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

The Indian market advanced on Friday, supported by gains in financial heavyweights amid renewed inflows of foreign portfolio investors (FPIs) over the past three sessions. Optimism ahead of the quarterly earnings season added to the bullish sentiment, although Tata Consultancy Services (TCS) limited broader gains after reporting weaker-than-expected quarterly results in September.

The S&P BSE Sensex rose 328.72 points, or 0.40%, to close at 82,500.82, while the NSE Nifty 50 gained 103.55 points, or 0.41%, to settle at 25,285.35.

This is how analysts read the market pulse:

Indian shares closed higher, led by strong gains in banking and pharmaceutical stocks, as investor sentiment improved following the government’s invitation to private sector professionals to head the State Bank of India. Vinod Nair, head of research at Geojit Investments, noted that this marks a broader policy shift towards private participation in public sector companies, aimed at improving efficiency and governance.

“Pharma stocks rallied after the US revived the Biosecure Act, aimed at restricting biotech ties with foreign flagged companies, especially from China, giving a strong boost to Indian CDMOs. With earnings season underway, investors are closely watching quarterly earnings for clues on the market’s direction,” Nair added to it.

Also read | 5 Wall Street Moguls Who Dismissed Bitcoin as a Fad – Guess What They’re Saying Now!

American markets

Wall Street slumped on Friday after US President Donald Trump escalated his trade confrontation with China, announcing late in the day plans to impose an additional 100% tariff on Chinese imports and new export controls on crucial US-made software. The move followed Beijing’s tightening of restrictions on rare earth exports, raising fears of a renewed trade war and sending Big Tech shares tumbling after hours.

Nvidia, Tesla, Amazon and Advanced Micro Devices each fell more than 2% in late trading. The Dow Jones Industrial Average fell 878.82 points, or 1.9%, to 45,479.60, while the S&P 500 fell 182.60 points, or 2.71%, to 6,552.51. The Nasdaq Composite fell 820.20 points, or 3.56%, to 22,204.43.

European markets

European shares were little changed on Friday but remained on track for a third straight weekly gain as investors focused on French politics ahead of President Emmanuel Macron’s expected announcement of a new prime minister.

The pan-European STOXX 600 was hovering around the flat at 571.2 points by 0906 GMT, putting the benchmark on track for a modest weekly gain of 0.1%.

Technical view

The Nifty remained strong on Friday, breaking out of the recent consolidation range, said Rupak De, Senior Technical Analyst at LKP Securities, adding that the trend remains positive as it remains above critical moving averages.

“The setup looks favorable for further short-term gains. Any dip would provide a good opportunity to enter long trades. On the upside, the Nifty could move towards 25,500-25,550 while support is placed at 25,150. A decline below 25,150 could weaken the trend somewhat,” De said.

Also read | Warren Buffett’s Biggest Investment Isn’t Apple, BofA or Coca-Cola – It’s a Stock Hidden in Plain Sight

Most active stocks in terms of turnover

Tata Communications (Rs 2,720 crore), TCS (Rs 2,674 crore), BSE (Rs 1,737 crore), Tata Investment (Rs 1,674 crore), Netweb Technologies (Rs 1,501 crore), HDFC Bank (Rs 1,352 crore) and YES Bank (Rs 1,312 crore) were among the most active stocks on BSE in value terms. Higher activity in terms of value helps identify counters with the highest trading turnover of the day.

Most active stocks by volume

Vodafone Idea (70.17 crore shares), YES Bank (55.12 crore shares), Reliance Power (11.98 crore shares), JP Power (6.61 crore shares), Suzlon Energy (5.89 crore shares), PNB (4.08 crore shares) and Sagility India (3.84 crore shares) were among the most actively traded shares by volume on NSE.

Stocks that show buying interest

Shares of Tata Communications, Reliance Power, Redington, YES Bank, PG Electroplast, Divis Labs and Jyoti CNC Automation witnessed strong buying interest from market participants.

Also read | Explained: What is China’s anti-involution shift and how will it impact Indian equities?

52 weeks high

More than 171 stocks hit their 52-week highs today, while 105 stocks fell to their 52-week lows. Stocks that hit 52-week highs included SBI and Eternal.

Stocks see selling pressure

Stocks that witnessed significant selling pressure included Tata Steel, TCS, Tech Mahindra, Titan, Bajaj Finserv, Tata Motors and Bharti Airtel.

Sentiment meter bullish

Market sentiment was bullish. Of the 4,343 shares traded on BSE on Friday, 2,424 shares advanced, 1,766 declined and 153 remained unchanged.

Also read | Ola Electric vs Ather Energy shares: Which EV bet looks best for your portfolio right now?

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