The NSE Nifty 50 index closed 0.42% lower at 19,542, while the S&P BSE Sensex fell 0.35% to 65,397. Both the benchmarks lost over 1% for the week.
Here’s how analysts read the market pulse:
“On the daily charts we can observe that Nifty is trading at the crucial support zone of 19530 – 19500 where 61.82% Fibonacci retracement level of rise from 19333 – 19850 is placed. Considering prices are trading at crucial support levels only a breach below 19500 – 19450 zone shall lead to a sharp decline. In terms of levels, 19550 – 19500 is the crucial support zone while 19640 – 19660 shall act as an immediate hurdle zone,” said Jatin Gedia, Sharekhan by BNP Paribas.
Rupak De, Senior Technical analyst at LKP Securities, said, “The current trend appears to be negative, with immediate support situated at 19,500. A further decline below this level could potentially lead the index towards the range of 19,150 to 19,000. On the upside, the zone between 19,600 and 19,650 is expected to act as a strong resistance. A move above 19,650 could trigger short covering in the market.”
That said, here’s a look at what some key indicators are suggesting for Monday’s action:
US market:
Wall Street stocks declined Friday, as investors looked to lower their risk going into the weekend amid surging bond yields and conflict between Israel and Hamas militants in Gaza.
The Dow Jones Industrial Average lost 0.9%. The S&P 500 Index slipped 1.3%, while the tech-heavy Nasdaq Composite Index declined 1.5%.
European shares:
European shares fell on Friday and posted their biggest weekly loss in seven months as concerns about a wider Middle East conflict, rising government bond yields and disappointing earnings reports kept higher-risk equities under pressure. The pan-European STOXX 600 hit its lowest level in seven months, down 1.4%.
Tech View: Long bear candle
Nifty on Friday ended 82 points lower to form a Doji candle on the daily chart and a long bear candle with an upper shadow on the weekly timeframe.
The short term trend of Nifty remains negative. A slide below the immediate support of 19480 could drag Nifty towards another important support of 19350 levels in the near term. Immediate resistance is placed around 19650 levels, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Bombay Burmah, MTAR Technologies, Amber Enterprises, United Breweries, Tube Investments, and Delta Corp 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 Astral Poly Tech, ICICI Bank, Route Mobile, Sunteck Realty, HCL Tech, and Shree Cements among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
HDFC Bank (Rs 1,602 crore), RIL (Rs 1,026 crore), HUL, (Rs 901 crore), Tata Motors (Rs 787 crore), IndusInd Bank (Rs 751 crore), Kotak Bank (Rs 716 crore), and SBI (Rs 628 crore) among others 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 highest trading turnovers in the day.
Most active stocks in volume terms
Tata Steel (Shares traded: 3.1 crore), Power Grid (Shares traded: 2.2 crore), ITC (Shares traded: 1.3 crore), Tata Motors (Shares traded: 1.2 crore), SBI (Shares traded: 1.1 crore), HDFC Bank (Shares traded: 1 crore), and NTPC (Shares traded: 90 lakh) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of Bombay Burmah, Angel One, MCX India, ICICI Securities, The New India Assurance Company, BSE, and Suzlon Energy 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 Rajesh Exports, V Mart Retail, Navin Fluorine and Gujarat Gas hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bears
Overall, market breadth favoured bears as 2,402 stocks ended in the red, while 1,312 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)