Ahead of Market: 10 things that will decide stock market action on Monday

The Indian market ended higher on Friday, with the Sensex and Nifty a four-day losing run, as a cooler-than-expected U.S. inflation reading lifted global risk appetite and rekindled expectations of Federal Reserve rate cuts in the year ahead. The constructive mood mirrored gains across Asian markets, among other supportive cues.

The S&P BSE Sensex rose over 447 points or 0.53%, to close above 84,929, while the NSE Nifty 50 gained over 151 points or 0.58%, to close at above 25,966.

Here's how analysts read the market pulse:

Global equities rallied as U.S. CPI undershot estimates, reinforcing expectations of a softer Fed stance despite concerns over data reliability amid the shutdown, said Vinod Nair, Head of Research at Geojit Investments, adding that investors now look for signals on the Fed’s 2026 easing trajectory.

“Meanwhile, the BoJ raised its policy rate by 25 bps to a three-decade high, a move that could reshape global liquidity trends. Domestically, strong global cues and bargain hunting lifted indices, with large-cap stocks leading gains. Oil prices continued to soften on oversupply concerns and subdued growth outlook. While sentiment remains constructive, near-term volatility may persist amid uncertainty over trade deal timelines and upcoming macro data releases," said Nair.

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US markets

U.S. stocks ended higher Friday, paring a volatile week as a rebound in technology shares outweighed losses in consumer names such as Nike.

Gains in megacaps built on Thursday’s rally, sparked by strong forecasts from Micron Technology that revived investor appetite for artificial-intelligence stocks after a recent pullback over valuation and funding concerns. Micron climbed 7% to a record close, while Nvidia advanced 3.9% after the U.S. began a review that could pave the way for initial shipments to China of its second-most powerful AI chip.

The Dow Jones Industrial Average added 183 points, or 0.4%, to 48,134.89. The S&P 500 rose 0.9% to 6,834.50, and the Nasdaq Composite climbed 1.3% to 23,307.62.

European Markets

European shares closed at a record on Friday, led by gains in defence and insurance stocks, as investors regained confidence after an earlier selloff with only a few sessions left in the year.

The pan-European STOXX 600 rose 0.4% to 587.50, extending a rebound that followed its strongest one-day gain in more than three weeks and leaving the index up 1.7% for the week.

Tech View

The Nifty has witnessed a breakout from a falling wedge pattern, indicating improving market sentiment, said Rupak De, Senior Technical Analyst at LKP Securities, adding that the index has reclaimed the 21-day EMA on the daily chart.

“After finding support near the 50-day EMA, the index recovered towards the 26,000 mark. Going forward, 26,000 will be a key level to watch; a decisive move above this level could propel the index towards 26,300. On the downside, immediate support is placed at 25,900, which is likely to act as the first line of defense for the Nifty," said De.

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Most active stocks in terms of turnover

InterGlobe Aviation (Rs 4,680), Shriram Finance (Rs 3,143 crore), Tata Motors PV (Rs 2,610 crore), HDFC Bank (Rs 2,556 crore), RIL (Rs 2,183 crore), Infosys (Rs 2,156 crore) and Bharti Airtel (Rs 2,122 crore) were among the most active stocks on BSE in value terms. Higher activity in a counter in value terms can help identify the counters with highest trading turnovers in the day.

Most active stocks in volume terms

Vodafone Idea (Traded shares: 124.11 crore), Ola Electric Mobility (Traded shares: 25.2 crore), YES Bank (Traded shares: 8.69 crore), Tata Motors PV (Traded shares: 7.40 crore), IDFC First Bank (Traded shares: 6.55 crore), Sagility India (Traded shares: 5.86 crore) and Reliance Power (Traded shares: 5.21 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of Ola Electric Mobility, Advent Hotels International, Tata Elxsi, Authum Investment & Infrastructure, ITI Ltd, Motherson Sumi Wiring India and Ather Energy were among the stocks that witnessed strong buying interest from market participants.

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52 Week high

Over 100 stocks hit their 52-week highs today while 179 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Titan and Ashok Leyland.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Aditya Birla Lifestyle Brands, Blue Star, Five-Star Business Finance, Siemens Energy India, Kirloskar Oil Engines, Aditya Birla Sun Life AMC and Nippon Life India Asset Management.

Sentiment meter bullish

The market sentiments were bullish. Out of the 4,331 stocks that traded on the BSE on Friday, 1,445 stocks witnessed declines, 2,731 saw advances, while 155 stocks remained unchanged.

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