Ahead of Market: 10 things that will decide stock action on Monday - Economic Times

Indian equities on Friday ended on a strong note led by improved risk-on sentiment. Nifty after hitting an intraday fresh record high of 19,202, ended with 1% gains at 19,189. Sectorally, IT, auto, and PSU Banks led the gains, with gains of over 2% each.

Here's how analysts read the market pulse:
“The market's upward momentum was further supported by strong inflows from FIIs, the merger update of HDFC, and a narrowing current account deficit. Globally, investor confidence was uplifted by favourable revisions in US Q1 GDP, a decline in jobless claims, and positive outcomes from the US bank stress test conducted by the Fed,” Vinod Nair, Head of Research at Geojit Financial Services, said.

“For bulls, 19050 and 19000 would act as key support zones while 19300-19400 would be crucial resistance areas. However, below 19000, traders may prefer to exit from the long positions. For Bank Nifty, as long as it is trading above 44300 the breakout texture is likely to continue and could move up till 45000-45300,” Amol Athawale, Kotak Securities, said.

That said, here’s a look at what some key indicators are suggesting for Monday’s action:
US stocks rally
Wall Street stocks concluded a winning quarter with a flourish on Friday, cheering better inflation data as Apple surged to a valuation of over $3 trillion.

All three indices spent the entire session in positive territory after the personal consumption expenditures index measure of inflation eased to 3.8 percent year-on-year in May, a significant drop from 4.3 percent a month earlier.

European shares climb
European shares rose on Friday as lackluster data on China's factory activity spurred hopes of more policy stimulus, while investors awaited key inflation readings for more clues on the direction of global interest rates.
The pan-European STOXX 600 index was up 0.7% by 0825 GMT.
Tech View: Long bull candle
A long bull candle was formed on the daily chart with a gap-up opening, which is for the third consecutive session. The opening upside gaps of the last two sessions are unfilled. As per the gap theory, this pattern could be considered a runaway gap, which reflects an uptrend continuation pattern in the underlying.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Bank of Maharashtra, Biocon, Federal Bank, Jammu and Kashmir Bank, and UCO Bank 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 Credit AccessGrameen Bank, MCX, HBL Power Systems and Time Technoplast among others.

A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms
Adani Transmission (Rs 3623 crore), HDFC Bank (Rs 3457 crore), HDFC (Rs 1964 crore), and Infosys (Rs 1700 crore) 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 the highest trading turnovers in the day.

Most active stocks in volume terms
Easy Trip Planners(Shares traded: 28.63 crores), Suzlon Energy (Shares traded: 26.07 crores), Vodafone Idea (Shares traded: 6.77 crores), and YES Bank (Shares traded: 6.91 crores) among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of JK Tyre, HDFC AMC, Karnataka Bank, JBM Auto, and KFin Technologies 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 Penta Gold, Power and Instrument, Bombay Metrics, and Cell Point (India) among others stocks hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favors bulls
Overall, market breadth favoured bulls as 1,627 stocks ended in the red, while 1,890 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 Economic Times)

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Ahead of Market: 10 things that will decide stock action on Monday - Economic Times
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