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

The Indian stock market ended lower on Friday, curbing its weekly gains, as broad sectoral losses and investor concerns over escalating geopolitical tensions following a deadly militant attack in Kashmir weighed on market sentiment.

The benchmark BSE Sensex lost 588.90 points or 0.74% to close at 79,212.53, while the broader Nifty 50 index closed at 24,039.35, lower by 207.35 points or 0.86%.

Here’s how analysts read the market pulse:

Investor sentiment turned cautious amid escalating tensions along the Indo-Pak border, said Vinod Nair, Head of Research at Geojit Investments, adding that the mid-cap and small-cap stocks bore the brunt of the sell-off, driven by their elevated valuations and growing concerns over potential earnings downgrades following a muted start to the earnings season.

“The risk of the correction continuing in the near term is evident as investors adopt a wait-and-watch stance. However, it is a good time for persistent investors to dip into it, given the resilient nature of the Indian stock market during external & geopolitical volatility,” said Nair.

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US markets

Wall Street stocks were mixed on Friday but remained poised for weekly gains as investors analyzed a slew of earnings reports and signs of easing tensions in the U.S.-China trade dispute.The Dow Jones Industrial Average dropped 106.25 points, or 0.27%, to 39,984.97, while the S&P 500 rose 19.87 points, or 0.36%, to 5,504.47. The Nasdaq Composite gained 143.19 points, or 0.83%, finishing at 17,309.24.

European Markets

European stocks reached a three-week high on Friday, marking their second consecutive weekly gain, as optimism surrounding a potential de-escalation in the U.S.-China trade war spurred risk appetite.

The pan-European STOXX 600 index finished 0.3% higher, ending the week with a 2.7% gain.

Tech View

The Nifty has slipped after a consolidation on the daily chart, indicating a rise in bearish sentiment, said Rupak De, Senior Technical Analyst at LKP Securities adding that the index has fallen below its 200-DMA, signaling a potential re-entry into a bearish trend.

“Investor sentiment remains weak, with a clear risk-off approach ahead of the weekend, amid rising tensions between India and Pakistan. In the short term, sentiment is likely to continue driving the market trend, with the possibility of the index heading lower. Support on the lower end, is placed at 23,800/23,515,” said De.

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Most active stocks in terms of turnover

BSE (Rs 2,719 crore), Waaree Energies (Rs 2,493 crore), Axis Bank (Rs 2,004 crore), Reliance Industries Ltd (Rs 1,881 crore), HDFC Bank (Rs 1,768 crore), SBI Life (Rs 1,750 crore) and ICICI Bank (Rs 1,640 crore) were among the most active stocks on BSE 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: 187.36 crore), YES Bank (Traded shares: 10.93 crore), Suzlon Energy (Traded shares: 10.43 crore), Reliance Power (Traded shares: 7.67 crore), Indian Energy Exchange (Traded shares: 6.34 crore), NMDC (Traded shares: 5.36 crore) and Ola Electric Mobility (Traded shares: 5.06 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of SBI Life, Dr Lal Pathlabs, Atul, Mphasis, Navin Fluorine, Jubilant Ingrevia and Nuvama Wealth Management were among the stocks that witnessed strong buying interest from market participants.

52 Week high

Over 58 stocks hit their 52 week highs today while 40 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included UltraTech Cement.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Motilal Oswal, Angel One, Reliance Power, DB Realty, GRSE, SBI Card and ACC.

Sentiment meter bearish

The market sentiments were bearish. Out of the 4,084 stocks that traded on the BSE on Friday, 3,285 stocks witnessed declines, 689 saw advances, while 110 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)