Here’s how analysts see the market pulse:
“Nifty has been continuing its uptrend with no signs of trend reversal as of now. The market breadth remains healthy while FIIs have continued to add fresh longs post expiry. However, the RSI readings indicate the possibility of some consolidation or a pullback towards support within the uptrend. Hence, there could be some slow and gradual move in the index with stock specific action in the broader market. The immediate term supports for Nifty are placed around 24620 and 24500 while resistance as per retracement of recent correction is seen around 25065 followed by 25340. Traders are advised to look for stock specific opportunities and continue to trade in the direction of the primary trend,” said Ruchit Jain, Lead Research, 5paisa.com.
Jatin Gedia of Sharekhan, said, “The hourly momentum indicator has triggered a fresh negative crossover, suggesting loss of momentum. Thus, there is a high probability that Nifty is likely to consolidate over the next few trading sessions. On the downside, crucial support is placed at 24650 – 24600 where the key hourly moving averages are placed. On the upside, 25000 is the key psychological hurdle from a short term perspective.”
That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:
US market:
Wall Street stocks mostly rose early Monday, kicking off a week packed with significant events, including a US Federal Reserve decision, jobs data, and earnings reports from major tech companies.About 15 minutes into trading, the Dow Jones Industrial Average was down 0.1% at 40,561.42. The S&P 500 climbed 0.4% to 5,479.85, while the Nasdaq Composite Index surged 0.9% to 17,505.04.
European shares:
European shares started the week on a high note, supported by the global oil sector amid concerns of escalating Middle Eastern conflict and positive earnings updates that boosted market sentiment.
As of 0713 GMT on Monday, the pan-European STOXX 600 index had risen 0.4%, following modest gains last week. Oil and gas stocks led regional sectors with a 1.3% increase, driven by higher crude prices after a rocket attack in the Israeli-occupied Golan Heights.
Shares of Germany’s Merck climbed 3.6% after the company upgraded its forecast, fueled by strong performance in its healthcare and electronics divisions.
Tech View: High Wave type candle
Nifty ended Monday’s session flat before failing to cross the 25,000 milestone by a whisker and form a High Wave type candle on the daily charts.
The near-term uptrend status of Nifty remains intact. The market could probably show some more choppy movement or minor dip in the next 1-2 sessions before surging higher in the near term. Immediate support is at 24600 levels. Overhead resistance to be watched around 25000-25100 levels, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed that the highest OI on the call side was at 24,200 and 25,500 strike prices, while on the put side, it was at 24,500 strike price.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Nile, LTIMindtree, Info Edge, Apollo Hospitals Enterprise, and Divi’s Laboratories 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 Bajaj Steel Industries, JK Cement, IndiGo Paints, Welspun Corp, and Bigbloc Construction 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 4,110 crore), ICICI Bank (Rs 3,480 crore), RVNL (Rs 2,874 crore), Bandhan Bank (Rs 2,852 crore), Mazagon Dock Shipbuilders (Rs 2,358 crore), SBI (Rs 2,332 crore), and Axis Bank (Rs 2,305 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: 50.6 crore), YES Bank (Shares traded: 18.3 crore), PNB (Shares traded: 14.4 crore), Bandhan Bank (Shares traded: 1.3 crore), IRFC (Shares traded: 10.9 crore), Suzlon Energy (Shares traded: 9.8 crore), and HFCL (Shares traded: 6.7 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Kaynes Technology, EID Parry, 360 One Wam, Deepak Fertilisers, City Union Bank, Sumitomo Chemical, and FDC 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 shares hit their 52-week low on Monday.
Sentiment meter favours bulls:
Overall, market breadth favoured bulls as 2,348 stocks ended in the green, while 1,706 names settled in the red.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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