Ahead of Market: 10 things that will decide stock market action on Monday

The Indian market closed in the red on Friday, extending their losing streak to a third consecutive week. The decline was driven by losses in heavyweight financial and automobile stocks, while lingering concerns over U.S. tariffs continued to dampen investor sentiment.

The benchmark BSE Sensex shed 424.90 points or 0.56% to close at 75,311.06, while the broader Nifty 50 index closed at 22,795.90, lower by 117.25 points or 0.51%.

Here’s how analysts read the market pulse:

The domestic market continued to exhibit broad-based weakness, primarily influenced by investor concerns over the hawkish tone of the FOMC minutes, which signalled prolonged higher interest rates that could constrain liquidity in EMs, said Vinod Nair, Head of Research at Geojit Financial Services.

“Although the market has undergone a healthy correction, the uncertainties surrounding the gradual recovery of corporate earnings and ongoing tariff-related risks continue to cast doubt on valuation levels, particularly in the broader market. India is currently lagging behind its Asian peers, as FII outflows remain high, with the “sell India, buy China” strategy continuing to yield returns for the time being,” Nair said.

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US markets

US stocks tumbled on Friday, extending their selloff in response to weak economic reports, new tariff threats, and concerns over softening consumer demand. All three major U.S. indexes moved sharply lower following the data and continued their slide into afternoon trading.The Dow Jones Industrial Average fell 748.63 points, or 1.69%, to 43,428.02, while the S&P 500 lost 104.39 points, or 1.71%, to 6,013.13, and the Nasdaq Composite dropped 438.36 points, or 2.20%, to 19,524.01.

European Markets

European shares closed just shy of record highs on Friday, marking their longest weekly winning streak in nearly a year. The pan-European STOXX 600 index climbed 0.5%, bouncing back from Thursday’s one-week low. Meanwhile, Germany’s DAX slipped slightly as investor caution grew ahead of the country’s upcoming snap elections.

Tech View

The Nifty fell, giving a bearish flag pattern breakdown on the hourly chart, suggesting a rise in bearishness among market participants, said Rupak De, Senior Technical Analyst at LKP Securities.

“Additionally, Nifty has closed at a multi-day low amid increased bearish sentiment. The RSI (14) has entered a bearish crossover. On the lower end, a correction towards 22,500 looks possible in the short term, while on the higher end, 22,850 might continue to remain a strong resistance,” De said.

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Most active stocks in terms of turnover

Godrej Industries (Rs 2,575.05 crore), Mahindra & Mahindra (Rs 2,408.63 crore), BSE (Rs 1,969.60 crore), HDFC Bank (Rs 1,322.08 crore), JSW Energy (Rs 1,277.30 crore), CDSL (Rs 990.75 crore) and Kaynes Technology (Rs 990.09 crore) were among the most active stocks on NSE in value terms. Higher activity in a counter in value terms can help identify the counters with highest trading turnovers in the day.

Most active stocks in volume terms

Vodafone Idea (Traded shares: 28.96 crore), Suzlon Energy (Traded shares: 5.67 crore), YES Bank (Traded shares: 5.63 crore), SAIL (Traded shares: 4.47 crore), Tata Steel (Traded shares: 4.19 crore), NHPC (Traded shares: 4.16 crore) and Zomato (Traded shares: 3.67 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of Godrej Industries, JSW Infrastructure, Vijaya Diagnostic, Archean Chemical, JSW Energy, ITI Ltd and Bikaji Foods International were among the stocks that witnessed strong buying interest from market participants.

52 Week high

Over 60 stocks hit their 52 week highs today while 128 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included UPL, Narayana Hruday and Redington.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Cyient, Mahindra & Mahindra, Asahi India Glass, Anant Raj, Syrma SGS Technology, Radico Khaitan and Piramal Pharma.

Sentiment meter bearish

The market sentiments were bearish. Out of the 4,060 stocks that traded on the BSE on Friday, 2,246 stocks witnessed declines, 1,701 saw advances, while 113 stocks 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)