Here’s how analysts read the market pulse:-
Mazhar Mohammad of Chartviewindia.in said formations such as Hanging Man are usually visible around short-term turning points. “In case the 16,565 level is breached on a closing basis, a retest of the recent low of 16,376 can’t be ruled out,” he said.
Shrikant Chouhan of Kotak Securities said if the index stays above 16,650, the uptrend may continue up to the 16,825-16,950 levels. “A fall below this level may trigger temporary weakness till 16,375-16,300 levels,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Monday’s action:
US shares nab all-time closing highs
Wall Street rallied on Friday, pushing the S&P and the Nasdaq to record closing highs for the fourth time this week, as US Federal Reserve Chairman Jerome Powell’s remarks at the Jackson Hole Symposium calmed fears over the tapering timetable and sent investors into the weekend in a buying mood. The Dow Jones Industrial Average rose 242.68 points, or 0.69%, to 35,455.8, the S&P 500 gained 39.37 points, or 0.88%, to 4,509.37 and the Nasdaq Composite added 183.69 points, or 1.23%, to 15,129.50.
European shares end higher on dovish Fed
European stocks rose on Friday after Federal Reserve Chair Jerome Powell showed no signs the US central bank will reduce a massive stimulus program, while real estate stocks were led higher by Norway’s Entra after a major peer took a stake in the firm. The pan-European STOXX 600 index closed 0.4% higher, with mining stocks up 1.9%, while real estate stocks added 1.5%.
Tech View: Analysts see market fall ahead
Nifty50 on Friday climbed for the fifth straight session. In the process, it topped the 16,700 mark, but formed a ‘Hanging Man’ candle on both daily and weekly charts. Analysts said the prevailing charts do not instill confidence, even though this was the fourth week in a row when the index made a higher high-low formation. A minor dip cannot be ruled out, analysts said.
F&O: Low volatility helping buy on dips
India VIX fell 1 per cent from 13.54 to 13.40 level. A cooldown in volatility from the recent swing high has given a ‘buy on decline’ stance to the market and now VIX needs to hold below 12 level to get more buying interest in the broader market. Options data suggested a broader trading range between 16,000 and 17,000 levels while an immediate trading range in between 16,500 and 17,000 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of
, Sudarshan Chemicals, Dev, Alok Industries, Shree Renuka Sugars, NBCC (India), HFCL, Central Bank of India, City Union Bank, HUDCO, SBI Life Insurance, DCW, Bank of India, Engineers India, Delta Corp, NRB Bearings, GSS Infotech, PTC…
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