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

New Delhi: Signs of a short pause from the record rally, Nifty50 We formed an inside bar pattern on the daily chart on Friday. Analysts said short-term weaknesses in future sessions could not be ruled out.

Here’s how analysts can read market trends:

Sharekhan’s Gaurav Ratnaparkhi said the pause in market rebound is a good sign as the overbought hourly momentum chills and prepares for the next cycle. “Structurally, a minor integration is expected to be followed by the next leg-up, going from Nifty 50 to 16,400 levels in the short term,” he said.

Chartviewindia.in Chief Strategist – Technical Research & Trading Advisory Mazar Mohammad said the Nifty50 could be traded sideways or bearish next week. “Selling pressure can increase below the 16,140 level. If the Nifty50 can defend the 16,210 level, the Bulls may try to bounce towards the 16,350 level,” he said.

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

U.S. stocks close record high

The Dow and S & P 500 indexes closed at record highs on Friday following stronger than expected employment reports, but investors fought off concerns about Delta variants affecting the initial economic recovery. .. The Dow Jones Industrial Average rose 144.26 points (0.41%) to 35,208.51 on Friday, the S & P 500 rose 7.42 points (0.17%) to 4,436.52, and the Nasdaq Composite fell 59.36 points (0.4%). It became 14,835.76.

European stocks post the best week in almost 5 months

European stocks approached record closing prices on Friday, marking the highest week since mid-March. The pan-regional STOXX 600 index reached a record high for the fifth consecutive year, rising 1.8% in a week and ending at 469.97 points.

Technical View: Analysts have seen some weaknesses first

Friday’s Nifty 50 faced severe resistance at the 16,300 level. This is the third time in a few days and suggests that the Bulls are tired after pushing the NSE benchmark out of the 15,500-15,900 integration range at the beginning of the week. Analysts who advised investors to buy in dips said short-term weaknesses in future sessions could not be ruled out. On Friday, the index formed an inside bar pattern on the daily chart.

F & O: VIX mitigation shows that the Bulls own the market

India VIX fell 2.04% from 12.87 to the 12.60 level. Volatility stability shows that the Bulls are holding the market to support fresh momentum. Option data suggested a wider trading range between the 16,000 and 16,500 levels.

Stocks showing bullish bias

Momentum Index Moving Average Convergence Divergence (MACD) is a bullish trade at Tata Chemicals, Aditya Birla Capital, IndusInd Bank, Laurus Labs, Jain Irrigation, Narayana Hrudayalaya, Dhani Services, Tata Investment, NDTV, Mold-Tek Packaging and Sirca counters Indus, Amru Tatajan Healthcare, 21st Century Management Services Painted Settings Shown.

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.

Stocks showing weakness in the future

MACD includes Ambuja Cements, Metropolis Healthcare, L & T, Sterling and Wilson, Mirza International, ICICI Pru Life, Bajaj Finance, Trent, Spencer’s Retail, Schneider Electric,

, Brigade Enterprises ,, Aptech, Bharat Dynamics, Inox Leisure, Everest Industries, Prime Securities, Rane Holdings, Umang Dairies, Jocil, Pfizer, Abbott India ,, Wheels India, KPR Mill, Arman Financial Services, The United Nilgiri, Agro Tech Foods , Cambridge Technology and GKW. A bearish crossover at MACD on these counters showed that they were just beginning their downward journey.

The most active stock in terms of value

(Rs 2,157.85 Chlore), Tata Chemicals (Rs 1,968.80 Chlore), Bharti Airtel (Rs 1,733.14 Chlore), SBI (Rs 1,679.10 Chlore), RIL (Rs 1,611.64 Chlore), Glenmark Life Sciences (Rs 1,545.43 Chlore), Tata Steel (Rs 1,392.80) ), Adani Ports SEZ (Rs 1,244.29 Chlore), HCL Tech (Rs 1,222.58 Chlore) and ICICI Bank (Rs 1,027.28 Chlore) were one of the most active stocks on Daral Street in terms of value. Higher activity at the counter in terms of value helps identify the counter with the highest turnover for the day.

The most active stock in terms of volume

Vodafone Idea (traded stock: 126.02 chlore), YES Bank (traded stock: 6.44 chlore), GAIL (traded stock: 6.35 chlore), GTL Infra (traded stock: 6.30 chlore), PNB (traded) Traded shares: 6.26 chlores), IDFC First Bank (traded shares: 4.99 chlores), NALCO (traded shares: 4.92 chlores), Bank of Baroda (traded shares: 4.83 chlores), Tata Power (traded shares: 4.93 chlores) Stocks: 4.77 Chlore), SAIL (Traded Stocks: 4.70 Chlore) are the most traded stocks in the session.

Stocks showing willingness to buy

BASF India, Easy Trip Planners, Havells India, Tata Investment, Tata Chemicals, IIFL Wealth Management, Sanofi India and Adani Power hit 52-week highs, show bullish sentiment and motivate market participants to buy Shown.

Stocks watching sales pressure

Aarey Drugs & Pharmaceuticals, Akg Exim, Suryoday Small Finance Bank and Tatva Chintan Pharma Chem 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. 243 stocks in the BSE500 index settled the day in green and 253 stocks settled the day in red.

Podcasts: Are IPOs Depleting Small Caps Investment?
in the meantime Nifty Over five days, it rose by more than 3%, the midcap index rose by less than 1%, and the smallcap index fell by 0.55%. This all happened when investors pushed up Rs 1.7 in four IPOs. Is there a link between the poor performance of small caps, which are of great interest to individual investors, and the surge in IPOs?