The NSE Nifty 50 declined 2.7% for the week, while the BSE Sensex fell 2.2%, recording losses for the fourth consecutive week. All sectoral indices logged weekly losses, with small-caps and mid-caps falling 6.5% and 5.8%, respectively.
Here’s how analysts gauge the market pulse:
“The Nifty slipped below recent consolidation as the lack of follow-up buying attracted selling pressure, falling decisively below 24,350. Sentiment appears extremely weak, with pullbacks likely to be sold into. Any rise toward 24,300-24,400 may be used to reduce long positions. Near-term support is at 24,000; a break below this could lead to a downtrend,” said Rupak De of LKP Securities.
Jatin Gedia of Sharekhan noted, “On the daily charts, the Nifty, after a one-day pause, has resumed its fall, reaching 24,000–24,050, which coincides with psychological support and the daily lower Bollinger band, likely restricting sharp declines. The trend remains negative, but there could be a pullback toward 24,350, which should be seen as a selling opportunity. From a short-term perspective, 24,000 is significant.”
Here’s a look at what key indicators suggest for Monday’s action:
US Market
Wall Street finished mixed after a cautious session ahead of the US presidential election. Investors are also looking forward to major economic data next week and earnings from tech giants like Apple and Meta.The Dow Jones Industrial Average ended down 0.6%, the S&P 500 lost less than 0.1%, while the Nasdaq Composite gained 0.6%.
European Shares
Europe’s main stock index closed Friday’s choppy session flat, recording weekly losses due to weak corporate earnings from auto-related companies such as Mercedes-Benz and Valeo.
The pan-European STOXX 600 closed flat for the second straight day and logged its first weekly loss in three, with real estate stocks among the worst-hit sectors.
Auto stocks ended muted, with Germany’s Mercedes-Benz dropping 1% after its third-quarter earnings missed estimates.
Tech View: Long Bearish Candle
The Nifty formed a long bearish candle on the weekly chart, indicating continued pressure in the near term. However, there is potential for a minor pullback or sideways consolidation in the next one to two days after Friday’s sharp fall.
In open interest (OI) data, the highest OI on the call side was at the 24,400 and 24,300 strike prices, while on the put side, it was at 24,200, followed by 24,100.
Stocks Showing Bullish Bias
Momentum indicator MACD showed bullish signals for Axis Bank, IDBI Bank, Aster DM Healthcare, Coforge, Shree Cements, and CSB Bank. The MACD indicates potential upward movement when it crosses above the signal line.
Stocks Signaling Weakness Ahead
The MACD showed bearish signs for Birlasoft, Nippon Life AMC, Narayana Hrudayalaya, Abbott India, Sun Pharma Advanced Research, and MCX, indicating these stocks may be starting a downward trend.
Most Active Stocks in Value Terms
IndusInd Bank (Rs 6,101 crore), Dixon Technologies (Rs 5,795 crore), RIL (Rs 2,473 crore), HDFC Bank (Rs 2,274 crore), ICICI Bank (Rs 1,693 crore), Zomato (Rs 1,678 crore), and Axis Bank (Rs 1,513 crore) were among the most active stocks on the NSE in value terms, highlighting trading turnover.
Most Active Stocks in Volume Terms
YES Bank (9.7 crore shares), Zomato (6.6 crore shares), IDFC First Bank (6.4 crore shares), JP Power (5.9 crore shares), IndusInd Bank (5.6 crore shares), Suzlon Energy (4.9 crore shares), and BEL (4 crore shares) were among the most traded stocks.
Stocks Showing Buying Interest
Deepak Fertilisers, Radico Khaitan, Dixon Technologies, Coforge, and Max Financial saw strong buying interest, reaching fresh 52-week highs.
Stocks Seeing Selling Pressure
Shares of IndusInd Bank, Poonawalla Fincorp, Bandhan Bank, ITI, Zee Entertainment Enterprises, IDFC First Bank, and Syrma SGS Technology hit their 52-week lows, signaling bearish sentiment.
Sentiment Meter Favours Bears
Overall, market breadth favored bears, with 3,215 stocks ending in the red, while 738 closed in the green.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
