Manish Hathiramani, technical analyst at Deen Dayal Investments said, “If we disrespect today’s low, we can fall further to 14,250. On the upside, until we do not conquer 14,950, we will not be in a bullish market and the index will continue to remain sideways with a bias on the downside.”
“High valuation added further concern due to a possible downgrade in Q1FY22 earnings. Barring IT, metal and telecom, all sectors remained in the red. A policy decision in the upcoming MPC announcement and Q4 earnings will define market volatility in the coming days,” 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 shares hit all-time highs after strong jobs data
The S&P 500 and the Dow hit record highs on Monday as investors cheered strong jobs data and looked for a report on the services sector with signals that 2021 could see the best annual economic growth in nearly four decades. The Dow Jones Industrial Average was up 303.10 points, or 0.91%, at 33,456.31, the S&P 500 was up 34.30 points, or 0.85%, at 4,054.17, and the Nasdaq Composite was up 110.71 points, or 0.82%, at 13,590.81.
European shares closed for Easter Monday
European markets were closed on account of Easter Monday. Futures tracking the domestically focused Russell 2000 jumped about 1.5% as Friday’s report showed US nonfarm payrolls surged by 916,000 jobs in March, well above 647,000 forecast by a Reuters poll of economists.
Tech View: 14,450 to act as trend decider for Nifty
Dalal Street traders turned extremely bearish on Nifty50 formed a long bearish candle for the day after the Maharashtra government imposed serious curbs in the state to stem the spread of Covid infection. “Even today, breaking all the important supports, the market has gone back to 14,450 level and come back. This level is likely to continue acting as a trend decider,” said analysts.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com
F&O: VIX shoots up 6.2%
India VIX moved up 6.163% from 19.98 to 21.21 levels. A spurt in volatility from lower levels is keeping the market volatile amid selling pressure at higher zones. On the options front, maximum Put Open Interest was seen at 14,000 level followed by 14,500 while maximum Call OI was seen at 15,000 and 16,000 levels. There was Call writing at strike prices 15,000 and 14,700 while Put writing was seen at 13,900 and 14,300 levels. Options data suggested a wider trading range between 14,300 and 15,100 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Monday showed bullish trade setup on the counters of Wipro, NMDC, Infosys, Hindustan Construction Company, NIIT, Dish TV India, Suven Life Sciences, TVS Motor, Punjab & Sind Bank, Tata Elxsi, Lupin, Mishra Dhatu Nigam, The Ramco Cements, Jyothy Labs, Caplin Point Lab, Century Plyboards, TV Today Network, Mahindra Holidays and Future Enterprises.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of JSW Energy, CG Power and Industries, Aarti Drugs, APL Apollo Tubes, Polycab India, Inox Wind, KEI Industries, Mahindra Logistics, Sundaram Fasteners, J B Chemicals, Endurance Technologies, Grindwell Norton, Hester Biosciences, 3M India and Schaeffler India.
Monday’s most active stocks
Tata Steel (Rs 2626.48 crore), Tata Motors (Rs 2012.56 crore), Bajaj Finance (Rs 1871.75 crore), SBI (Rs 1837.95 crore), Adani Enterprises (Rs 1780.84 crore), TCS (Rs 1705.30 crore), JSW Steel (Rs 1527.60 crore), RIL (Rs 1363.52 crore), Infosys (Rs 1333.62 crore) and ICICI Bank (Rs 1331.53 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: 17.76 crore), SAIL (Shares traded: 14.99 crore), PNB (Shares traded: 10.39 crore), YES Bank (Shares traded: 8.31 crore), Tata Motors (Shares traded: 6.62 crore), JP Power (Shares traded: 5.62 crore), SBI (Shares traded: 5.17 crore), BHEL (Shares traded: 4.93 crore), IDFC First Bank (Shares traded: 4.84 crore) and Tata Power (Shares traded: 4.83 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Grasim Industries, Happiest Minds, Atul Ltd, Ambuja Cements, JSW Steel, Infosys, Dr. Lal Path Labs, Orchid Pharma, Tata Steel, UltraTech Cement, Vedanta and Steel Authority of India witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Monday signalling bullish sentiment.
Stocks seeing selling pressure
Khaitan (India), Suvidhaa Infoserve, Ortin Laboratories, BCL Industries, AKG Exim, Rajvir Industries, Shrenik Ltd, Atlas Cycles (Haryana), Kohinoor Foods and Jump Networks 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 105 stocks on the BSE 500 index settled the day in green, while 392 settled the day in red.
Podcast: Amid fresh Covid curbs, should you avoid cyclical stocks? >>>
The imposition of stricter restrictions in Maharashtra due to rising Covid-19 cases sparked a sell-off on Dalal Street. The 30-share pack Sensex plummeted 870.51 points or 1.74 per cent to close at 49,159.32. Its broader peer NSE Nifty tumbled 229.55 points or 1.54 per cent to settle at 14,637.80. We spoke to A.K. Prabhakar of IDBI Capital Markets to share his views on the market.
