Here’s how analysts read the market pulse:
“Nifty started higher and extended gains during the day. The daily momentum indicator RSI remains in a positive crossover. The trend looks positive as long as it sustains above 18350 Going forward, 18350 may provide immediate support. On the higher end, resistance is visible at 18650, above which Nifty may move up further,” Rupak De, Senior Technical Analyst at LKP Securities, said.
“After choppy movement, the buying finally emerged at highs, and the immediate resistance of 18400 has been taken out on the upside. The Nifty is expected to move above another landmark of 18606 levels (an all-time high of Oct 21) and to form new all time highs in the short term. Immediate support is at 18400.” Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said.
That said, here’s a look at what some key indicators are suggesting for Monday’s action:
European stocks gained and the dollar fell after the US Federal Reserve meeting minutes signalled a slowdown in its pace of interest rate hikes. The pan-European Stoxx 60 was up over 0.4% by late afternoon, a third straight session of gains taking it to a more than 3-month high.
US markets were shut on Thursday for the Thanksgiving holiday.
Tech View: Nifty forms long bull candle
Headline equity index Nifty today formed a healthy bullish candle on the daily chart, which indicates an attempt at a sharp upside breakout of the crucial resistance around 18,400 levels. The index has been making higher lows in the last three sessions. Today’s upside was partly led by the winding up of short positions on the monthly derivatives expiry day.
“Now, Nifty has to hold above 18350 zones for an up move towards 18600, then 18881 zones, whereas supports are placed at 18250 and 18188 zones,” said Chandan Taparia of Motilal Oswal.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of
, , , GSFC, Mastek and MMTC 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
, JBM Auto, & Industries, HCL Tech, Hindalco and Dilip Buildcon, among others.
A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.
Most active stocks in value terms
HDFC Bank (Rs 1,388 crore), RIL (1,111 crore),
(Rs 1,086 crore), ICICI Bank (Rs 1,013 crore), (Rs 868 crore), Infosys (Rs 853 crore) and HDFC Life (Rs 599 crore) 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 the highest trading turnovers in the day.
Most active stocks in volume terms
Tata Steel (Shares traded: 2.4 crore), ONGC (Shares traded: 1.2 crore), NTPC (Shares traded: 1.1 crore), ICICI Bank (Shares traded: 1.1 crore) HDFC Life (Shares traded: 1.1 crore), SBI (Shares traded: 90 Lakh) and HDFC Bank (Shares traded: 86 lakh) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of SJVN,
, , , , and Cera Sanitary witnessed strong buying interest as they scaled fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Shares of Quess Corp,
, , Indigo Paints, Motilal Oswal, SIS India and witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bulls
Overall, market breadth favoured bulls as 1,935 stocks ended in the green, while 1,570 names settled with cuts.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)