Ahead of Market: 10 things that will decide stock action on Monday
Sensex and Nifty started the Hindu accounting year Samvat 2080 on a positive note by ending 0.5% stronger. Sensex ended 355 points higher while Nifty ended comfortably above the 19,500-zone.
Buying action was more visible in the broader market as the smallcap index rallied over 1% with Welspun Corp, Engineers India and Swan Energy rallying 7-9% each.
That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:
US market
The dollar eased and global equities rebounded on Friday as Wall Street rallied on doubts that interest rates will go higher even after Federal Reserve Chair Jerome Powell cautioned that tighter monetary policy might be needed to tame inflation.
The Dow Jones Industrial Average rose 1.15%, the S&P 500 gained 1.56% and the Nasdaq Composite added 2.05%, its biggest percentage jump since May.
For the week, the Dow rose 0.7%, the S&P 500 gained 1.3% and the Nasdaq advanced 2.4%.
European shares
European shares fell on Friday, hurt by higher bond yields, as hawkish comments from the US Federal Reserve Chair doused investor optimism that interest rates have peaked, while dour results from Diageo and Richemont also weighed. The pan-European STOXX 600 closed 1.0% lower, easing from a three-week high hit on Thursday, and ending the week marginally lower.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Godrej Industries, KSB Ltd, Sun TV, Welspun India, HCL Tech, Tata Motors, NTPC, among others.
The MACD is known for signaling trend reversals in traded securities or indices.
