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

New Delhi: Friday’s domestic stock index fell, but wiped out all losses and ended in green.The· market Recorded four days in a row, thanks to growing interest in finance, pharmaceuticals and real estate stock..

Nifty I managed to finish over the 15,700 mark and formed a trend-reversing “hammer” candle on the daily chart. Analysts said the index could recover next week.

Here’s how analysts can read market trends: —

The Sumeet Bagadia of Choice Broking said the index favored the formation of Bollinger Bands, indicating a positive bias in the Stochastic Oscillator. “Short-term Nifty 50 resistance will be at the 15,915 level and immediate support will be 15,600,” said Bagadia.

According to Chandan Tapria of Motilal Oswal Securities, the bullish hammer candles on the daily chart show that the decline is acceptable. “The Nifty 50 needs to be held above the 15,700 level to witness a bounce back to the 15,850 and 15,900 levels. On the downside, support is seen at the 15,600 and 15,500 levels,” he said.

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

U.S. stocks hit record highs
S & P closed for the seventh straight day after Wall Street hit a new high on Friday and June employment data showed strong employment, but the labor market remains weak. Federal Reserve From raising interest rates soon. The Dow Jones Industrial Average rose 152.82 points (0.44%) to 34,786.35, the S & P 500 rose 32.4 points (0.75%) to 4,352.34, and the Nasdaq Composite Index rose 116.95 points (0.81%) to 14,639.33. became.

Chip maker raises European stocks
European equities rose slightly on Friday due to a boost from chip makers, but were curbed by weaker bank stocks and growing concerns about delta mutations in the coronavirus. The Pan-Europe STOXX 600 index rose 0.3% to close at 456.81 points and tech stocks rose 1.1%.

Tech View: Nifty forms a hammer on a daily scale
The Nifty50 snapped a four-day losing streak on Friday, forming a trend-reversing “hammer” candle on the daily chart. Sales were seen with a support range ranging from 15,650 to 15,600. On a weekly basis, the index formed bearish candles, forming higher highs-lows. Analysts are looking at a future recovery. Sharekhan’s Gaurav Ratnaparkhi has multiple support parameters around 15,650-15,630, including a 61.8% retracement of the previous rise from 15,450 to 15,915 levels, a daily Bollinger band lower limit, and a lower channel lower limit for hourly and daily charts. Said it exists in. Zone, it guided the bull to action.

F & O: The lower the VIX, the more range bound the movement.
India VIX fell 5.84% from 12.84 to the 12.09 level. The fear gauge gradually drifted low, hovering near the lowest levels in the last 17 months. Low volatility indicates a rangebound move, but at the same time a decline may be acceptable. In terms of options, the largest put open position was seen at the 15,500 level, followed by the 15,000 level, the largest call OI was seen at the 16,000 level, followed by the 16,500 level. Call writing was seen at 16,100 levels, then 16,200 levels, while put writing was seen at 15,000 levels, then 15,500 levels. Option data suggests an immediate trading range between the 15,600 and 15,900 levels.

Stocks showing bullish bias

Momentum Index Moving Average Convergence Divergence (MACD) is available from Jain Irrigation, NCC, Tata Chemicals, Greaves Cotton, NIIT, Jyothy Labs, Vedanta, Max Healthcare, ICICI Securities, CCL Products India, Mangaram Cement, Biocon, Aarti Drugs, KEI Industries, Kaveri Seed Company, Hindustan Aeronautic, Strides Pharma, PI Industries, Allied Digital Services, Nippon Life AMC, Borosil, Vinyl Chemicals, Consolidated Finvest, Cyient, Satin Creditcare, Excel Industries, Oriental Aromatics, Apar Industries, Fine Organic Indus, Atul, Future Enterprises, Cambridge Technology.

Stocks showing weakness in the future

MACD shows bearish signs on Tata Steel, Rail Vikas Nigam, Marico, Tata Consultancy, EPL, Alankit, Max Financial Services, MindTree, Gravita India, United Breweries, Orient Abrasives, PTL Enterprises, Shree Rama Newsprint, BLB, L & T counters Was shown. Technology Services, Savita Oil Tech, South West Pinnacle, Honda India Power, Kennametal India, Ebix CashWorld Money.

The most active stock in terms of value

Happiest Minds (Rs 3,324.71 Chlore), Route Mobile (Rs 1,870.16 Chlore), RIL (Rs 1,376.27 Chlore), Adani Ports SEZ (Rs 1,263.02 Chlore), HDFC Bank (Rs 1,099.16 Chlore), Tata Chemicals (Rs 1,007.34 Chlore) (Rs 968.87 Chlore), Tata Steel (Rs 866.66 Chlore), Infosys (Rs 802.98 Chlore) and Aurobindo Pharma (Rs 745.84 Chlore) were one of the most active strains on Daral Street in terms of value.

The most active stock in terms of volume

Reliance Comm (traded shares: 33.13 chlores), Vodafone Idea (traded shares: 32.44 chlores), JP Power (traded shares: 8.37 chlores), PNB (traded shares: 8.23 ​​chlores), HFCL (traded) Traded shares: 6.24 chlores), Reliance Power (traded shares: 6.05 chlores), YES Bank (traded shares: 5.49 chlores), BHEL (traded shares: 5.25 chlores), GMR Infra (traded) The number of shares traded (4.55 chlores) and Reliance Capital (number of shares traded: 3.93 chlores) were the highest. Stocks traded in the session.

Stocks showing willingness to buy

Root Mobile, JB Chemicals, HFCL, Vinati Organics and Fairchem Specialty have shown strong buying motivation from market participants as they hit 52-week highs and showed bullish sentiment.

Stocks watching sales pressure

Shivalik Bimetal Controls and Uttam Galva Steels witnessed strong selling pressure, hitting a 52-week low and showing bearish sentiment at these counters.

Sentiment meter

Overall, the breadth of the market remained favorable to the Bulls. 279 shares of the BSE500 index settled the day in green and 213 shares settled the day in red.

Podcasts: Is it easy to make money with small cap stocks?>>>

While many money managers are advocating shifts in favor of mid-caps, small caps are also receiving a lot of attention. The Nifty50 has risen 1% and the Nifty Midcap index has risen 3.5%, while the Nifty Smallcap index has risen more than 6% in the past month. Today’s special podcast with independent market expert Rajiv Nagpal tries to understand what you should and shouldn’t invest in small caps. please listen.