Ahead of Market: 10 things that will decide stock action on Monday
equity indices closed over 1.5% higher on Friday, as strong U.S. economic data eased recession fears in the world's largest economy.
The NSE Nifty 50 index ended 1.65% higher at 24,541.15 and posted 0.7% weekly gain, while the S&P BSE Sensex added 1.68% to 80,436.84 and was 0.9% higher for the week.
Here's how analysts the market pulse:
«On daily charts, we can observe that Nifty has held on to the 40-day average (24150) and has witnessed a sharp pullback. The index is now heading towards the 24626 – 24650 zone where the 61.82% Fibonacci retracement level and the gap area formed on the 5th Aug is placed. Considering the sharp pullback, we change the short-term trend to sideways from negative and the range of consolidation is likely to be 2400 – 24200,» Jatin Gedia of Sharekhan.
Rupak De, Senior Technical Analyst of LKP Securities, said, «Nifty rallied above 24500 after days of consolidating within a 400-500 point range. In the near term, Nifty may continue consolidating within the 24300-24550 range. Only a decisive move above 24550 could trigger a directional up move in the index. A buy-on-dips strategy may be more effective unless Nifty decisively falls below 24300.»
That said, here’s a look at what some key indicators are suggesting for Monday's action:
US market:
U.S. stocks ended higher on Friday, extending their biggest weekly percentage gains of the year as worries of an economic downturn eased and investors focused on the Jackson Hole Economic Symposium next week.
The S&P 500 and the Nasdaq notched
