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

The Indian stock market overall gained around 3% during the last week, recovering all early losses to sharply rise despite volatility in overall global stock markets. Analysts now highlight that the market’s direction during the upcoming week will be determined by the RBI MPC meet outcome, oil prices and other key factors.

Sensex and Nifty extended gains for a third consecutive session on Friday, with the benchmark indices ending higher amid overall bullish global market sentiment. Sensex rose 166.5 points to close at 78,095, while the Nifty 50 gained over 66 points to end the session at 24,384. Broader markets also remained in the green, with the Nifty Midcap 100 and Nifty Smallcap 100 indices rising more than 0.4%.

Here's how analysts read the market pulse


The market’s positive momentum continued, although some profit booking emerged at higher levels as caution persisted amid elevated yields and potential rate-hike concerns, said Vinod Nair, Head of Research at Geojit Investments. He noted that the sustainability of the recovery will depend largely on the ongoing earnings season, which is currently outperforming forecasts, and on a reduction in global risks.

“The domestic IT index witnessed profit booking following its recent rally. Meanwhile, a rebound in global chipmakers, supported by strong earnings and spending plans, eased concerns over AI valuations, putting pressure on domestic technology stocks. As the earnings season gathers pace, markets will seek confirmation that the recent improvement in earnings is broad-based rather than concentrated in a few sectors,” he further said.

US stocks

Wall Street ended higher on Friday, with the major indexes posting weekly gains as strong corporate earnings, led by Amazon, offset concerns over rising Treasury yields and weakness in some technology stocks. The S&P 500 rose 0.70% to 7,489.72, the Dow Jones Industrial Average gained 0.53% to 52,485.03, and the Nasdaq Composite climbed 1.00% to 25,373.85.

European markets


European markets ended mixed on Friday as investors assessed corporate earnings and monitored geopolitical developments. Germany's DAX rose 0.07% to 25,629.24, while France's CAC 40 edged up 0.28% to 8,509.64. Britain's FTSE 100 fell 0.27% to close at 10,868.05.

Tech view

The Nifty remained mostly positive during the day, maintaining strength above the critical moving averages on the hourly timeframe, confirming a near-term positive trend, said Rupak De, Senior Technical Analyst at LKP Securities. He however noted that the momentum appears to be lacking as traders remain cautious due to volatile crude oil prices and the uncertain situation in the Middle East.

“Despite this, the overall trend remains positive, as the index has been sustaining above the critical 50 EMA on the daily chart. On the downside, immediate support for short-term traders is placed at 24,200. On the higher end, resistance is seen at 24,500,” the analyst said.

Most active stocks in terms of turnover

Bajaj Finance (Rs 4,586 crore), M&M (Rs 2,079 crore), Netweb Technologies (Rs 2,033 crore), HDFC Bank (Rs 1,913 crore), Infosys (Rs 1,621 crore), Kalyan Jewellers (Rs 1,478 crore) and Thermax (Rs 1,475 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 the highest trading turnovers on the day.

Most active stocks in volume terms

Vodafone Idea (Traded shares: 38.73 crore), JP Power (Traded shares: 25.79 crore), Zee Entertainment Enterprises (Traded shares: 6.17 crore), Suzlon Energy (Traded shares: 5.67 crore), IFCI (Traded shares: 5.04 crore), Ashok Leyland (Traded shares: 4.75 crore) and Swiggy India (Traded shares: 4.68 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Bajaj Finance, Hyundai Motor India, Netweb Technologies, Balkrishna Industries, Concord Biotech, Bajaj Finserv and Schloss Bangalore were among the stocks that witnessed strong buying interest from market participants.

52-week high

Among the ones which hit their 52-week highs on NSE included Bajaj Finance, Torrent Pharma, Ramkrishna Forgings, Divis Labs, Aditya Birla Capital, Emcure Pharmaceuticals and TVS Motor.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Aptus Value Housing, Sagility India, Sapphire Foods, Allied Blenders, City Union Bank, Mankind Pharma and OneSource Speciality.

Sentiment meter favours bulls

Out of the 3,435 stocks that traded on the NSE on July 31, Friday, 2,067 stocks advanced, while 1,252 saw declines, and 116 stocks remained unchanged.

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