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

The Indian market ended lower on Friday, with the Sensex and Nifty snapping a three-day winning streak that had been buoyed by hopes of U.S. Federal Reserve rate cuts and progress in trade talks between New Delhi and Washington.

The S&P BSE Sensex fell 387.73 points, or 0.47%, to close at 82,626.23, while the NSE Nifty 50 dropped 96.55 points, or 0.38%, to settle at 25,327.05.

Here’s how analysts read the market pulse:

“The Indian equity market witnessed profit booking after a sustained multi-session rally, driven by anticipation of the Fed entering an easing cycle,” said Vinod Nair, Head of Research at Geojit Investments. He added that positive developments in U.S.-India trade negotiations and improved global liquidity conditions continued to support investor sentiment.

“Against the backdrop of strengthening domestic fundamentals and a weakening U.S. dollar, the environment appears conducive for a potential return of FIIs following a prolonged phase of net outflows. Sectoral rotation was evident, with PSU banks, metals, and pharma stocks leading the gains, while IT, FMCG, and private banking stocks lagged,” Nair added.

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US Markets

Wall Street’s main benchmarks closed at record highs for a second consecutive session on Friday, with trading volumes hitting their strongest levels since April, after FedEx shares climbed on upbeat earnings.Seven of the 11 S&P sector indices advanced, though energy stocks weighed on the market. The Dow Jones Industrial Average rose 172.85 points, or 0.37%, to 46,315.27. The S&P 500 added 32.40 points, or 0.49%, to 6,664.36, while the Nasdaq Composite gained 160.75 points, or 0.72%, to 22,631.48.

European Markets

European stocks ended little changed on Friday, closing out an eventful week on a subdued note as sentiment was dominated by a series of major central bank decisions, including the U.S. Federal Reserve’s widely anticipated rate cut.

The pan-European STOXX 600 slipped 0.04% to 554.81, leaving it broadly flat for the week.

Tech View

In technical terms, the Nifty slipped on Friday after forming a hanging man pattern in the previous session, said Rupak De, Senior Technical Analyst at LKP Securities, adding, “While the short-term trend continues to favor the bulls, a mild pullback from the current level looks possible.”

“On the lower side, support is placed at 25,150, below which the trend may weaken. However, if the index manages to stay above 25,150, it could move towards 25,500. A decisive move above 25,500 may then open the road to 26,000,” said De.

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Most active stocks in terms of turnover

Adani Power (Rs 6,031 crore), Swiggy (Rs 3,026 crore), HDFC Bank (Rs 3,022 crore), Redington (Rs 2,460 crore), Bharti Airtel (Rs 2,206 crore), Netweb Technologies (Rs 2,096 crore), and Adani Entertainment (Rs 2,007 crore) were among the most active stocks on the BSE in value terms. Higher activity in a counter in value terms helps identify the stocks with the highest trading turnover of the day.

Most active stocks in volume terms

Vodafone Idea (214.72 crore shares), YES Bank (11.60 crore shares), Adani Power (8.63 crore shares), Suzlon Energy (8.46 crore shares), Redington (8.02 crore shares), IOB (7.85 crore shares), and Swiggy (6.62 crore shares) were among the most actively traded stocks in volume terms on the NSE.

Stocks showing buying interest

Shares of Adani Power, Glenmark Life, Anant Raj, Netweb Technologies, Tanla Platforms, Vodafone Idea, and Ipca Labs were among the stocks that witnessed strong buying interest from market participants.

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52-week highs

Over 162 stocks hit their 52-week highs today, while 60 stocks slipped to their 52-week lows. Notable stocks hitting their 52-week highs included Eternal and Maruti Suzuki.

Stocks seeing selling pressure

Stocks witnessing significant selling pressure were HCL Tech, M&M, ICICI Bank, Titan Company, Nestle India, Kotak Bank, and HUL.

Sentiment meter: Neutral

Market sentiment remained neutral. Out of the 4,316 stocks that traded on the BSE on Friday, 2,111 declined, 2,037 advanced, and 168 remained unchanged.

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