New Delhi: Bulls held the fort for the second straight day as the Nifty managed to close above the crucial 15,100 level, registering the highest daily close in the last 43 days. Buying interest in financials, auto and metals counters aided sentiment as investors got richer by Rs 2.8 lakh crore.
The index managed to form a small bullish candle on the daily chart, raising hopes of further upside. According to analysts, Nifty may witness further bounce towards 15,200 and 15,350 levels if it manages to hold the 15,100 level. Will Nifty now manage to hit all-time highs?
Here’s how analysts read the market pulse:-
Mazhar Mohammad of Chartviewindia.in believes Nifty needs to sustain above the bullish gap area present in the 15,043-14,938 zone. “If this gap zone successfully offers support on dips, in course of time, the bulls can head higher to test their lifetime highs present around the 15,431 level. However, if the bulls fail to defend the 14,938 level on a closing basis, it can encourage the bears. Traders are advised to buy the weakness close to 15,000 level with a stop loss below 14,938 level on a closing basis,” he said.
Gaurav Ratnaparkhi of Sharekhan said the index has crossed the 61.8 per cent retracement of February-April decline and looks to test the all-time high of 15,431. “However, the rally towards the high is unlikely to be a one-sided journey. There can be intermittent pause and consolidation on the way up. The next hurdle is seen at 15,160 level, which is near the 78.6 per cent retracement of February-April fall. The index can witness a brief consolidation near this key Fibonacci level before extending higher. On the flip side, any minor degree dip is likely to find support near the 15,000-14,940 zone.
That said, here’s a look at what some of the key indicators are suggesting for Monday’s action:
US shares slip as telecom stocks fall
he S&P 500 and the Dow fell on Tuesday as sharp declines in telecom stocks and a weak housing starts data overshadowed upbeat earnings from Walmart and Home Depot. At 09:10 p.m. IST, the Dow Jones Industrial Average fell 83.75 points, or 0.22%, to 34,244.04 and the S&P 500 lost 4.99 points, or 0.12%, to 4,158.30. The Nasdaq Composite gained 49.22 points, or 0.37%, to 13,428.86.
European shares near record highs
European stocks neared record highs on Tuesday on optimism around several countries easing economic restrictions, falling unemployment rate in the United Kingdom and strong earnings reports from companies. At 9:10 p.m IST, the pan-European STOXX 600 index was up rose 0.26%, trading just shy of its record high hit last week, with economy-linked cyclical sectors like miners, oil and gas and automakers leading the gains. The German DAX added 0.05% and Italy’s FTSE MIB added 0.07%.
Tech View Nifty50 eyes 15,300 level
Nifty50 on Tuesday broke above a key resistance of 15,100 level on a closing basis. The index formed a small bullish candle on the daily chart. It was the second straight session when the index made a higher high-low formation. Even as the index traded above the moving averages, analysts see a good possibility of it touching the 15,300 level and even all-time highs. “Technically, Nifty50 has seen a breakout of the Falling Channel and sustained above the prior resistance levels on the daily chart, which suggests strength. Moreover, the index has taken good support at the 100-DMA and settled above the ‘Ichimoku Cloud’ formation that indicates continued upside move for the long term. An oscillator Stochastic & MACD also suggested positive crossover on the daily time-frame chart. At present, the index has support at 14,950 level, while on the upside resistance is seen at 15,300 level,” said Sumit Bagaria of Choice Broking.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com
F&O: Declining volatility supporting bullish sentiments
India VIX fell 1.89% from 19.60 to 19.24 level. The fear gauge recorded the lowest close of the last 97 sessions since December 18, 2020. Declining volatility is supporting the bullish market sentiment with breakouts. On the options front, maximum Put Open Interest stood at 14,000 level followed by 14,500 while maximum Call OI was seen at 15,000 followed by 15,500 level. There was Call writing at 15,800 and 15,600 levels, while Put writing was seen at 15,000 and 14,900 levels. Options data suggested the widening of the trading range higher to 14,700-15,300 zones.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Adani Power, Snowman Logistics, Phillips Carbon, Kotak Mahindra Bank, KEI Industries, Pricol, Au Small Finance Bank, City Union Bank, Crompton Greaves Consumers, Jubilant Foodworks, V-Guard, Mahindra Logistics, ACC, Oberoi Realty, Dilip Buildcon, Sical Logistics, Gulshan Polyols,
, Websol Energy System, , Suprajit Engineering, Hi-Tech Pipes, IFB Industries, Olectra Greentech, Globus Spirits, Solar Industries, South West Pinnacle, Autoline Industries, 3M India and Keynote Financial.
The MACD is known for signalling trend reversals in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Steel Authority, Bharti Airtel, Subex, Tata Motors, Cadila Healthcare, Fortis Healthcare, Jindal Stainless, Kopran, SBI Life Insurance, Tin Plate, Jamna Auto Industries, Panacea Biotec, Alembic, Harrisons Malaya, Radico Khaitan, Tilaknagar Industries, Rossari Biotech, Manaksia Coated Metal, Indoco Remedies, IZMO,
, Optiemus Infracom, Chembond Chemical, Cupid, Satia Industries, Hisar Metal Industries, KPR Mill, KSB, Shanthi Gears, Coral India Finance, Asahi Songwon Colors, Bannari Amman Su and Foseco India. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Tuesday’s most active stocks in value terms
Tata Steel (Rs 2,900.26 crore), Tata Motors (Rs 2,852.32 crore), SBI (Rs 2,730.56 crore), Bharti Airtel (Rs 1,856.36 crore), Bajaj Finance (Rs 1,774.83 crore), HDFC Bank (Rs 1,632.20 crore), Axis Bank (Rs 1,396.59 crore), Hindalco (Rs 1,237.96 crore), ICICI Bank (Rs 1,216.89 crore) and RIL (Rs 1,106.73 crore) were among the most active stocks on Dalal Street on Thursday in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.
Tuesday’s most active stocks in volume terms
3i Infotech (Shares traded: 10.72 crore), PNB (Shares traded: 9.14 crore), Tata Motors (Shares traded: 8.61 crore), Federal Bank (Shares traded: 8.45 crore), YES Bank (Shares traded: 8.24 crore), BHEL (Shares traded: 7.61 crore), SBI (Shares traded: 7.09 crore), Vodafone Idea (Shares traded: 6.99 crore), SAIL (Shares traded: 6.67 crore) and Reliance Power (Shares traded: 5.89 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Praj Industries, Gland Pharma, Hindustan Zinc, MRPL and Birla Corp. witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Tuesday signalling bullish sentiment.
Stocks seeing selling pressure
Best Agrolife, Isgec Heavy Engineering, Sundaram Finance RE and Suvidhaa Infoserve witnessed strong selling pressure in Tuesday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls
Overall, the market breadth remained in favour of bulls. As many as 353 stocks on the BSE500 index settled the day in green, while 142 settled the day in red.
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Market continues to see bullish sentiments among investors as both Nifty and Sensex managed to take out crucial resistance levels in style. Will the market manage to hit record highs again? Which stocks or domestic themes can gain the most in the coming days? What are the Nifty Bank charts suggesting?
