Ahead of Market: 10 things that will decide stock action on Monday
equity indices hit all-time highs on Friday, and logged weekly gains, led by gains in IT stocks after market leaders TCS and Infosys posted quarterly reports that alleviated concerns about weak demand.
On the day, the NSE Nifty 50 added 1.14% to close at a record 21,894 points, while the S&P BSE Sensex climbed 1.18% to 72,568. They gained about 0.8% for the week.
Meanwhile, the IT index jumped 5.14%, logging its best session since Oct. 8, 2020, to hit a 21-month high.
Here's how analysts read the market pulse:
«Nifty exhibited significant strength, securing a notable breakout on the daily chart as it surpassed the key resistance level of 21,800. This bullish move positions the index for potential short-term targets of 22,000 and 22,200. Traders are advised to consider buying opportunities on any dips toward the support level,» said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, «Nifty on the weekly chart formed a reasonable bull candle with a long lower shadow. The bearish doji pattern implication of last week has been nullified this week, as Nifty closed above the high of last week at 21834 levels. The next upside level to be watched around 22200. Immediate support is at 21750.»
That said, here’s a look at what some key indicators are suggesting for Monday's action:
US market:
US stocks closed barely changed on Friday, after wavering between modest gains and losses, as mixed bank earnings offset cooler-than-expected inflation news that buoyed hopes for interest-rate cuts from the Federal Reserve.
For the week, the Dow gained 0.34%, the S&P 500 rose 1.84% and the Nasdaq climbed 3.09%. The gains for the S&P were
