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

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

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The Indian market closed sharply higher on Friday, the second trading session of the new year, with the Nifty 50 hitting a new record high as a broad rally took place. Strong business updates boosted earnings expectations and improved investor sentiment across sectors.The Nifty 50 climbed as much as 193.45 points during the session to a record high of 26,340 before closing at 26,328.55, up 182 points or 0.7%. The BSE Sensex advanced 573 points, or 0.67%, to close at 85,762.

This is how analysts read the market pulse:
After the New Year holidays, global markets started 2026 on a positive note as strong domestic auto sales helped Indian stocks reach a new record high, said Vinod Nair, head of research at Geojit Investments. He added that investor sentiment remains broadly constructive as attention turns to third-quarter earnings, which are expected to determine the near-term direction of the market.“Supportive fiscal policies and gradual monetary easing are likely to shape the investment landscape in 2026. However, investors are focusing on large-cap stocks for stability while selectively exploring mid-cap opportunities in cyclical sectors and areas driven by domestic growth,” Nair said.

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American markets
U.S. stocks finished mixed on Friday, with the Dow Jones Industrial Average and S&P 500 closing higher to kick off 2026 and snapping a four-session decline as the strength of chipmakers like Nvidia and Intel, along with Boeing’s gains, supported sentiment.

The Dow Jones rose 319.10 points, or 0.66%, to close at 48,382.39, while the S&P 500 added 12.97 points, or 0.19%, to close at 6,858.47. The Nasdaq Composite moved lower, falling 6.36 points (0.03%) to 23,235.63.European markets
European shares started 2026 on strong footing, climbing to record levels on Friday and extending last year’s rally, while gains in technology and defense stocks boosted regional markets.

The pan-European STOXX 600 index rose 0.7% to 596.14, staying within striking distance of the closely watched 600 level as investors returned from the New Year holidays. The benchmark also recorded its third straight weekly gain.

Technical view
The index has broken its previous swing high, reinforcing the positive trend bias, and the bullish crossover of the 20-day and 50-day EMAs further strengthens the upside structure, said Rupak De, Senior Technical Analyst at LKP Securities. He added that the daily RSI has broken through the previous consolidation phase, signaling a recovery in momentum.

“The trend is expected to remain firm in the short term, with a buy-on-dips approach favoring the bulls as long as the index remains above 26,000. On the upside, a decisive move above 26,350 could open the door for a move towards 26,600 in the near term,” De said.

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Most active stocks by turnover
ITC (Rs 4,153 crore), Hindustan Copper (Rs 2,265 crore), Vodafone Idea (Rs 1,711 crore), IDBI Bank (Rs 1,515 crore), Coal India Ltd (Rs 1,476 crore), Godfrey Philips (Rs 1,311 crore) and Transformers & Rectifiers (Rs 1,304 crore) were among the most active by value shares on the BSE. Higher activity in terms of value helps identify stocks with the highest trading turnover during the session.

Most active stocks by volume
Vodafone Idea (shares traded: Rs 144.64 crore), Ola Electric Mobility (Rs 28.5 crore), IDBI Bank (Rs 13.5 crore), ITC (Rs 11.87 crore), YES Bank (Rs 11.48 crore), SJVN (Rs 8.22 crore) and Suzlon Energy (Rs 5.95 crore) were among the most actively traded stocks on the NSE by volume.

Stocks that show buying interest
Shares of SJVN, IDBI Bank, Transformers & Rectifiers, Bosch, Ola Electric Mobility, Coal India Ltd and JBM Auto were among the stocks that witnessed strong buying interest from market participants.

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Highs and lows in 52 weeks
More than 185 stocks hit their 52-week highs on Friday, while 83 stocks fell to their 52-week lows. Among those that hit new 52-week highs were Maruti Suzuki and Mahindra & Mahindra.

Stocks see selling pressure
Stocks that witnessed significant selling pressure included ITC, Nestle India, Kotak Mahindra Bank, Axis Bank, Bharti Airtel, InterGlobe Aviation and UltraTech Cement.

Sentiment Meter: Bullish
Market sentiment remained bullish. Of the 4,371 shares trading on the BSE on Friday, 2,711 advanced, 1,524 declined and 136 remained unchanged.

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

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