Ahead of Market: 10 things that will decide stock action on Monday
Here's how analysts read the market pulse:
«Elevated crude oil prices and concerns about inflation initially cast a shadow over the market. However, this negative sentiment was offset by robust domestic industrial and manufacturing production data, as well as a decline in inflation, which propelled the market to new highs.
The market also received support from a set of positive global cues.
Some of the positive global cues include China's recovery from deflation, cooling core inflation in the US, which supports the idea of a rate pause, and hints from the ECB about a potential pause in rates due to receding inflation. However, mid and small-cap indices faced pressure as profit booking set in, driven by overvaluation concerns and after reaching all-time highs.
Investors are now closely focused on upcoming data releases and central bank meetings scheduled for the next week, including decisions from the U.S.
Fed Reserve, BoE, and BoJ,” Vinod Nair, Head of Research at Geojit Financial Services, said.
“Although the larger texture of the market is bullish, the market is in temporary overbought conditions, and hence we could see some profit booking at higher levels. For short term traders, 20075 and 20000 would act as key support zones while 20300-20375 could act as crucial resistance areas for the bulls,” Amol Athawale, Vice President — Technical Research, Kotak Securities, said.
That said, here’s a look at what some key indicators are suggesting for Monday's action:
US stocks slump
Wall Street indices retreated Friday as recent enthusiasm for tech stocks waned and a historic strike took place in the US auto sector.
But forecast-busting Chinese economic data sent Asian and European stock markets higher.
The tech-heavy Nasdaq ended
