Nifty continued to consolidate below the 17,500 levels on Friday, August 5, 2022, after RBI increased repo rate in line with market expectations. On the sector front, a mixed trend continued wherein IT, FMCG and financials were the gainers while auto, energy and media settled in the red.

Here's how analysts read the market pulse:

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said that the short-term trend of the Nifty continues to be choppy with high volatility. “As long as Nifty stays below the hurdle of 17,500 levels, there is a possibility of muted movement in the market. A sustainable move above 17,500 could open the next upside targets of 17,800-17,900 levels in the near term. Immediate support is placed at 17,200 levels,” he said.

Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities, said that the confirmation of strength for Nifty is only above 17,557, while the immediate support is seen at 17,121 and below the same, expect Nifty to quickly slip towards 16,750-16,800 zone.

That said, here’s a look at what some key indicators are suggesting for Monday’s action:

US stock indexes closed mostly lower on Friday after a roller-coaster day following a blockbuster report on the US jobs market that offered both good and bad news for Wall Street.

The benchmark S&P 500 ended just 0.2 per cent lower as investors reacted to the report, which showed that US employers unexpectedly added hundreds and thousands more jobs than forecast last month.

Stocks of technology and other high-growth companies once again took the brunt of the selling amid the rising-rate worries. The Nasdaq composite cut its early losses and closed down 63.03 points, or 0.5 per cent, at 12,657.55. The good news on the jobs market helped to limit losses for the Dow Jones Industrial Average, whose stocks tend to move more with expectations for the overall economy. It added 76.65 points, or 0.2 per cent, to close at 32,803.47.

The S&P 500 slipped 6.75 points to end at 4,145.19. Both the S&P 500 and Nasdaq posted a gain for the week.

European shares pop two weeks of gains
European shares fell on Friday after a stronger-than-expected U.S. jobs report ramped up bets of another 75 basis point rate hike by the Federal Reserve next month, while fears of a darkening growth outlook pushed shares towards weekly losses.

The pan-European STOXX 600 was down 0.8 per cent, extending losses from earlier in the day after U.S. nonfarm payrolls were shown to increase by 528,000 jobs last month, the largest gain since February.

The benchmark has lost 0.6 per cent this week, snapping two weeks in positive territory, on worries over four economic data from the region, rising geopolitical tensions and fears that higher interest rates could tip the economy into a recession.

Tech View
Nifty50 on Friday ended on a flattish note for the second straight session. The index formed an indecisive candle on the daily chart. On the weekly scale, the index formed a small bullish candle. Analysts said the index might be losing momentum after recent gains. They see 17,500 as an immediate resistance level. The level of 17,150 may act as strong support, they said.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of FDC Ltd, Bayer Cropscience NSE 3.69 %, PI Industries NSE 3.34 %, Easy Trip Planners NSE 2.97 %, Tata Tele and Mahindra Holiday

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.

Most active stocks in volume terms
ONGC (Shares traded: 6.6 crore), Tata Steel (Shares traded: 5.4 crore), NTPC (Shares traded: 3.4 crore), Coal India (Shares traded: 3.2 crore), SBI (Shares traded: 2.1 crore) and ICICI Bank (Shares traded: 1.6 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Solar Industries NSE 5.21 %,Shares of Solar Industries NSE 5.21 %, Tube Investments NSE 3.93 %, Tata Elxsi, Navin Fluorine NSE 3.59 %, WABCO India NSE 2.16 %, Varun Beverages NSE 2.14 % and Phoenix Mills NSE 1.49 % witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure
Shares of Alembic Pharma NSE -4.31 % witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured losers as 1,808 stocks ended in the green, while 1,543 names settled with cuts.