Ahead of Market: 10 things that will decide D-St action on Tuesday

New Delhi: Amid mixed cues on the earnings front and tepid global markets, Nifty slipped into weakness on Monday and closed the day lower by 88 points. Most sectoral indices ended lower, in line with the benchmark, wherein auto, oil & gas and telecom were the top losers.

Here’s how analysts read the market pulse:

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the short term uptrend of Nifty seems to have reversed down from near the important resistance of 16,800 levels. “The overall chart pattern indicates further weakness down to 16,350-16,300 levels in the next few sessions. Intraday resistance to be watched at 16,700 levels.”

Prashanth Tapse, Vice President (Research), Mehta Equities, said the bulls can do a victory lap only if Nifty closes above its 200-DMA at 17,045. “On the downside, the line in the sand is at Nifty’s support at 16,551 mark.”

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

US stocks waver ahead of Earnings, Fed meet
The Dow rose on Monday as investors braced for a Federal Reserve meeting during the week and earnings from some of the biggest companies to gauge the impact of a strong dollar and soaring inflation, while the Nasdaq dipped on declines in Microsoft.

Apple Inc, Amazon.com Inc, Alphabet Inc , Microsoft Corp and Meta Platforms Inc , which together account for $8.9 trillion in market capitalization, or a quarter of the benchmark index’s weightage, are scheduled to post earnings this week.

At 10:12 a.m. ET, the Dow Jones Industrial Average was up 123.98 points, or 0.39%, at 32,023.27. The S&P 500 was up 5.49 points, or 0.14%, at 3,967.12, while the Nasdaq Composite was down 26.93 points, or 0.23%, at 11,807.19.

European markets close mixed
European stocks moved in mixed directions Monday as markets began a busy week, with the US Federal Reserve poised to lift interest rates again and some of the world’s biggest companies scheduled to publish their latest earnings reports.

The pan-European Stoxx 600 closed up by just 0.09%, having initially dropped more than 0.4% in early trade. The benchmark FTSE 100 index climbed 0.4%, reversing early losses, while the domestically focussed mid-cap index slipped 0.1%.

Tech View: Nifty forms bearish candle
Nifty50 formed a bearish candle on the daily chart and made a lower high-low formation. The negative candle had a minor upper and lower shadow.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of

, , , HCL Tech, and .

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 signalling weakness ahead
The MACD showed bearish signs on the counters of

, Syngene, , , Network18 Media and PVR. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms
RIL (Rs 2,585 crore), ICICI Bank (Rs 1,694 crore), Infosys (Rs 1,179 crore), Tata Steel (Rs 951 crore), HDFC Bank (Rs 707 crore), and

(Rs 584 crore) 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
ONGC (Shares traded: 2.2 crore), ICICI Bank (Shares traded: 2.1 crore),

(Shares traded: 1.2 crore), RIL (Shares traded: 1.1 crore), ITC (Shares traded: 1.1 crore) and SBI (Shares traded: 1 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest

Shares of

, , , BEL, , EID Parry and ITC witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure
Shares of Zomato and

witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bears
Overall, market breadth favoured losers as 1,472 stocks ended in the green, while 1,952 names settled with cuts.

(With inputs from agencies)

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

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