Rohit Singre, Senior Technical Analyst at LKP Securities said, “Going forward, 14,750 will act as an immediate and strong support. If it manages to hold that, then some more pullback is possible towards immediate hurdle zone of 15,000-mark followed by 15,100 zone.”
“As of now, there are no signs to the end of this corrective phase. Hence, we could continue to see such volatility in the near term. Traders are advised to avoid getting carried away and rather look for stock-specific opportunities on both sides. As far as levels are concerned, the immediate support for the Nifty is placed around 14,700, while resistance is seen around 15,050,” said Ruchit Jain, Senior Analyst – Technical and Derivatives at Angel Broking.
That said, here’s a look at what some of the key indicators are suggesting for Tuesday’s action:
US stocks fall as focus turns to Fed
US shares fell on Monday below an all-time high as investors awaited cues from the Federal Reserve’s meeting this week amid caution over rising borrowing costs spurred by massive fiscal stimulus. The Dow Jones Industrial Average fell 119.51 points, or 0.37%, to 32,658.81, the S&P 500 fell 16.29 points, or 0.41%, to 3,927.17 and the Nasdaq Composite lost 31.81 points, or 0.24%, to 13,288.26.
European shares rise on economic rebound optimism
European stocks rose on Monday, helped by gains in French food company Danone and betting firm Flutter Entertainment, with optimism about a strong economic rebound calming concerns about quickening inflation. The pan-European STOXX 600 index rose 0.16%, inching closer to a record peak set last year, with travel and leisure , automakers and food & beverage sectors among the top gainers.
Tech View: Nifty forms Hammer candle
Nifty50 on Monday gyrated in the 300-point range and formed a Hammer-like candle on the daily chart. A Hammer formation usually has a bullish connotation, provided there is a positive follow through action in the next trading session. Analysts said the index needs to close above 15,050 level to change the sentiment. For the day, Nifty closed at 14,929, down 101.45 points or 0.67 per cent.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com
F&O: Falling VIX offers hope
India VIX fell 2.22 per cent from 21.70 to 21.22 level. VIX needs to cool down below the 21-20 zone for the bullish grip to continue and ensure a smoother move for the market. There was Call writing at strike price 15,000 and then 15100, while Put writing was seen at 14,500 and then 14,100 levels. Options data suggested a wider trading range between 14,500 and 15,500 levels, while the immediate trading range stood between 14,800 and 15,200 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Monday showed bullish trade setup on the counters of JSW Steel, Indian Energy Exchange, Orient Paper, Oberoi Realty, V-Guard Industries, Godawari Power & Ispat, Mahanagar Gas, Sundaram Fasteners, Dr. Lal Pathlabs, Gokaldas Exports, Sanco Industries, Gokul Refoils & Solvent, Tree House Education, INEOS Styrolution, Whirlpool of India, Cigniti Technologies and ICRA Ltd.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Coal India, Shree Renuka Sugars, HDFC Life Insurance, India Cements, Pricol, Au Small Finance Bank, Cummins India, Castrol India, Trent, Nippon Life AMC, ACC, Deepak Nitrite, Rico Auto Industries, IIFL Securities, Sterlite Technologies, UltraTech Cement, Gokul Agro Resources, Eveready Industries, Tanla Platforms, Heritage Foods, Finolex Cables, KIOCL, ADF Foods, Deccan Cements and V Mart Retail.
Monday’s most active stocks
Axis Bank (Rs 1641.43 crore), MTAR Technologies (Rs 1637.80 crore), RIL (Rs 1620.91 crore), SBI (Rs 1604.42 crore), ICICI Bank (Rs 1458.17 crore), Tata Motors (Rs 1418.86 crore), Bajaj Finance (Rs 1131.01 crore), Tata Steel (Rs 1127.62 crore), Tata Power (Rs 1123.13 crore) and Adani Ports SEZ (Rs 957.52 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: 12.96 crore), BHEL (Shares traded: 10.78 crore), Tata Power (Shares traded: 10.15 crore), PNB (Shares traded: 8.38 crore), YES Bank (Shares traded: 8.03 crore), Bank of Baroda (Shares traded: 7.50 crore), SAIL (Shares traded: 6.17 crore), Reliance Power (Shares traded: 5.53 crore), UCO Bank (Shares traded: 5.04 crore) and Tata Motors (Shares traded: 4.51 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Poly Medicure, Orchid Pharma, Intellect Design, Vaibhav Global and Indian Energy Exchange witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Monday signalling bullish sentiment.
Stocks seeing selling pressure
Best Agrolife, Global Education, Home First Finance Company, Sanginita Chemicals, SMC Global Securities, Rajvir Industries, B.C. Power Controls, Visesh Infotecnics, Quintegra Solutions and Gangotri Textiles witnessed strong selling pressure in Monday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bears
Overall, market breadth remained in favour of bears. As many as 157 stocks on the BSE 500 index settled the day in green, while 342 settled the day in red.
Podcast: Can rising Covid cases and inflation pull down Nifty further? >>>
With inflation touching 27-month high, US bond yields hitting a 13-month peak and daily Covid cases surpassing 25,000 — the highest in 3 months, domestic investors had enough reasons to trim stock holdings on Monday. Positive trading in European market, though, helped the market recover some ground. Sensex settled the day 397 points lower while Nifty50 ended below the 14,950 mark. We spoke to Sanjeev Hota of Sharekhan to share his views on the market.
