Nimish Shah of Waterfield Advisors said, a correction of up to 10 per cent from Nifty50’s peak value of 15,200 would be a good support level. This would mean 13,600-13,700 levels. “Now is the time to start stocking up, as the downside is not likely to be as deep and long. This period may not materially derail growth expectations,” he added.
“Nifty has formed a hammer candle pattern on the daily chart, which hints that if current levels are held, we may see some positive reversal in coming sessions. A strong base is still at 14,250-14,200 zone. If the index manages to hold, then good recovery possible is towards immediate hurdle zone of 14,450-14,550 zone”
That said, here’s a look at what some of the key indicators are suggesting for Tuesday’s action:
US stocks slip from record highs
Wall Street’s main indexes dipped on Monday although the S&P 500 and the Dow were still near record levels, as investors anticipated first-quarter earnings season for any hints that corporate America was rebounding from the impact of the COVID-19 pandemic. he Dow Jones Industrial Average fell 92.61 points, or 0.27%, to 34,108.06, the S&P 500 lost 5.60 points, or 0.13%, to 4,179.87 and the Nasdaq Composite lost 28.53 points, or 0.20%, to 14,023.81.
European shares inch to record highs
European stocks inched higher on Monday, extending their record-setting rally, as optimism about a solid start to the earnings season offset a worrying resurgence in COVID-19 cases globally. The pan-European STOXX 600 index rose 0.1% after marking its seventh straight week of gains on Friday, while an index of euro zone shares rose 0.1% to touch its highest since September 2000.
Tech View: Nifty chart signals active buying at lows
Nifty50 tumbled over 250 points on Monday, but formed a Bullish Hammer candle on the daily scale, suggesting that intraday selling was bought into. Analysts said it was testing of the 14,200 level that brought buying on Nifty50 at lows. This level has been offering strong support to the index for the past few weeks and will do so in the immediate future, they said. Rohit Singre of LKP Securities said a strong base is still present in the 14,250-14,200 range and if the range is sustained, a reversal is likely in the coming sessions and that may take the NSE barometer towards the 14,450-14,550 range.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com
F&O: VIX sees a spike
India VIX moved up 10.22% from 20.40 to 22.48 levels. India VIX needs to hold below 20 level to again trigger a bullish stance in the market. On the options front, maximum Put Open Interest stood at 14,000 level followed by 13,500, while maximum Call OI was seen at 15,000 followed by 14,500 levels. There was Call writing at strike prices 14,700 and 14,600, while Put writing was seen at 14,200 and 13,900 levels. Options data suggested a wider trading range between 14,000 and 14,700 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Monday showed bullish trade setup on the counters of Everest Kanto Cylinder, Jain Irrigation, Den Networks, Elgi Equipments, Dixon Technologies, Ester India, Emami Paper Mill, Mold-Tek Packaging, Seya Industries, NBI Industrial Finance and The Grob Tea Company.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of
, Indian Overseas Bank, NMDC, Prakash Industries, Rana Sugars, Titan, Welspun Corp, Pricol, Suven Pharmaceutical, L&T Technology Services, Eveready Industries, NCL Industries, KM Sugar Mills, Man Industries, Cyient, KIOCL, Heritage Foods, TCI, Sumit Woods, Alkali Metals, Madhav Copper, V Mart Retail and Welspun Investments.
Monday’s most active stocks
Wipro (Rs 2061.47 crore), Tata Motors (Rs 1973.16 crore), SBI (Rs 1739.59 crore), Infosys (Rs 1700.55 crore), Tata Steel (Rs 1695.96 crore), Cipla (Rs 1683.78 crore), HDFC Bank (Rs 1677.23 crore), Adani Ports & SEZ (Rs 1655.53 crore), RIL (Rs 1622.51 crore) and ICICI Bank (Rs 1561.67 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: 13.23 crore), PNB (Shares traded: 12.23 crore), Yes Bank (Shares traded: 7.51 crore), Tata Motors (Shares traded: 6.58 crore), SAIL (Shares traded: 6.07 crore), IDFC First Bank (Shares traded: 5.67 crore), SBI (Shares traded: 5.33 crore), Bank of Baroda (Shares traded: 4.99 crore), Wipro (Shares traded: 4.38 crore) and Tata Power (Shares traded: 4.37 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Wipro, Cadila Healthcare, Greenpanel Industries, KDDL, Saregama India, Xpro India, Vivimed Labs, Prabhat Dairy and
witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Monday signalling bullish sentiment.
Stocks seeing selling pressure
Asian Hotels (West), AKG Exim, Generic Engineering, Global Vectra Helicorp, Sharda Motor, Spencer’s Retail, Suvidhaa Infoserve, Taj GVK Hotels and Zodiac Clothing 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 79 stocks on the BSE 500 index settled the day in green, while 415 settled the day in red.
Podcast: Will June quarter be a washout for India Inc? >>>
Benchmark indices took a beating as fresh Covid curbs threatened the much-awaited economic revival. Fuelling those concerns was a six-day complete lockdown announced by Delhi, which would be effective from tonight. Analysts said as more states announce curbs to restrict rising virus cases, tall FY22 earnings projections could be in for deep cuts. It was all reflected on Sensex that fell 883 points for the day to close below the 48,000 level. Nifty settled the day around 14,360, after testing sub-14,200 levels earlier in the day. We spoke to Narendra Solanki of Anand Rathi Financial Services to share his views on the market.
