Ahead of Market: 10 things that will decide stock market action on Monday
Sensex gained 363 points to close at 76,515 while Nifty 50 rose over 24 points to end the session below 23,898 on Friday. Broader markets closed mixed, with Nifty Midcap 100 slipping into the red, while Nifty Smallcap 100 closed in the green.
Here’s how analysts read the market pulse
Indian equities witnessed a relief rally as concerns over an imminent US Fed rate hike eased, said Vinod Nair, Head of Research at Geojit Financial Services. He, however, noted that the gains remained capped due to profit booking at higher levels and persistent geopolitical tensions in the Middle East.
Investor focus remains on the US employment data due later today, while next week’s US CPI print will be crucial in assessing the interest rate outlook, the analyst said. “Consensus expectations of a marginal decline in core inflation for August could strengthen expectations of a pause in Fed rate hikes and help contain bond yield volatility. On the domestic front, stock- and sector-specific buying remained evident across the broader market, with small-cap indices touching fresh intraday lifetime highs. Strong earnings momentum, resilient economic growth, and robust domestic demand continue to underpin investor confidence in the broader market,” he added.
US stocks
Wall Street ended lower on Friday as stronger-than-expected August jobs data boosted bets that the US Federal Reserve could raise interest rates this month. The Dow fell 0.51%, the S&P 500 0.38% and the Nasdaq 0.29%, while the three indexes were broadly flat for the week. The US economy added 162,000 jobs in August, nearly three times the 56,000 consensus, while unemployment held at 4.1%. Lululemon plunged 17.4% after cutting its full-year forecasts, while Adobe fell 6.7% after naming a new CEO. Investors now await next week’s CPI and PPI data for further clues on the Fed’s policy path. European markets
European shares ended slightly higher on Friday but recorded a 0.8% weekly decline, pressured by Middle East tensions, higher crude prices, inflation concerns and expectations of prolonged central bank tightening. The STOXX 600 rose 0.1% to 649.88. Strong US payrolls data also lifted expectations of a September Fed rate hike, while investors await US inflation data next week. Volkswagen gained 5.9% after approving a turnaround plan, lifting the European autos index 1.1%.
Tech view
Nifty remained extremely sideways during the day as traders stayed on the sidelines ahead of the important US non-farm payroll and unemployment data, which could have a significant bearing on the Fed’s rate decision, said Rupak De, Senior Technical Analyst at LKP Securities.
“The short-term trend is likely to remain weak as the index continues to trade below the 50-EMA on the hourly chart. A sell-on-rise sentiment may continue to prevail as long as the index remains below the 24,000–24,200 zone. On the lower end, support is placed at 23,830 and 23,700,” the analyst added.
Most active stocks in terms of turnover
Swiggy (Rs 5,089 crore), IFCI (Rs 4,197 crore), BSE (Rs 2,739 crore), RIL (Rs 1,727 crore), Tejas Networks (Rs 1,590 crore), New India Assurance (Rs 1,493 crore), and Polycab India (Rs 1,302 crore) were among the most active stocks on NSE in value terms. Higher activity in a counter in value terms can help identify the counters with the highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Traded shares: 52.55 crore), IFCI (Traded shares: 40.73 crore), Swiggy (Traded shares: 18.35 crore), New India Assurance (Traded shares: 6.69 crore), Physicswallah (Traded shares: 6.21 crore), Suzlon Energy (Traded shares: 5.53 crore) and Pine Labs (Traded shares: 4.66 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
New India Assurance, Tejas Networks, Wockhardt, Affle (India), Pine Labs, Supreme Petro and IGL were among the stocks that witnessed strong buying interest from market participants.
52-week high
Among the ones which hit their 52-week highs on NSE included New India Assurance, IFCI, ACME Solar Holdings, Welspun India, Capri Global, Elgi Equipments and Lenskart Solutions.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were KEI Industries, R R Kabel, Polycab India, Finolex Cables, Havells India, Poly Medicure and Ramkrishna Forgings.
52-week low
Among the ones which hit their 52-week lows on NSE included Swan Energy, ICICI Lombard, Bikaji Foods International, Dabur India, Mahindra CIE, HUL and GIC.
Sentiment meter favours bulls
Out of the 3,648 stocks that traded on the NSE on 4 September, Friday, 2,017 stocks witnessed advances, 1,519 saw declines while 112 stocks remained unchanged.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
