Rohit Singre of LKP Securities said, the Nifty has formed a good base near 13,500-13,440 zone.
“We may see bullish momentum to continue towards immediate hurdle zone of 13,600-13,650 zone. Below 13,400 zone we may see some immediate trend reversal. Support for Nifty Bank is coming near 30,500-30,200 zone and resistance is coming near 31,000-31,200 zone,” he said.
Vinod Nair of Geojit Financial Services said, the domestic market is expected to gain its momentum from the global market, due to an eventful week ahead with Britain and the EU moving for a no-deal Brexit and the US markets awaiting the outcome of the Fed meeting.
Gaurav Ratnaparkhi of Sharekhan by BNP Paribas said, though the upside momentum has weakened in the last few sessions, the bulls are managing to hold on the support parameters.
“Hence, as long as the Nifty trades above the support zone of 13,450-13,400, it is expected to stretch towards 13,700,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Tuesday’s action:
US stocks cheered by vaccine roll-out
Wall Street’s main indexes rose on Monday as travel stocks surged on the launch of a nationwide COVID-19 vaccine campaign, while Alexion Pharmaceuticals jumped on a $39 billion buyout offer from AstraZeneca in one of the year’s biggest deals. The Dow Jones Industrial Average was up 242.50 points, or 0.81%, at 30,288.87, the S&P 500 was up 31.31 points, or 0.85%, at 3,694.77, and the Nasdaq Composite was up 126.03 points, or 1.02%, at 12,503.91.
European shares cheer Brexit trade talks extension
European shares rose on Monday, as a decision to extend trade talks between Britain and the European Union kept hopes of an eventual deal alive, but gains in London’s blue-chips were limited by a higher pound and a 6.2% drop in AstraZeneca. With banks in the lead, Europe’s benchmark STOXX 600 index rose 0.7% after breaking a five-week winning streak to end 1% lower last week.
Tech View: Third Doji in a row on Nifty is bad omen
Nifty50 on Monday formed a ‘Doji’ candle on the daily chart, the third in a row. The formation of such an indecisive candle at highs suggests the momentum is weakening, even as the buying momentum continues at lows. A close observation of the last 14 sessions suggests Nifty50 has chalked out an ascending channel with a narrow trading range, and the bulls have in the past five sessions worked hard, if not struggled, to get past the upper boundary of the said channel, said Mazhar Mohammad of Chartviewindia.in.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com
F&O: Any decline in market could trigger buying
India VIX rose 3.26% from 18.79 to 19.40 levels. Overall lower volatility suggests the bulls are holding a tight grip on the market and any small decline could trigger buying. On the options front, maximum Put open interest stood at 13,000 level followed by 13,200, while maximum Call OI is at 13,000 followed by 13,500 levels. Marginal Call writing was seen at strike price 13,600 and then 13,900, while there was Put writing at 13,200 and then 13,500 levels. Options data suggested an immediate trading range between 13,200 and 13,750 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Monday showed bullish trade setup on the counters of Munjal Auto, Fortis Healthcare, Cyient, Va Tech Wabag, Borosil Renewables, ICICI Lombard, Dolat Investment, Intellect Design, Inox Wind, Gayatri Projects, Jindal Worldwide, Premier Polyfilm, EIH Associated, Ador Welding, SKIL Infrastructure, Ramco Industries, Vishnu Chemicals, Gillette India, JSW Holdings, Honeywell Automation and Salona Cotspin among others.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Adani Power, IDFC First Bank, Hindalco, Indiabulls Housing, TV18 Broadcast, Equitas Holdings, Jammu & Kashmir Bank, Aditya Birla Capital, Aurobindo Pharma, InterGlobe Aviation, Castrol India, Time Technoplast, Indian Energy Exchange, Ujjivan SmallFinance, Jai Corp, Infibeam Avenues, AIA Engineering, Venky’s (India), ABB India, KEI Industries, Career Point, Thermax, Nirvikara Paper Mill, The Hi-Tech Gears and Naga Dhunseri Group among others.
Monday’s most active stocks
Burger King India (Rs 2,285.77 crore), RIL (Rs 1,595.26 crore), Cipla (Rs 1,555.19 crore), IRCTC (Rs 1,393.18 crore), ICICI Bank (Rs 1,380.26 crore), Larsen & Toubro (Rs 1,199.58 crore), HDFC Bank (Rs 1,184.91 crore), Tata Steel (Rs 1,119.19 crore), Axis Bank (Rs 900.27 crore) and SBI (Rs 877.43 crore) were among the most active stocks on Dalal Street on Monday in value terms.
Monday’s most active stocks in volume terms
Vodafone Idea (shares traded: 27.50 crore), RattanIndia Power (shares traded: 20.72 crore), Burger King India (shares traded: 18.68 crore), YES Bank (shares traded: 13.66 crore), JP Power (shares traded: 11.62 crore), ONGC (shares traded: 7.50 crore), PNB (shares traded: 5.20 crore), SAIL (shares traded: 5.05 crore), Federal Bank (shares traded: 4.88 crore) and BHEL (shares traded: 4.71 crore) were among the most traded stocks in the session.
Stocks seeing buying interest
Cyient, Ruchi Soya Industries, Responsive Industries, Tata Steel (PP) and Elgi Equipments witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Monday signalling bullish sentiment.
Stocks seeing selling pressure
D. P. Abhushan and Vishal Fabrics witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls
Overall, market breadth remained in favour of bulls. As many as 316 stocks on the BSE 500 index settled the day in green, while 183 settled the day in red.
Podcast: How much upside is left in Burger King shares after the robust listing? >>>
Led by gains in ICICI Bank, L&T and Kotak Mahindra Bank, Sensex gained over 150 points to end at a fresh all-time high on Monday. Amid persistent foreign fund inflows and a largely positive trend in global markets, Sensex settled at 46,253 while Nifty closed at a record 13,558.15. We spoke to G Chokkalingam, Founder, Equinomics Research and Advisory, to understand what lies ahead for the market and about the listing gains of Burger King IPO.
