10 things that will decide Dalal Street action on Monday

Indian benchmark equity indices closed higher on Thursday to log their best week in more than four years and erase all their year-to-date losses, led by a rally in heavyweight financial stocks.

The Nifty 50 ended 1.8% higher at 23,851, while the BSE Sensex added 1.96% to end at 78,553. The indices rose 4.5% in the holiday-truncated week, while their major Asian peers underperformed due to the uncertainty over U.S. tariffs and worries about their effect on economic growth.
Here's how analysts the market pulse:
"A strong rally in large-cap stocks was observed on Thursday, primarily driven by financials, amid expectations of improved margins stemming from changes in savings deposit interest rates. Positive sentiment was further supported by a reversal in FII flows, although the sustainability of this trend remains uncertain," said Vinod Nair, Head of Research, Geojit Investments Limited.

"Nonetheless, optimism surrounding the domestic market persists, bolstered by the expectation of a favourable outcome from US-India trade negotiations and a relatively minimal disruption from the US-China trade tensions. Additionally, a moderating inflation trajectory towards more comfortable levels is further enhancing market sentiment," Nair added.

That said, here’s a look at what some key indicators are suggesting for Monday's action:
US market:
The S&P 500 ended higher on Thursday, lifted by Eli Lilly and Apple, as investors weighed progress in U.S. trade negotiations with Japan against concerns about the interest rate outlook.

Traders leaned toward optimism following U.S. President Donald Trump's comments about "big progress" in the bilateral talks after Wednesday's steep selloff.

Trump also told reporters he expects to make a trade deal with China, although he offered no indication of how talks would get underway with the two superpowers at an apparent impasse.

The S&P 500 gained 6.93 points, or 0.13%, to end at 5,282.01 points, while the Nasdaq Composite lost 24.26 points, or 0.15%, to 16,282.90. The Dow Jones Industrial Average fell 528.51 points, or 1.33%, to 39,140.88.
European shares:
European shares closed slightly lower on Thursday after the European Central Bank eased borrowing rates as expected, while investors parsed corporate earnings to gauge the fallout of U.S. President Donald Trump's erratic trade plans.

The pan-European STOXX 600 index ended 0.1% lower, though clocked a more than 4% weekly jump in a holiday-shortened week.

Trading Volumes were relatively lower on Thursday ahead of a four-day weekend on account of Good Friday and Easter Monday.
Tech View:
The index witnessed a spectacular rally, with the Nifty moving above the previous swing high on a closing basis.

"This recent sharp rally has pushed the index above the 100 EMA on the daily chart, suggesting a midterm positive trend. In the short term, we expect the rally to extend further, potentially taking the Nifty towards 24,100. A move above 24,100 could open the path for a rise towards 24,500. On the downside, support is placed at 23,650 and 23,300," said Rupak De, Senior Technical Analyst at LKP Securities.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Emcure Pharmaceuticals, KFin Technologies, International Gemmological Institute, Brainbees Solutions, ICICI Bank, and Aurobindo Pharma among others.

The MACD is known for signaling trend reversals in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa.
Stocks signaling weakness ahead:
The MACD showed bearish signs on the counters of Gillette India, ABSL AMC, and Godawari Power among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms:
HDFC Bank (Rs 3,394 crore), ICICI Bank (Rs 2,435 crore), SBI (Rs 2,129 crore), Bharti Airtel (Rs 2,034 crore), Infosys (Rs 1,997 crore), RIL (Rs 1,941 crore), and Eternal (Rs 1,614 crore) among others were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.
Most active stocks in volume terms:
Vodafone Idea (Shares traded: 48.1 crore), IDFC First Bank (Shares traded: 12 crore), YES Bank (Shares traded: 9.9 crore), Eternal (Shares traded: 7 crore), Tata Steel (Shares traded: 6.2 crore), Wipro (Shares traded: 5.4 crore), and Suzlon Energy (Shares traded: 5.4 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Bharti Hexacom, ICICI Bank, Bharti Airtel, Narayana Hrudayalaya, Bajaj Finserv, and Chambal Fertilisers & Chemicals, and IndiGo among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
No major stocks hit their 52-week lows on Thursday.
Sentiment meter bulls:
Overall, market breadth favoured bulls as 2,396 stocks ended in the green, while 1,563 names settled in the red.

Also Read: Bajaj Finance, IndiGo among 10 largecap stocks where FIIs raised stake in Q4

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)