Rohit Singre, Senior Technical Analyst at LKP Securities said, “On the higher side, 15,000-15,050 zone is a strong hurdle. We have been witnessing selling pressures from mentioned levels. So for the fresh upside, the index needs to sustain above 15,050 zone. Immediate support is coming near 14,800-14,750 zone. Any break below said levels can increase selling pressure.”
“Indian market is impacted due to rising crude prices and selling by both FIIs & DIIs. We can expect FII selling to calm down post the Fed policy meet and ease in US bond yield as an accommodative outlook is expected. The domestic sentiment is suppressed by rising Covid-19 cases, increasing the risk of a second wave and fall in macro data like production and rise in inflation,” said Vinod Nair, Head of Research at
.
That said, here’s a look at what some of the key indicators are suggesting for Wednesday’s action:
Tech stocks lift US stocks
The S&P 500 hit an all-time high on Tuesday while the Nasdaq touched a two-week peak as technology stocks caught a bid ahead of the Federal Reserve’s two-day policy meeting. The Dow Jones Industrial Average fell 112.00 points, or 0.34%, to 32,841.46, the S&P 500 gained 4.45 points, or 0.11%, to 3,973.39 and the Nasdaq Composite gained 102.93 points, or 0.76%, to 13,562.64.
European shares rise on upbeat forecasts
European stocks rose on Tuesday as German carmaker Volkswagen and online fashion retailer Zalando jumped following upbeat earnings forecasts, while investors awaited the U.S. Federal Reserve’s views on a recent pick-up in inflation. The pan-European STOXX 600 index rose 0.84%, inching closer to a record peak set last year and tracking an overnight rally on Wall Street on optimism about an eventual economic recovery from the pandemic lows.
Tech View: Nifty50 forms a bearish candle
Nifty declined for the third straight session on Tuesday and formed a bearish candle on the daily chart. During the day, the index broke below its 20-day moving average. Analysts said market is likely to see sideways action now, but any failure to stage a recovery from here on could potentially send the Nifty tumbling towards the 14,720 level, which is near Nifty’s 50-day simple moving average. Mazhar Mohammad of Chartviewindia.in said the index could trade sideways to positive, provided the bulls manage to pull off a close above 15,000 level.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com
F&O: India VIX eases further
India VIX fell 4.90% from 21.22 to 20.19 levels. A cooldown in VIX below 20 level is required for the bullish grip to continue and the market to see a smoother move. Call writing is seen at 15,000 and then 15,400 levels, while there was Put writing at 14,800 and 14,600 levels. Options data suggested a trading range between 14,700 and 15,200 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Tuesday showed bullish trade setup on the counters of Wipro, The New India Assurance, Zensar Technologies, Navneet Education, PVR, Jamna Auto, Cyient, IIFL Finance, Prism Johnson, ICICI Lombard, Adani Green Energy, Omax Auto, Gulshan Polyols, Zydus Wellness, Arvind SmartSpaces, JBM Auto, Hester Biosciences and Orient Press.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Indiabulls Real Estate, NTPC, GMR Infrastructure, NBCC (India), Ambuja Cements, Aditya Birla Capital, Tata Chemicals, IRCTC, GSFC, DCW, Tata Motors, Welspun Corp, InterGlobe Aviation, Gujarat State Petronet, APL Apollo Tubes, Mahanagar Gas, Star Cement, HDFC AMC, Dalmia Bharat Sugar, SRF, BASF India, TeamLease Service, Kennametal India and NBI Industrial Finance.
Tuesday’s most active stocks
TCS (Rs 1524.28 crore), SBI (Rs 1452.27 crore), RIL (Rs 1349.18 crore), Infosys (Rs 1301.15 crore), Tata Motors (Rs 1250.78 crore), Tata Communications (Rs 1106.03 crore), Adani Ports SEZ (Rs 1084.75 crore), ICICI Bank (Rs 1075.68 crore), HDFC Bank (Rs 1044.99 crore) and Asian Paints (Rs 1033.22 crore) were among the most active stocks on Dalal Street on Tuesday in value terms.
Tuesday’s most active stocks in volume terms
Vodafone Idea (Shares traded: 18.33 crore), PNB (Shares traded: 9.98 crore), BHEL (Shares traded: 6.72 crore), Bank of Baroda (Shares traded: 6.52 crore), SAIL (Shares traded: 5.50 crore), YES Bank (Shares traded: 5.34 crore), Tata Power (Shares traded: 5.03 crore), ITC (Shares traded: 4.88 crore), Reliance Power (Shares traded: 4.51 crore) and GTL Infra (Shares traded: 4.38 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Intellect Design, Zensar Tech, Firstsource Solutions, General Insurance Corporation and Vaibhav Global witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Tuesday signalling bullish sentiment.
Stocks seeing selling pressure
Bcl Industries, B.C. Power Controls, Global Education, Novartis India, Ravinder Heights, Shrenik, Silgo Retail and SMC Global Securities witnessed strong selling pressure in Tuesday’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 218 stocks on the BSE 500 index settled the day in green, while 276 settled the day in red.
Podcast: What’s making the Sensex so volatile? >>>
Domestic stocks declined for the third straight day today. Volatility continued as Sensex settled flat after rallying about 500 points intraday. This was in contrast to Monday’s trade when the index settled about 400 points lower after taking a 1,000-point dive intraday. Nifty ended the day just above 14,900 level, as buying in FMCG and IT stocks was countered by selling in financials. We spoke to Ajit Mishra of Religare Broking to share his views on the market.
