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

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

The Indian market ended higher on Friday, with the Sensex and the Nifty on a four-day losing streak, as cooler-than-expected inflation in the US lifted global risk appetite and revived expectations of Federal Reserve rate cuts in the coming year. The constructive mood reflected gains in Asian markets, among other supportive signals.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 over 25,966.

This is how analysts read the market pulse:

Global stocks rose as the US CPI undershot expectations, reinforcing expectations of a dovish Fed stance despite concerns over data reliability during the shutdown, said Vinod Nair, head of research at Geojit Investments, adding that investors are now watching for signals on the Fed’s easing path in 2026.”Meanwhile, the BoJ has raised its key rate by 25 basis points to a three-decade high, a move that could change global liquidity trends. Domestically, strong global cues and bargain hunting have boosted indices, with large-cap stocks leading the gains. Oil prices continued to soften on oversupply concerns and subdued growth prospects. While sentiment remains constructive, near-term volatility may persist amid uncertainty over trade deal timelines and upcoming macro data releases,” the CEO said. Nair.

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American markets

U.S. stocks closed higher on Friday after a volatile week as the recovery in technology stocks outweighed losses in consumer names like Nike.

Gains in megacaps built on Thursday’s rally, fueled by strong forecasts from Micron Technology that revived investor interest in artificial intelligence stocks after a recent pullback on valuation and financing concerns. Micron climbed 7% to a record high, while Nvidia rose 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 defense and insurance stocks, as investors regained confidence after an earlier sell-off with just a few sessions left in the year.

The pan-European STOXX 600 rose 0.4% to 587.50, continuing the recovery that followed the strongest one-day rise in more than three weeks, sending the index up 1.7% this week.

Technical 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 regained the 21-day EMA on the daily chart.

“After finding support around the 50-day EMA, the index recovered towards 26,000 points. Going forward, 26,000 will be an important level to watch; a decisive move above this level could push the index towards 26,300. On the other hand, immediate support is placed at 25,900, which is likely to act as the first line of defense for the Nifty,” De said.

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

Stocks that show 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

More than 100 stocks hit their 52-week highs today, while 179 stocks fell to their 52-week lows. Among those who hit their 52-week highs were Titan and Ashok Leyland.

Stocks see selling pressure

Stocks that 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

Market sentiment was bullish. Of the 4,331 shares traded on the BSE on Friday, 1,445 shares saw a decline, 2,731 rose, while 155 shares 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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