Rohit Singre, Senior Technical Analyst at LKP Securities said, “Nifty and Nifty Bank indices have witnessed a fresh breakout in today’s session, which hints that the overall structure is still buying on the dip and we may see more upside in the near term if it manages to hold above 14,250 in Nifty and 37,000 in the Nifty Bank, which is immediate and strong support on the downside.”
“Optimistic global sentiment and improving corporate earnings are leading an uptrend in the market dictated by banking and realty stocks. Mild consolidation is noticed in pharma and IT, but midcaps continue to beat the broad market,” said Vinod Nair, Head of Research at
.
That said, here’s a look at what some of the key indicators are suggesting for Tuesday’s action:
US market closed for President’s Day
Global shares rose for the 11th day in a row to reach a fresh peak on optimism about the rollout of COVID-19 vaccines and new fiscal aid from Washington. However, the US stock markets were closed on Monday for the Presidents Day holiday. E-mini futures for the S&P 500 were trading higher, up 0.4%
European shares rally as mining stocks gain
European shares scaled one-year highs on Monday and mining stocks tracked a jump in copper prices as bets of more US stimulus fuelled optimism around a faster global economic recovery this year. The pan-European STOXX 600 rose 1.30 per cent, with Rio Tinto, BHP Group and Anglo American bolstering the index. Banks and energy stocks were also among the biggest gainers.
Tech View: Nifty sees upside breakout above 15,255
Nifty50 on Monday capitalised on a gap-up start and ended above the 15,300 mark for the first time. Analysts said the opening upside gap remained unfilled and the index has seen an upside breakout above the 15,255 level. They are largely positive on the index now, but feel profit booking around the 15,400-475 levels is a possibility. Monday’s daily candle has negated the minor bearish implication created by Friday’s Doji or High Wave candle pattern.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com
F&O: Options show wider trading range
India VIX slipped 2.57% to 21.47. Now, VIX needs to cool down and hold below 20 level to continue the ongoing momentum with a higher market base. Put writing was seen at strike prices 15,000 and 15,300 while there was Call writing at 15,300 and 15,800 levels. Options data suggested a wider trading range between 14,800 and 15,700 levels, while the immediate range is seen between 15,000 and 15,500 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Monday showed bullish trade setup on the counters of L&T Finance Holdings, LIC Housing Finance, RBL Bank, Jaiprakash Power Ventures, Lemon Tree Hotels, DCB Bank, Orient Cement, Greaves Cotton, GIC Housing Finance, NIIT, KEI Industries, Finolex Cables, Cochin Shipyard, Tanla Platforms, Arvind SmartSpaces, IFGL Refractories, Heidelberg Cement, Navneet Education, Nucleus Software, TCI, Future Supply Chain, Pfizer, Emkay Global Financial, Rane (Madras), Swaraj Engines and Intrasoft Technologies.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of ITC, NBCC (India), Amara Raja Batteries, Bharat Forge, Titan, Indian Overseas Bank, Indraprastha Gas, Castrol India, Praj Industries, Time Technoplast, Oil India, Sanghi Industries, Polycab India, Nava Bharat Ventures, Raymond, Ashapura Minechem, Godrej Industries, DCM Shriram, Aegis Logistics, Atul Auto, Elgi Equipments, Prabhat Dairy, Gujarat Apollo Industries, Mahindra Holidays, TVS Srichakra, Punjab Chemicals and and Kalyani Investment.
Monday’s most active stocks
Tata Motors (Rs 2595.04 crore), Motherson Sumi (Rs 2306.97 crore), SBI (Rs 2281.74 crore), Bajaj Finance (Rs 1816.23 crore), ICICI Bank (Rs 1807.23 crore), Adani Enterprises (Rs 1630.72 crore), Cholamandalam Investment and Finance (Rs 1626.92 crore), Axis Bank (Rs 1604.65 crore), RIL (Rs 1488.95 crore) and Apollo Hospital (Rs 1328.10 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: 33.37 crore), PNB (Shares traded: 12.79 crore), Motherson Sumi (Shares traded: 10.86 crore), Tata Motors (Shares traded: 7.87 crore), YES Bank (Shares traded: 6.41 crore), IDFC First Bank (Shares traded: 6.35 crore), SBI (Shares traded: 5.66 crore), Indian Railway Finance Corporation (Shares traded: 4.56 crore), L&T Finance Holding (Shares traded: 4.01 crore) and Bank of Baroda (Shares traded: 3.97 crore) were among the most traded stocks in the session.
Stocks showing buying interest
MahindraCIE, Cholamandalam Investment and Finance, Apollo Hospital, Route Mobile and Adani Gas witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Monday signalling bullish sentiment.
Stocks seeing selling pressure
Home First Finance Company, Novartis India and Sanwaria Consumer witnessed strong selling pressure in Monday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter stays neutral
Overall, market breadth remained mixed. As many as 240 stocks on the BSE 500 index settled the day in green, while 256 settled the day in red.
Podcast: What to do at Sensex atop 52,000? >>>
Domestic stocks rallied on optimism over global recovery. Sensex took out the 52,000-mark while Nifty closed above the 15,300 level, in a first. We spoke to Deepak Jasani of HDFC Securities to understand his views on the market
