Ahead of the market: 12 things that determine stock behavior on Monday

By Sabari Saran

New Delhi: Friday’s domestic index tried to get out of the rut that had been stuck for some time, but sales appeared with every rise, suggesting indecision between investors and traders. The index formed higher highs and lows in the third session, which remained hopeful.Inflation in India settled to its lowest level in three months in April, but it wasn’t enough to raise sentiment on Daral Street due to the risk of increased price pressure due to the blockade. Nifty During the session, it shook between red and green.

Inflation in India is not a concern for the market. Inflation in the United States is.

Nifty carried over the losing streak on the third day, trading in a narrow range and ending the unstable session in the red. The index formed a hammer-like candle on the daily chart. Analysts said the index would need to exceed the 14,850 level to see a rise of more than 15,000 to 15,050.

Independent analyst Manish Shah said, “If the range of the breakout is revealed, the Nifty50 should rise towards 15,450-15,500. If it falls towards 14,450-14,500, it will stop below 14,200. Must be used to buy into the market at. ”

Nirari Shah, head of equity research at SAMCO Securities, said the benchmark index has not moved in any direction after a long-term rise and is now in the 14,400 to 15,000 integration range. “The Nifty 50 has failed to retest the 15,000 immediate resistance level because it faces supply pressure at a higher level. It maintains Nifty’s bearish short-term outlook until the 15,000 immediate resistance level is breached. “She said.

That said, let’s take a look at some of the key indicators of Monday’s behavior.

U.S. stocks end volatile week with a significant rise
Wall Street closed at high prices in a wide range of rallies, with signs of economic recovery confronting rising inflation jitter, making a bright conclusion for buying and selling Whipso Week. All three major US indices expanded Thursday’s rise, with the S & P 500 recording the largest daily percentage rise in more than a month. The Dow Jones Industrial Average rose 360.68 points (1.06%) to 34,382.13, the S & P 500 rose 61.35 points (1.49%) to 4,173.85, and the Nasdaq Composite Index rose 304.99 points (2.32%) to 13,429.98. became.

European stocks fall this week
European equities surged on Friday, driven by rising energy and retail sectors, pushing the STOXX 600 index into the negative territory this week after the Federal Reserve Board said there was no imminent move to tighten monetary policy. Alleviated concerns about rising inflation. The Pan-Europe STOXX 600 index rose 1.1%, driven by oil and gas and retail equities. Benchmarks fell 0.5% this week as rising commodity prices and signs of accelerating US inflation raised concerns about a faster-than-expected rate hike by the Federal Reserve Board.

Tech View: Nifty50 is expected to buy near 100-SMA
Friday’s Nifty 50 formed a hammer-like candle on the daily chart and a small bearish candle on the weekly chart. During the session, the NSE barometer saw selling pressure near the 14,750 level. It fell below the 20-day exponential moving average (EMA) and then approached the 100-day simple moving average (SMA), reaching a level of 14,576. Mazhar Mohammad of Chartviewindia.in said the index recovered during the day after going back 62% of the last leg of the rally from a low of 14,416-14,966.

Please check Candlestick formation In the latest trading session


F & O: VIX must stay below 20 to attract bulls
India VIX rose 0.93% from 20.08 to the 20.26 level. India VIX needs to be below 20 levels to attract a bullish stance again in the market. In terms of options, the maximum put open position was 14,000 levels, followed by 13,500, and the maximum call OI was 15,000 levels, followed by 14,800. There was call writing at exercise prices 15,100 and 15,300, but put writing was seen at the 14,650 and 14,500 levels. Option data suggested a wider trading range between the 14,400 and 15,000 levels.

Stocks showing bullish bias
Friday Momentum Index Moving Average Convergent Divergence (MACD) is bullish at Tata Motors, Arroque Industries, Asian Paint, M & M Financial Services, Biocon, KPIT Technologies, HDFC Life Insurance, Delta Corporation, Hester Biosciences, Cabra Extrusion counters Shown the transaction settings of. Aavas Financiers, Bhagyanagar Properties, Arihant Superstructure.

MACD is known for notifying the trend reversal of traded securities or indexes. When the MACD crosses over the signal line, it signals a bullish signal, indicating that the price of the security may rise or vice versa.

Read more about stock screener.

Stocks showing weakness in the future
MACD includes Adani Power, Granules India, Adani Enterprises, Indian Energy Exchange, Dr Reddy’s Labs, City Union Bank, Bodal Chemicals, Time Technologyplast, ACC, MindTree, Vardhman Special Steels, Divi’s Lab, Tata Metaliks, Max Financial Services, KEI Industries , JB Chemicals & Pharma, Sarda Energy & Miner, Gujarat Fluorochem, GSS Infotech, Steel Exchange India, Intense Technologies, Srikalahasthi Pipes, Banco Products, Apar Industries, Blue Dart Express, Jubilant Industries, Mold-Tek Technologies, Mindteck (India), Sasken Technologies, Savita Oil Tech, WABCO India. A bearish crossover at MACD on these counters showed that they were just beginning their downward journey.

The value of the most active stocks on Friday
Tata Steel (Rs 4,304.07 Chlore), UPL (Rs 4,248.06 Chlore), Asian Paints (Rs 2,917.88 Chlore), Tata Motors (Rs 2,586.97 Chlore), JSPL (Rs 2,244.77 Chlore), SAIL (Rs 1,896.70 Chlore), SBI (Rs 1,890.91 Chlore) )), JSW Steel (Rs 1,850.85 Chlore), Hindalco (Rs 1,580.33 Chlore) and Dr Reddy’s (Rs 1,572.70 Chlore) were one of the most active stocks on Dalal Street on Friday. Higher activity at the counter in terms of value helps identify the counter with the highest turnover rate for the day.

Friday’s volume-based most active stock
PNB (Traded Stocks: 18.56 Chlore), Vodafone Idea (Traded Stocks: 17.15 Chlore), BHEL (Traded Stocks: 16.26 Chlore), SAIL (Traded Stocks: 14.76 Chlore), JP Power (Traded Stocks: 14.21 Chlore), Reliance Power (Traded Stocks: 10.80 Chlore), NALCO (Traded Stocks: 8.81 Chlore), Baroda Bank (Traded Stocks: 8.69 Chlore), YES Bank (Traded Stocks: 8.57 Chlore) and the South Indian Bank (traded stocks: 8.45 Chlore) are the most traded stocks in the session.

Stocks showing willingness to buy
Welspun India, Prince Pipes, UPL, KPIT Tech and Chambal Fertilizers hit 52-week highs and showed bullish sentiment, showing strong buying motivation from market participants.

Stocks watching sales pressure
DSJ Communications, Globe Textiles, Isgec Heavy Engineering, Jump Networks, LCC Infotech and Suvidhaa Infoserve witnessed strong selling pressure, hit 52-week lows and showed bearish sentiment at these counters.

Sentiment meter supports bears
Overall, the breadth of the market remained favorable to bears. 137 stocks in the BSE500 index settled the day in green and 361 shares settled in red on the day.

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Ahead of the market: 12 things that determine stock behavior on Monday

https://economictimes.indiatimes.com/markets/stocks/news/ahead-of-market-12-things-that-will-decide-stock-action-on-monday/articleshow/82679553.cms Ahead of the market: 12 things that determine stock behavior on Monday

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