Ahead of Market: 10 things that will decide stock action on Monday
There is a correction seen in mid- and smallcap stocks and it is expected to continue, with regulators urging disclosure of associated risks to AMCs.
Here's how analysts read the market pulse:
«The overall sentiments remain positive and the index must surpass the 22,400 mark to trigger a new leg of rally. A decisive breakthrough above 22,400 could propel the index towards 22,600. On the downside, support is situated at 22,250-22,200,» said Rupak De, Senior Technical Analyst at LKP Securities.
«In case of any intermediate dip, the 21,900-22,150 zone would cap the downside in the index. Amid all positivity, the price action in the broader indices shows indecisiveness and hence traders should maintain extra caution in midcap and smallcap space and maintain strict stops in the existing positions,» said Ajit Mishra, SVP — Technical Research, Religare Broking.
That said, here’s a look at what some key indicators are suggesting for Saturday's action:
US Market
Wall Street stocks climbed Thursday as investors assessed a key US inflation gauge, with all three major indices up while the tech-focused Nasdaq Composite Index set a new record.
European shares
European shares kicked off the month higher on Friday, buoyed by strength in global equities after favourable U.S. inflation data, while investors hope for a similar downward trend in euro zone inflation for fresh clues on monetary policy easing.
Tech View: Bullish Marubozu candle
«Nifty closed above the crucial resistance zone of 22,250-300 levels on weekly
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