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

New Delhi: Market consolidation could continue to move forward and volatility could be highest on Monday as well. The market will first respond to the tightening of regulations in some states and the more liberal immunization rules proposed by India.

Here’s how analysts can read market trends: ――――

According to Motlial Oswal’s Chandan Taparia, the shadow of weekly bullish candles is long and low, indicating that buying has been seen to decline, but the hurdles have not been compromised at high levels. For him, over 17,000 Nifty50 holds are a must-have for the rise to 17,200 and 17,350. Taparia sees support at 16,900.

Gaurav Ratnaparkhi, Head of Technology Research at Sharekhan, said the hourly top Bollinger Bands and 20-DMA tests attracted new sales. According to him, the index formed a bearish outside bar and entangled bear candles on Friday’s daily chart. He felt that Friday’s high of 17,155 was a decisive resistance.

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


S & P500 records record closing price
Wall Street’s major index recorded a solid rise three times in a row on Thursday, with the S & P 500 hitting a record high. This is because encouraging developments have made it easier for investors to understand the economic impact of the Omicron coronavirus variant.

European stocks fall
European stocks fell in a light holiday deal on Friday following a recent rise in global stocks on signs that variants of the Omicron coronavirus may not undermine the recovery of the global economy. The Pan-Europe STOXX600 index fell 0.1% to 483.01 in a shortened trading session before Christmas. Benchmarks were added 1.9% this week.

Tech View: Another thing on the chart
Friday’s Nifty 50 formed a bearish candle on the daily chart the day after forming the indecisive doji, suggesting a negative bias in the market. On the weekly chart, the index formed a bullish candle. Analysts believe that the index may continue to be in the integration phase.

F & O: No clear winner
In the derivatives segment, 17,200 calls have been accumulated. This means that traders see this as the greatest resistance and the first hurdle when the market needs to rise further. In the case of bears, 16,500 puts have been accumulated. This means that support is available at this price.

Stocks showing bullish bias
Momentum Index Moving Average Convergence Divergence (MACD) showed bullish trading settings at the counters of Torrent Pharma, Mindteck, Capacit’e Infraprojects, APL Apollo Tubes and La Opala.

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 showed signs of bearishness at counters at Torrent Pharma, India Cements, DB Realty, Reliance Industries, Exide Industries, Allcargo Logistics and Manappuram Finance. 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
HCL Tech (Rs 2,022 chlores), Reliance Industries (Rs 859 chlores), TCS (Rs 812 chlores), Tata Motors (Rs 721 chlores), Infosys (Rs 705 chlores), ICICI Bank (Rs 639 chlores) were the most active. .. Daral Street stock 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 shares: 25 chlores), YES Bank (traded shares: 8 chlores), Suzlon Energy (traded shares: 8 chlores), PNB (traded shares: 6 chlores), Vakrangee (traded) The shares traded (4 chlores) and L & T Finance Holdings (traded shares: 3 chlores) were one of the most traded shares in the session.

Stocks showing willingness to buy
KPIT Tech, Tech Mahindra, Anupam Rasayan, JSW Energy, Radico Khaitan and Max Healthcare have shown strong buying motivation from market participants as they hit 52-week highs and show bullish sentiment.

Stocks watching sales pressure
Indigo Paint witnessed strong selling pressure, hitting a 52-week low and showing bearish sentiment at the counter.

Sentiment meter supports bulls
Overall, the breadth of the market favored the losers as 1,573 shares closed green and 1,751 shares fell.

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Already under pressure from the sale of FII, the rapid spread of the Omicron variant of Covid-19 is now casting a shadow of uncertainty. NiftyForecast for the next few months. Understand the threats and opportunities in today’s special podcast by independent market expert Rajiv Nagpal.