Market Ahead: Ahead of Market: 12 things that will decide the stock market action on Tuesday
Here’s how analysts read the pulse of the market:
Angel One’s Ruchit Jain said Nifty50 has seen some consolidation and is trading around the “20 EMA” on the hourly charts which would offer immediate support on Tuesday. “You have to trade with proper risk management and look for equity-specific opportunities for better trade setups,” Jain said.
Mazhar Mohammad of Chartviewindia.in suggested that the Nifty50 index may experience selling pressure with a target of around 17,646-17,610. “Nifty50 needs to stay above the spread area to maintain a positive bias , as the breakout of 17,600 on a close basis can be seen as a first sign of weakness, ”he said.
That said, here’s a look at what some of the key indicators suggest for Tuesday’s action:
Tech mega-caps bring down the Nasdaq
The Nasdaq index fell more than 1% on Monday as investors traded tech heavyweights for stocks linked to economic growth amid growing confidence in a recovery. At 9.44 a.m. ET, the S&P 500 was down 13.36 points, or 0.30%, to 4,442.12, and the Nasdaq Composite was down 162.58 points, or 1.08%, to 14,885.12.
European equities end down
The European STOXX 600 index ended lower on Monday as declines in tech stocks offset gains in banking and energy, while German stocks hit 10-day highs as federal election results shot up. reduces the chances of a left coalition forming a government. The pan-European STOXX 600 index fell 0.2%.
Technical view: assistance seen at 17,800
The Nifty50 index ended the day on a moderate note, raising fears of some market weakness. Analysts said levels of 17,800 to 17,750 would provide immediate support for the index as they see a range of 17,950 to 18,000 act as short-term resistance.
F&O: the VIX peak to worry the bulls
While the benchmarks have not provided much action, the spike in volatility in the India VIX gauge should worry investors. The volatility index closed up nearly 7% above the 18 point mark on Monday. The continued selling of the call option at the strike price of 18,000 suggested that the market sees no room for further upside without new triggers.
Stocks showing a bullish bias
The Moving Average Convergence Divergence (MACD) momentum indicator showed a bullish trade pattern on the counters of IDBI Bank, Alok Industries, Equitas Small Finance Bank, HDFC Bank, Sterling and Wilson and Indo Count Industries. The MACD is known to signal trend reversals in the securities or indices being traded. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may experience an upward movement and vice versa.
Stocks signal weakness ahead
The MACD showed bearish signs on the counters of UCO Bank, Bharat Electronics, Karnataka Bank, Shriram Transport Finance, Metropolis Healthcare, Network18, Action Construction, Minda Corporation, Dishman Carbogen, Dhanlaxmi Bank, United Breweries, Syngene International and Voltas. The bearish cross on the MACD on these counters indicated that they have just started their downward journey.
Most active stocks in terms of value
Maruti Suzuki (Rs 1926 crore), Tata Motors (Rs 1857 crore), RIL (Rs 1781 crore), Zee Entertainment (Rs 1517 crore), IRCTC (Rs 1408 crore), DLF (Rs 1373 crore), HDFC Bank (Rs 1335 crore), Tata Steel (Rs 1,104 crore), HCL Tech (Rs 1,005 crore) and Godrej Properties (Rs 925 crore) were among the most active stocks on Dalal Street in terms of value. Higher activity on a meter in terms of value can help identify meters with the highest turnover during the day.
Most active stocks in terms of volume
Vodafone Idea (Shares traded: 34 crore), Tata Motors (Shares traded: 5.6 crore), YES Bank (Shares traded: 5.5 crore), Zee Entertainment (Shares traded: 4.8 crore), Indian Hotels (Shares traded: 4.2 crore), GMR Infra (Shares traded: 3.7 crore), ONGC (Shares traded: 3.4 crore), NALCO (Shares traded: 3.4 crore), GNP (Shares traded: 3.4 crore) and DLF (Shares traded: 3.3 crore) were among the most traded. actions in the session.
Stocks seeing buying interest
EIH, Sterling Wilson Solar, Prestige Estates, GNFC and Tata Motors DVR witnessed strong buying interest from market participants as they increased their new 52 week highs, signaling bullish sentiment.
Stocks see the pressure to sell
CarTrade Tech and Aptus Value Housing Finance saw strong selling pressure and hit their 52 week low, signaling bearish sentiment on these meters.
The sentiment counter favors bears
Overall, the breadth of the market has remained in favor of bears. No less than 217 shares of the BSE500 index settled the day in the green, while 283 settled the day in the red.
Podcast: What made auto stocks bounce back today?
BSE Sensex fell around 334 points from the day’s high to close at 60,078, up 29 points. Nifty 50 closed the day at 17,855. The declines outnumber the advances, with the midcap and smallcap indices closing slightly lower. Only 13 Sensex stocks finished higher, but thanks to the purchase of Reliance Industries and some banking and auto stocks, the index stabilized higher for the third consecutive session. Maruti Suzuki grew 6 percent while M&M and Bajaj Auto rose 4 percent. What made auto stocks bounce back today? What’s the prospect?