Ahead of Market: 10 Things That Will Determine Stock Market Action on Monday

Indian benchmark indices closed higher on buying interest in consumer and private banking stocks, although gains were limited by selling pressure in auto, IT and pharmaceutical names. While Nifty ended at 25,693.70, up 50.90 points or 0.20%, the BSE Sensex advanced 266.47 points or 0.32% to 83,580.40.Meanwhile, the volatility gauge India VIX ended at 11.94, down 1.86% from the last close.

This is how analysts read the market pulse:

Commenting on the day’s trends, Rupak De, Senior Technical Analyst at LKP Securities said that the index has consolidated over the past few sessions. The support is at 25,500 on the downside while the resistance on the upside is around 25,700, he added. “In the short term, the index is likely to remain in the range of 25,500 to 25,700. A decisive break either side of this range could trigger a change in direction,” De said.

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Technical view

Nilesh Jain, Head – Technical and Derivatives Research Analyst at Centrum Broking said Nifty has formed a strong bullish candle on the weekly chart as the index has broken its two-week losing streak. It witnessed a sharp recovery from lower levels and managed to close above the 100-DMA at 25,660, he added.

“Momentum indicators have turned supportive on the daily chart, with the RSI recovering from the oversold zone and crossing above 50, indicating an improvement in strength. Meanwhile, the India VIX cooled sharply by 20% during the week to close around 12. Any further decline in volatility would provide additional comfort to the bulls. Overall, the structure for Nifty looks positive with upside potential towards 26,000 levels, and a buy-on-dips strategy remains advisable as long as the index remains above 25,250,” Jain said.

Most active stocks in terms of turnover

ITC (Policybazaar, Rs 315 crore), Hindustan Copper (Rs 216 crore), Bharat Forge (Rs 211 crore), Tube Investments of India (Rs 191 crore), Persistent Systems (Rs 181 crore), Kaynes (Rs 169 crore) and LIC (Rs 158 crore) were among the most active stocks in the market. BSE in value terms. Higher activity in a counter in terms of value can help identify the counters with the highest trading turnover per day.

Most active stocks by volume

Vodafone Idea (Shares traded: Rs 4.40 crore), ITC (Shares traded: Rs 97.28 lakh), Suzlon (Shares traded: Rs 88.33 crore), PC Jewelers (Shares traded: Rs 85.24 lakh), SpiceJet (Shares traded: Rs 54.44 lakh), Yes Bank (Shares traded: Rs 52.17) and RPower (Shares traded: Rs 54.44 lakh) 52.04 lakh) were among the most actively traded stocks on BSE by volume.

Stocks that show buying interest

LIC, Hitachi Energy, Godfrey Phillips, Concord Biotech, MRF, Data Patterns and Nykaa were among the stocks that witnessed strong buying interest from market participants.

52 Week High

Today, 83 stocks hit their 52-week highs, while 107 stocks fell to their 52-week lows. Among those that hit their 52-week highs were APL Apollo, Corona Remedies, IOC, Jindal Steel, FSN E-Commerce (Nykaa), SAIL and Shard Cropchem.

Stocks see selling pressure

Among the large cap names were HDFC Life, TCS and Tech Mahindra. Other stocks that witnessed significant selling pressure were BEML, One Mobikwik Systems, eClerx Services, Solara Active Pharma Sciences, Tracxn Technologies and CL Educate.

Sentiment meter favors bears

Although action in heavyweights like Trent, Max Healthcare Institute and Tata Steel attracted the markets the most. In broader markets, breadth remained negative. Of the 4,359 stocks traded on the BSE on Friday, February 6, 1,885 stocks witnessed gains, 2,309 declined while 165 stocks remained unchanged.

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