NEW DELHI: As Nifty ended higher for the fifth straight session on Friday, it formed a bullish candle on the daily chart.

Nagaraj Shetti of HDFC Securities said the short-term trend of Nifty continues to be positive, and may form a new all-time high soon. “One may expect the formation of a new all-time high soon in the market (above 12,430). A sustainable move above this hurdle could pull Nifty towards 12,600-12,700 levels in the next few weeks. Intra-week dips could be a buying opportunity for the near term. Immediate support is placed at 12,150,” he said.

Vinod Nair of Geojit Financial Services said this momentum may sustain aided by positive Q2 results, favorable economic data, strong FII buying and expectations of an additional stimulus package.

Joseph Thomas of Emkay Wealth Management said Biden’s victory, the state of the pandemic, and the future course of the Indo-China border conflict are factors which will be relevant to the trade trajectory of the markets in the coming weeks.

That said, here’s a look at what some of the key indicators are suggesting for Monday’s action:

US stocks ends little changed
US stocks held near the unchanged mark on Friday to close out a strong week. The three major indexes notched their biggest weekly percentage gains since April as the prospect of policy gridlock in Washington eased worries a Biden administration might tighten regulations on U.S. companies. The Dow Jones Industrial Average fell 0.24%, the S&P 500 lost 0.03% and the Nasdaq Composite added 0.04%.

European stocks end strong week with mild losses
European stocks closed slightly lower on Friday, taking the shine off a 7% rally this week as investors focused on soaring coronavirus cases on the continent and the US presidential election. The pan-European STOXX 600 slipped 0.2% after a five-day winning streak that marked the index’s best week since early June.

Tech View: Nifty50 may hit record high this week
The bulls continued their march on Dalal Street and helped benchmark Nifty50 register positive close for the fifth session in a row on Friday. In the process, the index ended up forming a strong bullish candle with an intra-week range of over 700 points. Analysts said the index can now hit a new lifetime high over the next few sessions.

F&O: VIX declines 2.21%
India VIX fell 2.21 per cent from 20.96 to 20.49 levels. Volatility has cooled down significantly and that is providing stability to the bulls in the market to ride the move towards the all-time high territory. On the options front, maximum Put open interest stood at 11,000 level followed by 11,500, while maximum Call OI was at 12,000 followed by 12,500 levels.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Friday showed bullish trade setup on the counters of IDFC First Bank, DLF, Spicejet, M&M, GMR Infrastructure, Dabur India, Bombay Dyeing, Muthoot Finance, ITI, Aurobindo Pharma, Jindal Stainless, EIH, Sunflag Iron, Indian Hotels, Raymond, Cummins India, Jai Corp, Century Textiles, Jubilant Foodworks, Balaji Amines, Linde India, Britannia Industries, KRBL, Camlin Fine Sciences, JK Paper, eClerx Services, HDFC AMC, ABB India, Anik Industries, Shiva Mills, The United Nilgiri, MMP Industries, Indo Tech Transformers, Inspirisys Solutions and Revathi Equipment, among others.

Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of ACC, Jain Irrigation, Capri Global Capital, Dr. Lal Pathlabs, Ashiana Housing, Sakar Healthcare, Visaka Industries, Greenlam Industries, Oriental Aromatics, LG Balakrishnan, Gillanders and Gujarat Leasing Finance, among others.

Friday’s most active stocks
RIL (Rs 6,201.57 crore), HDFC Bank (Rs 2,311.10 crore), IndusInd Bank (Rs 2,175.44 crore), Bajaj Finance (Rs 2,163.41 crore), SBI (Rs 1,602.55 crore), ICICI Bank (Rs 1,227.60 crore), Axis Bank (Rs 1,200.38 crore), TCS (Rs 1,048.32 crore), Kotak Bank (Rs 1,007.12 crore) and HDFC (Rs 979.92 crore) were among the most active stocks on Dalal Street on Friday in value terms.

Friday’s most active stocks in volume terms
Vodafone Idea (shares traded: 15.83 crore), SITI Networks (shares traded: 12.65 crore), YES Bank (shares traded: 8.34 crore), SBI (shares traded: 7.31 crore), Tata Motors (shares traded: 6.80 crore), NTPC (shares traded: 4.61 crore), Federal Bank (shares traded: 4.25 crore), SAIL (shares traded: 4.17 crore), RBL Bank (shares traded: 3.99 crore) and BHEL (shares traded: 3.61 crore) were among the most traded stocks in the session.

Stocks seeing buying interest
Linde India, HDFC Bank, Tata Communications, Dalmia Bharat and Tube Investments of India witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Friday, signalling bullish sentiment.

Stocks seeing selling pressure
Khaitan Chemicals, Sanginita Chemicals, Jump Networks and Mittal LifeStyle witnessed strong selling pressure in Friday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.

Sentiment meter favours bulls
Overall, the market breadth remained in favour of bulls. As many as 311 stocks on the BSE 500 index settled the day in green, while 186 settled the day in red.

Podcast: Why is SGX Nifty not reflecting D-Street sentiment?>>>

The market’s focus could now shift to the rising Covid cases, and any positive development on the vaccine front could prove to be a shot in the arm for the bulls. Strong Q2 earnings, abundant liquidity and solid global cues can together take Nifty to its all-time high mark. In today’s podcast with independent market expert Rajiv Nagpal, we try and figure out what the tech charts are signalling for the index, where to invest in this market, and what to make of the recent rally in bank stocks.

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