Business & Investment

Ahead of the market: 12 things that determine stock behavior on Monday

New Delhi: After almost complete recovery from the fall on Monday Nifty Formed a bullish candle on Thursday of the truncated week. On a weekly basis, the index closed at about the same level as it opened.

Rohit Singre, senior technical analysts at LKP Securities, said the Nifty50 index has reached the resistance cap of 13,775. “In the future, if the index rises above the above levels, we may see an increase. If not, the index may be profitable and Nifty’s support is in the 13,680-13,600 zone. It will be close. ”

“Almost all major sectors, with the exception of IT, technology and capital goods, participated in this rise. Banking, healthcare and consumer durables showed a huge amount of vibrancy and overall sentiment was in the eastern market and early days. It reflected what was happening in Europe, said Joseph Thomas, Head of Research at MK Wealth Management.

That said, let’s take a look at some key indicators of Monday’s behavior.

Wall Street closed for modest profit
The S & P 500 hit highs at the end of Thursday’s shortened session as investors headed for a long Christmas weekend hoping that imminent stimulus agreements, Brexit deals, and ongoing vaccine deployments would spell a bright day next year. Ended. The Dow Jones Industrial Average rose 0.23%, the S & P 500 rose 0.35%, and the Nasdaq Composite index rose 0.26%.

European stocks close at highs with Brexit trading in sight
Just a week before Britain broke its ties with the European Union, Britain’s Brexit agreement was finally visible, with European stocks rising three times in a row on Thursday. Britain’s Brexit-sensitive banks have boosted the STOXX 600 index across Europe by 0.2%. France’s CAC 40 has closed 0.1%. Stock markets in Germany, Italy and Switzerland have been closed due to Christmas holidays.

Technical View: Weekly charts show potential weaknesses in the future
Nifty made a bullish candle on the daily chart and a long-legged doji on the weekly chart. The latter showed lack of determination about future directions. “Sustainable trading above the 13,780 level has the potential to increase profits to the 13,950-14,100 level. However, failure to trade and maintain above the 13,780 level will trigger profit recording and the index will start at 13,650-. It could drop to the 13,550 level, “said Aditya Agarwara, Senior Technical Analysts at YES Securities.

Please check Candlestick formation In the latest trading session

F & O: Cooling bulls to support VIX
India VIX fell 2.60% from 20.49 to the 19.96 level. Cooling volatility at a higher level provided decent bounce support, and now it must be kept below 19th level to help the Bulls hold the grip on the market. In terms of options, the maximum put open position was 13,000 levels, followed by 13,500 levels, and the maximum call OI was 14,000, followed by 14,500 levels. Call writes were seen at 14,000 levels, then at 14,200 levels, put writes at 13,700 levels, and then at 13,600 levels.

Stocks showing bullish bias
Thursday’s Moving Average Convergent Divergence (MACD) showed bullish trading settings at counters such as Vedanta, Firstsource Solution, NHPC, Reliance Industries, Confidence Petroleum, Cadila Healthcare, NIIT Ltd, Shrenik Ltd and Jubilant Life Sciences. ..

Stocks showing weakness in the future
MACD shows signs of bearish counters at L & T, Titan Company, Godrej Properties, Oberoi Realty, Kansai Nerolac Paint, Burnpur Cement, Gujarat Industries Power Company, Ducon Infratech, MSP Steel & Power, Zodiac Clothing, Palash Securities, Raj Television Network I did. Sakar Healthcare, Centum Electronics, JSW Holdings, etc.

Thursday’s most active stock
Vedanta (Rs 4,373.89 Chlore), Mrs. BectorsFood Specialties (Rs 2,125.54 Chlore), RIL (Rs 1,894.10 Chlore), Bajaj Finance (Rs 1,354.80 Chlore), Tata Motors (Rs 1,296.10 Chlore), Bharti Airtel (Rs 1,079.39 Chlore), HDFC Bank (Rs 1,041.49 Chlore), Axis Bank Rs 942.10 Chlore), Infosys (Rs 903.90 Chlore) and ICICI Bank (Rs 900.56 Chlore) were one of the most active stocks on Thursday at Daral Street.

The most active stock on Thursday’s volume basis
Vodafone Idea (traded stock: 40.90 chlore), Vedanta (traded stock: 27.10 chlore), YES Bank (traded stock: 12.44 chlore), PNB (traded stock: 11.11 chlore), SAIL (traded) Stocks: 8.94 Chlore), Tata Motors (Traded Stocks: 7.38 Chlore), RattanIndia Power (Traded Stocks: 7.37 Chlore), JP Associates (Traded Stocks: 5.70 Chlore), ONGC (Traded Stocks: 7.37 Chlore) 4.63 Chlore) and Bank of Baroda (traded stocks: 3.91 Chlore) were the most traded stocks in the session.

Stocks showing willingness to buy
Indiabulls Ventures (PP), Firstsource Solutions, Whirlpool India, Asahi India Glass and Vedanta hit 52-week highs on Thursday, showing bullish sentiment and strong buying motivation from market participants.

Stocks watching sales pressure
Fairchem Organics, Jump Networks, Ravinder Heights and Anant Raj Global witnessed strong selling pressure during Thursday’s session, hitting a 52-week low and showing bearish sentiment at these counters.

Sentiment meter supports bulls
Overall, the breadth of the market continued to support bullishness. 288 shares of the BSE 500 Index settled the day in green and 207 shares settled the day in red.

Podcast: Risk of investing in a liquidity-fueled bull market >>>

Was the Monday mayhem an overreaction to new strains of coronavirus, or did it indicate that the domestic stock market is a tinderbox looking for sparks? Find the risk of investing in this Bull Run and more in today’s special podcast with independent market expert Rajiv Nagpal.

Ahead of the market: 12 things that determine stock behavior on Monday Ahead of the market: 12 things that determine stock behavior on Monday

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