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

The Indian stock market recorded strong gains on Friday, with the Sensex and Nifty rising more than 1% each as in-line earnings from IT heavyweight TCS, positive global cues and other factors boosted investor sentiment. The Sensex jumped 828 points to close at 77,569, while the Nifty 50 advanced over 244 points to end the session at 24,206, extending gains for the second consecutive session.

India VIX, which measures market volatility, fell another 8% to 12.33. The rally added nearly Rs 6 lakh crore to the combined market capitalisation of all BSE-listed companies, taking it to nearly Rs 482 lakh crore.

Here's how analysts read the market pulse


After a brief interim correction, the market appears to be on track for a strong recovery, said Vinod Nair, Head of Research at Geojit Investments. He noted that positive business updates from banks, along with a constructive outlook for the IT sector driven by in-line estimates, a potential rebound in global spending, and AI-related opportunities, have set the stage for an optimistic start to the Q1 earnings season.

“A continuation of better-than-expected Q1 results should help alleviate concerns about future earnings growth. This can further the current uptrend, which is supported by a broad-based rally, with strong participation from sectors such as real estate and metals,” he further said.

Also read: Why stock market rallied on Friday? 5 key factors explained

US stocksWall Street ended higher on Friday, extending recent gains as optimism around AI-related stocks and corporate earnings supported sentiment. The S&P 500 rose 0.42% to 7,575.39, the Dow Jones Industrial Average gained 0.29% to 52,637.01, and the Nasdaq Composite advanced 0.29% to 26,281.61.


European marketsEuropean markets ended mixed on Friday as investors assessed corporate earnings prospects and geopolitical developments. Germany's DAX slipped 0.20% to 25,067.10, while France's CAC 40 edged up 0.15% to 8,338.97. Britain's FTSE 100 gained 0.24% to close at 10,497.29.


Tech viewNifty has moved back above the falling trendline, confirming a revival in the prevailing trend, said Rupak De, Senior Technical Analyst at LKP Securities. He noted that momentum indicators also support the bullish outlook, with the RSI re-entering a bullish crossover on the hourly chart.

“The shift in Put writing towards higher strike prices further reinforces the improving market sentiment. Additionally, India VIX has slipped further below its 200-day moving average, indicating easing fear in the market. Overall, the near-term sentiment remains favourable for the bulls. On the upside, immediate resistance is seen at 24,500, while on the downside, strong support is placed at 24,000,” according to the analyst.

Most active stocks in terms of turnover

Kalyan Jewellers (Rs 5,449 crore), Zensar Tech (Rs 2,350 crore), Dixon Tech (Rs 2,310 crore), HDFC Bank (Rs 1,946 crore), Newgen Software (Rs 1,568 crore), Indian Bank (Rs 1,512 crore) and TCS (Rs 1,402 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 in the day.

Most active stocks in volume terms

Vodafone Idea (Traded shares: 27.33 crore), Kalyan Jewellers (Traded shares: 11.55 crore), Bank of Maharashtra (Traded shares: 6.96 crore), Ola Electric Mobility (Traded shares: 5.15 crore), Zensar Tech (Traded shares: 4.70 crore), Sagility India (Traded shares: 4.46 crore) and Yes Bank (Traded shares: 4.45 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Godrej Industries, J&K Bank, Zensar Tech, Indian Bank, Newgen Software, Blue Jet Healthcare and MRPL 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 the NSE were Godrej Industries, J&K Bank, Oracle, Inventurus Knowledge, Sai Life Science, PNB Housing and Anand Rathi Wealth.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Schneider, Urban Company, Page Industries, Swiggy, Kaynes Technology, Allied Blenders and PhysicsWallah.

Sentiment meter favours bulls

Out of the 3,410 stocks that traded on the NSE on July 10, Friday, 2,339 stocks witnessed advances, 973 saw declines, while 98 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)