Markets are still volatile in the near future, thanks to rising inflation and interest rate concerns. Analysts advise investors to be cautious and relieved in the current market conditions.
This is how experts read the market pulse: –
Mazhar Mohammad of Chartviewindia.in said that bear candles on the weekly list, for the fourth week in a row, are emphasizing the bears’ dominance in the market.
“Nifty appears to have supported 16,350 points before showing a concentration within the day. Typically, the Doji formation following a reasonable vulnerability alert for a reversal of the upside trend. Nagaraj Shetti at HDFC Securities.
That being said, here’s a look at what some key indicators suggest for Monday’s action:
US equities: S&P 500, Nasdaq, Dow close negative
US equities fell on Friday and ended the week lower as investors included a key report on the recovery situation in the labor market, which underlined even more solid conditions in the labor market. The S&P 500 fell 0.6% on Friday to 4,123.67. The Nasdaq Composite was down 1.4% to 12,144.66. The Dow fell almost 100 points to 32,901.08. The day before, the S&P 500 was down 3.6%, while the Nasdaq was down 5%, the worst day since June 2020. The Dow had lost more than 1,000 points.
European stock markets retreat
European markets retreated on Friday, following international caution after Wall Street posted its worst day since 2020. The pan-European Stoxx 600 fell 1.6% at the close, with retail shares falling 2% as almost all sectors and major stock exchanges ended negative level. Shares in oil and gas rose by 0.7%. In the UK, the FTSE 100 has fallen as fears of rising inflation and the impending economic contraction grip the world market.
Technical view: An indefinite Doji candle formed
Nifty50 on Friday started in the range down but avoided further fall to end by making an indefinite Doji candle on the daily chart. The index has been below its main moving averages now. Analysts said that although a small jump can not be ruled out, it is unlikely that the continuing pain in the market will decrease in the near future.
R&D: The trend remains negative
The trend continues to be negative and the ‘RSI’ swing in the daily chart has not yet entered the sales area to try to reverse, said Ruchit Jain, Lead – Research, 5paisa.com.
“The 20 EMA” on the hourglass has acted as resistance in the last rounds, which is now set around 16640 and is the obstacle for Nifty, “he added. “On the back, the bearish pattern has given a projection of 16125 and therefore 16200-16125 ranges to match.”
Stocks show bullish bias
Moving Average Convergence Divergence (MACD) momentum showed a bullish trading setup on Power Grid counters, ABB India, Gujarat Gas, Cosmo Films, SMC Global, Jet Airways, Supreme Industries and Silver Touch Technologies.
The MACD is known for indicating a turnaround in traded securities or indices. When the MACD crosses the mark line, it gives a bullish signal, indicating that the price of the stock could see an upward movement and vice versa.
Shares indicate weakness ahead
MACD showed bearish signs on the tables of Indian Hotels, Apollo Tires, Bombay Dyeing, Hindustan Unilever, Karanatak Bank, Biocon and DCM Shriram. Bearish crossover on the MACD on this counter indicated that they were just starting down.
The most active shares in terms of value
Reliance Industries (Rs 2,375.22 million), Bajaj Finance (Rs 1,854.56 million), HDFC Bank (Rs 1,766.90 million), Axis Bank (Rs 1,050.67 million), Tata Motors (Rs 1,032 Rs 9,032), Rs 9,032 Rs. . Rs 913.82 crore) were among the most active stocks on the NSE in terms of value. Greater value on the counter in terms of value can help identify the counter with the highest turnover in the day’s trading.
The most active shares in terms of volume
ITC (trading: 3.45 million), Tata Motors (trading: 2.51 million), NTPC (trading: 2.26 million), ONGC (trading: 1.68 million), SBI (stock trading: 1.67 million), Axis Bank (stock trading: 1.55 crore) and Coal India (stock trading: 1.42 crore) were among the most traded stocks on the NSE.
Shares that show buying interest:
None of the stocks showed strong buying interest from market participants as no measure reached its fresh 52-week highs, which indicated a bullish attitude.
Shares see selling pressure
Dilip Buildcon, Info Edge, Nazara Technologies, Hindustan Copper, Infibeam Avenues, Strides Shasun and PNB Housing Finance witnessed strong sales pressure and reached the lowest 52-week low, indicating that sentiment was high in the camp.
The emotion meter is in favor of a bear
Overall, the market width was supported by losers, with 758 stocks ending in green and 2,615 names accepting the cut.
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