The NSE Nifty 50 fell 0.21% to 24,148, while the BSE Sensex shed 0.07% to 79,486. They have dropped 0.64% and 0.3%, respectively, this week, posting their fifth weekly losses in six.
Here’s how analysts the market pulse:
“The 24,000 level is expected to serve as strong support for the index. If it holds above this level, Nifty bulls may still have an opportunity to regain momentum. However, a break below 24,000 could further weaken the market. The RSI indicator remains in a positive crossover, indicating that short-term momentum is likely to stay strong. In the near term, the index may recover toward 24,500, but a dip below 24,000 could lead to a market correction,” said Rupak De of LKP Securities.
Jatin Gedia of Sharekhan, said, “On the daily charts we can observe that the Nifty is in the process of retracing the rise it witnessed from 23800 to 24500. Currently it is trading around the 61.82% Fibonacci retracement level (24090) which is likely to provide support and holding which can lead to resumption of up move. A break below 23970 is likely to weaken the structure.”
That said, here’s a look at what some key indicators are suggesting for Monday’s action:
US market:
The S&P 500 briefly surpassed the 6,000 mark and closed with its biggest weekly percentage gain in a year, as Donald Trump’s election victory and a possible Republican Party sweep in Congress fueled expectations for favorable business policies.
Also supporting stocks this week was a widely expected interest rate cut of 25 basis points by the Federal Reserve on Thursday.
The S&P 500 and the Dow Industrials registered their best weekly percentage jump since early November 2023, while the Nasdaq notched its best week in two months and second-best week of 2024.
European shares:
Europe’s benchmark STOXX 600 logged its third consecutive week of declines on Friday, hurt by underwhelming stimulus measures from China as well as concerns about tariffs under a Trump presidency hurting economic growth.
The pan-European STOXX 600 closed down 0.6%, with China-exposed sectors such as miners and luxury losing more than 3% each. Most major sub sectors were in the red barring defensive sectors such as real estate and healthcare.
Tech View: Small negative candle
A small negative candle was formed on the daily chart of Nifty with a minor lower shadow. Technically, this market action indicates a choppy movement in the market. Having declined sharply from near the hurdle of 24,500 levels, one may expect further consolidation movement in the short term.
The short-term trend of Nifty continues to be choppy and this consolidation is likely to continue for the coming session. The next lower supports to be watched are around 23,800 levels. Immediate resistance is placed at 24,250 levels, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 24,200 and 24,300 strike prices, while on the put side, the highest OI was at 24,000 strike price followed by 24,100.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Indian Hotels, Motisons Jewellers, Bharat Global Developers, and Vardhman Holdings 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 Radico Khaitan, Suven Pharma, Abbott India, ICICI Bank, and Vishnu Prakash R Punglia 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:
ITI (Rs 2,684 crore), RIL (Rs 2,544 crore), SBI (Rs 2,216 crore), Indian hotels (Rs 1,906 crore), Paytm (Rs 1,853 crore), HDFC Bank (Rs 1,746 crore), and Trent (Rs 1,602 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: 31.1 crore), ITI (Shares traded: 9 crore), Suzlon Energy (Shares traded: 8.6 crore), Tata Steel (Shares traded: 6.1 crore), YES Bank (Shares traded: 5 crore), Zomato (Shares traded: 4.8 crore), and SAIL (Shares traded: 4.7 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Vijaya Diagnostic, Indian Hotels, Page Industries, Coforge, Federal Bank, Netweb Technologies, and Nalco 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 Aarti Industries, and Delhivery hit their 52-week lows, signaling bearish sentiment on the counter.
Sentiment meter bears:
Overall, market breadth favoured bears as 2,635 stocks ended in the red, while 1,346 names settled in the green.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
