Ahead of Market: 10 things that will decide D-Street action on Monday
Here's how analysts read the market pulse:
«Nifty has now fallen below the critical 21-day Exponential Moving Average (21EMA). The sentiment appears bearish at this point, with a key support level identified at 19,600.
A breach below 19,600 could potentially initiate a more significant market correction. On the upside, 19,800 is expected to serve as a resistance level,» said Rupak De, Senior Technical analyst at LKP Securities.
Jatin Gedia, Sharekhan by BNP Paribas, said, «Nifty is currently trading at a crucial support zone 19,720 – 19,620 where support parameters in the form of 40 moving average and key Fibonacci retracement level is placed.
The speed of the fall has slowed down as the hourly momentum indicator has a positive crossover which indicates that a pullback is likely before the next leg of the fall resumes. The pullback can be till 19,850 – 19,880 where key hourly moving averages and the gap area formed on September 21 is placed.
In terms of levels, 19,620 – 19,604 is the crucial support zone while 19,850 – 19,880 shall act as an immediate hurdle zone.»
That said, here’s a look at what some key indicators are suggesting for Monday's action:
US market
Wall Street see-sawed on Friday and closed slightly lower after a tumultuous week during which benchmark Treasury yields hit 16-year highs as investors digested the Federal Reserve's hawkish outlook revisions.
The S&P 500 fell 0.23%, while the Nasdaq Composite declined 0.09%. The Dow Jones Industrial Average fell 0.31%.
European shares
European shares closed lower on Friday, logging sharp weekly losses as investors grappled with the prospects of global interest rates remaining elevated for longer.
