monday’s action:
US market:
U.S. stocks closed nearly unchanged on Friday, as investors paused buying after a strong rally in the prior session that was fueled by an upsized interest-rate cut by the Federal Reserve, while Nike’s gains helped nudge the Dow to a record.
After notching their biggest daily percentage gains since mid-August, major averages were subdued for most of the session, but managed to secure weekly gains of at least 1%.
Stocks briefly had pared losses after comments from Fed Governor Christopher Waller increased expectations the central bank will cut interest rates by 50 basis points at its November meeting, having just cut by 50 bps on Wednesday.
European shares:
European shares slipped on Friday after a rally in the previous session spurred by the U.S. Federal Reserve’s outsized interest rate cut, while drugmaker Novo Nordisk slid on disappointing obesity pill data.
The pan-European STOXX 600 index closed 1.4% lower, though it recorded a second straight week of gains.
All major European stock markets had steep losses, except Spain, which closed 0.2% lower.
Tech View: Long bull candle
The Nifty formed a long bull candle, which indicates a decisive upside breakout in the market of the last 4-5 sessions range movement. The Nifty has broken above the range as well as the trend line resistance around 25,500 levels.
A long bull candle was formed on the daily chart.The short term trend of Nifty is sharply positive. Having surged up in one session on Friday, there is a possibility of consolidation/breather pattern in the short term, before moving up further. Next upside targets as per Fibonacci extension to be watched around 26250. Immediate support is at 25650, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,800 and 26,000 strike prices, while on the put side, the highest OI was at 25,700 strike price followed by 25,600 and 25,800.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Cochin Shipyard, Mazagon Dock Shipbuilders, IRB Infra Developers, Phoenix Mills, Bajaj Holdings, and Sammaan Capital among others.
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 signaling weakness ahead:
The MACD showed bearish signs on the counters of Usha Martin, Anand Rathi Wealth, Paytm, YES Bank, FACT, and LTIMindtree among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms:
ICICI Bank (Rs 9,753 crore), HDFC Bank (Rs 5,257 crore), RIL (Rs 4,589 crore), Bharti Airtel (Rs 3,686 crore), M&M (Rs 3,655 crore), Kotak Mahindra Bank (Rs 3,582 crore), and Infosys (Rs 2,899 crore) among others were among the most active stocks on NSE 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: 152.8 crore), IRB Infra Developers (Shares traded: 13 crore), Zomato (Shares traded: 8.4 crore), GMR Infra (Shares traded: 8.2 crore), YES Bank (Shares traded: 7.8 crore), Suzlon Energy (Shares traded: 7.4 crore), and ICICI Bank (Shares traded: 7.3 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Concord Biotech, Asahi India Glass, Max Healthcare, BSE, Shyam Metalics, JSW Energy, and Inox Wind among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
Shares of Gujarat Ambuja Exports and Vodafone Idea hit their 52-week lows, signaling bearish sentiment on the counter.
Sentiment meter bulls:
Overall, market breadth favoured bulls as 2,383 stocks ended in the green, while 1,572 names settled in the red.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
