The Nifty 50 closed 0.13% lower at 25,356, while the Sensex fell 0.09% to 82,890. Both indices surged about 2% each for the week, marking their best gains since late June.
Here’s how analysts the market pulse:
“The index remained range-bound throughout the day, facing resistance at the rising trendline on the daily chart. On the lower time frames, the RSI has entered a bearish crossover, signaling a potential reversal in bearish momentum. In the near term, the trend may remain sideways. Support is observed at 25,150–25,200, while resistance is seen at 25,460,” said Rupak De of LKP Securities.
Jatin Gedia of Sharekhan by BNP Paribas said, “On the daily charts, we can observe that after the sharp upward move in the previous trading session, the Nifty has consolidated. The price action is in line with expectations and may continue over the next couple of trading sessions. The undertone remains bullish, and the index is likely to resume its upward movement once the consolidation phase is complete. The upside target is expected to be between 25,500 and 25,700. Support is placed in the 25,200–25,150 zone.”
That said, here’s a look at what some key indicators are suggesting for Monday’s action:
US market:
Wall Street stocks rose again Friday, adding to weekly gains following economic data that sets the stage for the Federal Reserve to cut interest rates.Analysts say fresh jobs and inflation data in recent days has corroborated the Fed’s confidence that inflation has significantly moderated.On Friday, futures markets lifted the odds the Fed will cut interest rates by a half percentage-point instead of a quarter point, after markets had favored the smaller cut earlier in the week.
The broad-based S&P 500 ended at 5,626.02, up 0.5 percent for the day and more than four percent for the week. The Dow Jones Industrial Average rose 0.7 percent to 41,393.78, while the tech-rich Nasdaq Composite Index gained 0.7 percent to 17,683.98.
European shares:
European stocks rounded off the week on a positive note, supported by technology, real estate and mining shares, while investors shifted their focus to the U.S. Federal Reserve ahead of a long-awaited monetary easing at its meeting next week.
The pan-European STOXX 600 index was up 0.7% at 515.75 points on the day, while notching up gains of more than 1% for the week.
German shares outperformed European peers with a nearly 1% jump, boosted by a rise in shares of Siemens Energy and SAP. France’s CAC 40 rose 0.4% after consumer prices in the region’s second-largest economy rose 2.2% year-on-year in August, in line with its preliminary reading.
Tech View:
The Nifty consolidated on Friday, closing the day lower by 32 points amidst choppy movement. A small negative candle with a minor lower shadow formed on the daily chart. Technically, such range-bound movements following sharp uptrends are considered breather patterns and are seen as continuation patterns of the uptrend, according to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
“Nifty on the weekly chart moved up and has engulfed the long bear candle of the previous week, hence the bearish engulfing pattern of last week has been nullified. This is positive action and normally such negations of bearish pattern results in more upsides,” Shetti said.
“The short-term trend of Nifty continues to be positive. A sustainable move above 25,400 levels could pull Nifty towards the next upside of around 25,800 in the near term. Immediate support is at 25,200 levels,” he added.
Stocks showing bullish bias:
The momentum indicator Moving Average Convergence Divergence (MACD) showed bullish signals for Nuvama Wealth Management, Gravita India, Info Edge, Kaynes Technology, Thangamayil Jewellery, Piramal Enterprises, Ceat, and 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 experience an upward movement. Conversely, when the MACD crosses below the signal line, it suggests a potential downward movement.
Stocks signaling weakness ahead:
The MACD showed bearish signs for Ajanta Pharma, Eris Lifesciences, Jubilant Industries, IIFL Securities, P&G Health, Concord Control Systems, TechNVision Ventures, and others. The bearish crossover on the MACD for these stocks suggests they may have just begun their downward journey.
Most active stocks in value terms:
Patanjali Foods (Rs 2,618 crore), Kalyan Jewellers (Rs 2,336 crore), Zomato (Rs 2,280 crore), HDFC Bank (Rs 1,984 crore), Bajaj Finance (Rs 1,668 crore), Granules India (Rs 1,439 crore), and Tata Motors (Rs 1,313 crore), among others, were among the most active stocks on the NSE in value terms. Higher activity in value terms can help identify the stocks with the highest trading turnovers for the day.
Most active stocks in volume terms:
Vodafone Idea (19.8 crore shares traded), YES Bank (10.5 crore shares traded), Suzlon Energy (8.2 crore shares traded), Zomato (8.2 crore shares traded), IDBI Bank (7.7 crore shares traded), Tata Steel (5.4 crore shares traded), and Samvardhana Motherson International (3.3 crore shares traded), among others, were among the most traded stocks in the session on the NSE.
Stocks showing buying interest:
Shares of Jubilant Pharmova, Godfrey Phillips, Home First Finance, OFSS, Piramal Enterprises, Century Textiles, and Blue Star, among others, witnessed strong buying interest from market participants as they reached new 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure
No major shares hit their 52-week low on Friday.
Sentiment meter bulls
Overall, market breadth favored the bulls, with 2,454 stocks ending in the green and 1,517 stocks settling 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)
