Ahead of Market: 10 things that will decide D-Street action on Monday

Domestic stock markets ended lower on a volatile Friday, dragged by banking, metal and realty stocks, breaking their two-session winning streak. Nifty declined 46.10 points, or 0.19%, to close at 23,643.50, while the BSE Sensex settled at 75,237.99, down 160.73 points, or 0.21%.

Meanwhile, the volatility gauge India VIX ended at 18.79, up 0.95% from the previous close.

Here's how analysts read the market pulse:

Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty index slipped from the support-turned-resistance zone of 23,800. The index has been forming lower tops on the daily chart, indicating a bearish setup, while facing strong resistance at the 20-EMA on the daily timeframe and the 50-EMA on the weekly timeframe.

“India VIX has surged nearly 9% from the day’s low following the breakout in Brent crude prices. The RSI remains in a bearish crossover and continues to decline, indicating weak momentum. In the near term, the index may witness renewed selling pressure once Nifty falls below 23,500. On the downside, a breach below 23,500 could drag the index towards 23,150 and possibly lower levels. On the upside, 23,800 is expected to continue acting as a key short-term point of polarity,” De added.

US markets
Frontline indices ended with sharp cuts on Friday as elevated crude oil prices weighed on Wall Street.

The Dow Jones Industrial Average closed at 49,526.17, falling 537.29 points, or 1.07%, while the S&P 500 ended 1.24% lower at 7,408.50. The tech-heavy Nasdaq Composite, however, rose 410.08 points, or 1.54%, to 26,225.14.

European markets
Most major European indices traded in the red on Friday. The UK’s FTSE 100, Germany’s DAX, Stoxx 600, French CAC 40, and Spain’s IBEX 35 fell between 1.05% and 2.07%.

Tech View
Decoding the Nifty charts, Ajit Mishra, Senior Vice President, Research at Religare Broking, said the index has witnessed a decisive breakdown from its consolidation range of 23,800–24,500, indicating a weakening market structure in the near term. Although the index has attempted a rebound in recent sessions, the 23,800–24,000 zone, which earlier acted as support, is now likely to serve as an immediate resistance zone, he said.

“A decisive move above this band could trigger short covering and pave the way toward 24,500. On the downside, 23,150 remains a critical support level to watch, followed by the next key support near 22,900,” Mishra added.

Most active stocks (turnover)
Nazara Technologies (Rs 563 crore), Reliance Industries (RIL, Rs 293 crore), Kaynes Technologies (Rs 261 crore), Bharti Airtel (Rs 255 crore), Adani Enterprises (Rs 278 crore), and Larsen & Toubro (L&T, Rs 307 crore) were among the most active stocks on the BSE in value terms. Higher activity in a counter by value helps identify the stocks with the highest trading turnover during the day.

Most active stocks (volume)
Vodafone Idea (4.97 crore shares), JP Power (1.6 crore shares), YES Bank (95.02 lakh shares), Axis Bank (80.98 lakh shares), Suzlon Energy (65.50 lakh shares), Indraprastha Gas (IGL, 59.17 lakh shares), and SpiceJet (57.67 lakh shares) were among the most actively traded stocks on the BSE in volume terms.

Stocks showing buying interest
Welspun Living, Tata Motors, Atlantaa, Shadowfax Technologies, Nazara Technologies, Wakefit Innovations, and Sakar Healthcare were among the stocks that witnessed strong buying interest from market participants.

52-week highs/lows
As many as 109 stocks hit their 52-week highs, while 47 stocks slipped to their 52-week lows. Among the stocks hitting 52-week highs were Adani Enterprises, Adani Green Energy, Biocon, Carborundum Universal, Clean Max Enviro Energy Solutions, Honasa Consumer, Laurus Labs, and MCX.

Stocks under selling pressure
Among large-cap names, Hindalco Industries, Eternal, and Nestle India saw notable selling pressure. Other stocks under pressure included Data Patterns, Muthoot Finance, Hindustan Aeronautics Ltd (HAL), Housing and Urban Development Corporation (HUDCO), NAVA, and Mold-Tek Technologies.

Sentiment meter favours bears
Sensex ended with sharp cuts, dragged by Reliance Industries (RIL), State Bank of India (SBI), and Mahindra & Mahindra, with broader market breadth remaining negative. Out of 4,345 stocks traded on the BSE on Friday, 1,619 advanced, 2,566 declined, and 160 remained unchanged.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)