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

The domestic equity market ended little changed in a volatile trading environment tracking mixed cues. Among sectors, oil & gas, metals and auto indices rose the most while consumer durables and telecom indices lost the most.

Here’s how analysts read the market pulse:

Ajit Mishra, VP – Research, Religare Broking Ltd, said the market is trading largely in sync with their global peers and seeing selective participation so far.

“Auto pack tops our list of preferred sectors, followed by select stocks from FMCG, pharma and IT pack. Participants should align their positions accordingly,” he said.

Rupak De, Senior Technical Analyst at

, said the Nifty remained volatile during the day before closing with a green candle formation. “On the lower end, 15,650-15,700 has remained support for the near term. The momentum indicator RSI is in bullish crossover and rising. The trend looks positive as long as it sustains above 15,650. On the higher end, 15,900-16.000 may continue to act as resistance.”

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

US stocks rise as China eases Covid curbs
Wall Street stocks rose early Tuesday on easing China Covid-19 restrictions, as large banks rallied after several announced higher shareholder distributions.

China reduced the length of mandatory quarantine for inbound travelers, in the biggest relaxation of entry restrictions after sticking to a rigid zero-Covid policy throughout the pandemic.

About 20 minutes into trading, the Dow Jones Industrial Average was up 1.2 percent at 31,804.38.

The broad-based S&P 500 gained one percent to 3,938.97, while the tech-rich Nasdaq Composite Index advanced 0.7 percent to 11,605.07.

European markets nudge higher
European stocks were higher on Tuesday as global sentiment remained choppy.

The pan-European STOXX 600 was up 0.7% at a two-week high, boosted by oil & gas and mining stocks as commodity prices benefited from hopes of resurgent demand from top metals consumer China.

Tech View: Small bullish candle
Nifty50 formed a small bullish candle on the daily chart. Analysts said a positive close after a gap-down start was positive. They see the index testing the 16,000 level in the coming days. Support for the index stays at 15,700, they said.

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

, , , Hindalco 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 HDFC AMC and

. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms

(Rs 1,576 crore), M&M (Rs 1,222 crore), ONGC (Rs 799 crore), (Rs 740 crore), (Rs 685 crore), and Titan (Rs 670 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 the highest trading turnovers in the day.

Most active stocks in volume terms
ONGC (Shares traded: 5.4 crore), Hindalco (Shares traded: 1.6 crore), NTPC (Shares traded: 1.4 crore), SBI (Shares traded: 1.3 crore),

(Shares traded: 1.3 crore) and ITC (Shares traded: 1.1 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of

, , M&M and TVS Motor witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Chambal Fertilisers,

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

Sentiment meter favours bulls
Overall, market breadth favoured winners as 1,745 stocks ended in the green, while 1,533 names settled with cuts.

(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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