Both the NSE Nifty 50 index and BSE Sensex rose about 2.3% in the week, extending gains for the seventh consecutive week, marking their longest winning run since January 2018.
IT companies, drawing a significant share of their revenue from the US, rallied 7.16% this week, logging their best week in 26 months.
Here’s how analysts read the market pulse:
“The prevailing sentiment appears strongly in favor of the bulls, as indicated by the absence of any reversal signals on the technical charts. Resistance is observed at 21,500, while a potential further rally in the Nifty could occur upon breaching this level. Support is currently positioned at 21,300,” said Rupak De, LKP Securities.
Jatin Gedia, Sharekhan, said, “On the daily charts we can observe that the Nifty has been stretching higher towards 21500. The rally has been perpendicular in nature and still we see no signs of weakness on the price front. The daily momentum indicator has a positive crossover however it has not registered a new high indicating that a negative divergence is in process. However, until we get signs of weakness on the price front we shall continue to ride the upmove. On the upside, the short term target is placed at 21500.”
That said, here’s a look at what some key indicators are suggesting for Monday’s action:
US market
Wall Street stocks wobbled to a mixed close and the dollar bounced back on Friday as market participants caught their breath at the end of a week loaded with central bank policy decisions and crucial economic data.
All three major U.S stock indexes oscillated for much of the session, but by closing bell the S&P 500 was nominally lower, the Dow was modestly higher and interest rate-sensitive tech- and tech-adjacent momentum stocks put the Nasdaq out front.
The Dow Jones Industrial Average rose 0.15%, the S&P 500 lost 0.01% and the Nasdaq Composite surged 0.35%.
European shares
European shares inched up on the final day of a week marked by major central bank policy decisions, in which the US Federal Reserve set the tone for market expectations about interest rate cuts being on the horizon.
The pan-European STOXX 600 edged 0.1% higher on Friday, posting its fifth straight weekly advance and recording its longest weekly winning streak since April.
Tech View: Green candle
Nifty on Friday ended 274 points higher to new lifetime high levels and formed a green candle on the daily and weekly charts.
Further upsides are likely once the immediate resistance of 21492 is taken out. Caution is however warranted for the near term as the 14-day RSI at 84.93 is in overbought territory. Thus, any short-term corrections can be utilized to buy into quality stocks, said Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Zensar Technologies, Amber Enterprises, Godawari Power, Team Lease, Service, Kaynes Technology, and SKF India 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 EIH, Prince Pipes, UTI AMC, AIA Engineering, Kalpataru Power, and Gland Pharma 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 11,492 crore), TCS (Rs 3,250 crore), Infosys (Rs 2,871 crore), RIL (Rs 1,981 crore), SBI (Rs 1,902 crore), ICICI Bank (Rs 1,480 crore), and Adani Enterprises (Rs 1,458 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: 7.7 crore), HDFC Bank (Shares traded: 6.9 crore), Power Grid (Shares traded: 4.1 crore), SBI (Shares traded: 2.9 crore), NTPC (Shares traded: 2.8 crore), ONGC (Shares traded: 2.2 crore), and Wipro (Shares traded: 2 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of HCL Tech, TCS, SBI, Tata Steel, NTPC, Tech Mahindra, and LTIMindtree among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure
No major stock hit its 52-week low on Friday.
Sentiment meter favours bulls
Overall, market breadth favoured bulls as 1,931 stocks ended in the green, while 1,842 names settled in the red.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
