Ahead of Market: 10 things that will decide stock action on Monday
equity indices experienced a decline on Friday, primarily due to weakness in the financial sector. However, these losses did not overshadow the weekly gains, which were fueled by a post-results rally in key index constituents and reduced concerns regarding the Middle East.
The NSE Nifty 50 was down 0.67% to 22,420, on the day, while the S&P BSE Sensex shed 0.82% to 73,730. Both the indexes snapped a five-day winning streak. However, for the week, the Nifty 50 and Sensex gained about 1.25% and 1%, respectively.
Here's how analysts read the market pulse:
«The Nifty witnessed selling pressure throughout the day and closed weak for the day down ~120 points. On the daily charts, we can observe that the Nifty has faced selling pressure from the resistance zone of 22560 – 22625. Until this zone is not taken out decisively, we can expect the consolidation to continue. On the downside, crucial support is now placed at 22240 – 22200 where support parameters in the form of the 40-day moving average and the 50% Fibonacci retracement level of the rise from 21777 – 22626 is placed,» said Jatin Gedia of Sharekhan.
Rupak De of LKP Securities, said, «Nifty remained under selling pressure throughout the session as the index failed to sustain above the crucial level of 22500. On the daily chart, a dark cloud cover pattern is observed, indicating a potential bearish reversal. Immediate support is situated at 22300, below which the Nifty could extend its losses towards 22000. On the other hand, the level of 22500 might act as a
