Market Outlook: What’s Ahead for Dalal Street This Monday?

Market Overview

The domestic benchmark equity indices, Sensex and Nifty50, closed marginally lower on Friday, pressured by FMCG and energy stocks. Nevertheless, recording their best weekly performance since late June, the indexes are in a key position ahead of a likely rate cut by the Federal Reserve.

Technical Analysis of Nifty50

On the technical front, Rupak De of LKP Securities remarked that the index remained range-bound and faced resistance at the rising trendline. The RSI shows a bearish crossover, indicating a potential reversal. Support levels stand at 25,150-25,200, while resistance is at 25,460.

Influence of Wall Street

Wall Street stocks showed upward momentum on Friday, bolstering weekly gains. Recent economic data has heightened expectations for a more aggressive interest rate cut from the Fed. The S&P 500 gained 0.5% for the day and saw over a 4% uptick for the week.

European Market Performance

• TRading in European shares ended on a positive note, led by technology and real estate stocks.
• The STOXX 600 index gained 0.7%.
• Germany's stocks outperformed with a near 1% rise.

Nifty Technical View Going Forward

Nifty's recent movement suggests a consolidation phase may precede a new upward trend. Nagaraj Shetti from HDFC Securities confirmed that the short-term trend appears positive. Furthermore, a sustainable move above 25,400 could lead Nifty towards higher targets around 25,800.

MACD Insights

The momentum indicator MACD indicated bullish signals for several stocks, including Nuvama Wealth Management and Kaynes Technology, suggesting potential upward trends. Conversely, bearish signals for stocks like Ajanta Pharma indicate possible downturns ahead.

Market Sentiment and Future Considerations

Market participants exhibited strong buying interest in stocks reaching new 52-week highs. The sentiment meter shows a favorable bias for bulls, as 2,454 stocks ended positive compared to 1,517 stocks that closed in the red.