Nifty kept paring any gains made throughout the day, eventually forming a Bearish Belt Hold candle on the daily chart, reflecting selling pressure. Analysts said, only a breach above the 15,300 level can open doors for any further move. As we near the derivatives expiry for May, will the market move upward or consolidate in a narrow range?
Here’s how analysts read the market pulse:-
Manish Hathiramani, Technical Analyst at Deen Dayal Investments, said, a breach of the 15,300 level can open up doors for 15,550-15,600 levels. “Till Nifty holds 14,900-15,000 level, we will remain in a bullish territory and one can utilise any correction in the index to accumulate long positions,” Hathiramani said.
Rohit Singre of LKP Securities said that the market structure will remain positive as long as the index stays above the 15,000 level. He advised traders to book some profits in the 15,330-15,430 range.
That said, here’s a look at what some of the key indicators are suggesting for Wednesday’s action:
US shares give up gains after moving higher
Wall Street’s main indexes fell in choppy trading on Tuesday. Tech-heavy Nasdaq fell after leading gains. At 09:20 p.m. IST, the Dow Jones Industrial Average fell 40.20 points, or 0.12%, to 34,353.30, the S&P 500 fell 7.92 points, or 0.17%, to 4,189.99 and the Nasdaq Composite fell 21.20 points, or 0.16%, to 13,639.98.
European shares hit record high
European stocks hit record highs on Tuesday, as a billion-dollar deal combining two of Germany’s biggest property developers and a rally in technology shares after soothing comments on inflation lifted investor sentiment. The pan-European STOXX 600 index rose 0.13% to an all-time high of 445.66 points after it surpassed its early-May peak of 446.19.
Tech View: Nifty50 forms Bearish Belt Hold candle
Nifty50 on Tuesday faced selling pressure around its immediate resistance of 15,300 level. The index formed what looked like a Bearish Belt Hold for the day, even as it continued to make higher high and low formations for the third straight day. Analysts said that the 15,300 level may continue to remain key resistance for the index, breaching which the NSE barometer can hit fresh record highs. They see support for the index in the 15,150-15,000 range. A Bearish Belt Hold reflects selling pressure from the word go. It is formed when the opening level and the intraday level of the index are nearly the same.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com
F&O: VIX falls below 19 level
India VIX fell down by 1.50 per cent from 19.13 to 18.84 levels. India VIX needs to hold below the 20 zone to extend the bullish market momentum towards new lifetime territory. On the option front, maximum Put Open Interest was seen at 15,000 level, followed by 14,500, while maximum Call OI was seen at 15,500 followed by 15,300 level. Call writing was seen at 15,300 and 15,350 levels, while Put writing was seen at 15,200 and 15,100 levels. Option data suggests a trading range between 15,000 and 15,400 zones.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Jindal Saw, Elecon Engineering,
, Bajaj Consumer Care, Tata Chemicals, , Genus Power Infrastructure, Finolex Industries, Aditya Birla Fashion, Refex Industries, MphasiS, Waterbase, Max Financial Services, SMS Pharmaceuticals, Onward Technologies, Jagsonpal Pharma, TTK Prestige, Raj Television Network, Phoenix Mills, L&T Infotech, Kansai Nerolac Paint, Sobha, Albert David, Sundaram Finance, Mahindra EPC Irrigation, Huhtamaki India, 63 Moons Technologies, Blue Star, Sheela Foam, Ador Welding, Matrimony.com, Gandhi Specialty, Gillette India and Indo National.
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 Adani Power, Himadri Speciality, Tata Motors, Network 18 Media, Lupin, Sun TV Network, Alembic, Lincoln Pharmacy, Bharat Forge, Alkem Laboratories, Welspun Corp, Rallis India, Dhampur Sugar, Magma Fincorp, Poly Medicure, Coforge, Greenpanel Industries, Prism Johnson,
, Shalby, Ramkrishna Forgings, Dhanuka Agritech, Borosil, Gravita India, Gulshan Polyols, Oracle Financial Services, Mahindra Logistics, Ganesha Ecosphere, Tata Investment, , Alphageo (India), D P Wires, Ambika Cotton Mi, SIL Investments and Kirloskar Industries. 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
AmaraRaja Batteries (Rs 2,914.64 crore), SBI (Rs 2,303.80 crore), Tata Steel (Rs 2,013.80 crore), JSW Steel (Rs 1,555.28 crore), HDFC Bank (Rs 1,427.34 crore), RIL (Rs 1,346.69 crore), Concor (Rs 1,289.29 crore), Tata Motors (Rs 1,183.82 crore), SAIL (Rs 1,156.59 crore) and ICICI Bank (Rs 964.00 crore) were among the most active stocks on Dalal Street 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
PNB (Shares traded: 16.35 crore), Dish TV India (Shares traded: 13.40 crore), Reliance Power (Shares traded: 11.86 crore), Union Bank India (Shares traded: 9.86 crore), SAIL (Shares traded: 9.18 crore), BHEL (Shares traded: 8.76 crore), YES Bank (Shares traded: 8.61 crore), Vodafone Idea (Shares traded: 8.17 crore), HFCL (Shares traded: 6.43 crore) and 3i Infotech (Shares traded: 5.71 crore) were among the most traded stocks in the session.
Stocks showing buying interest
TTK Prestige, Finolex Cables, Supreme Petro, Relaxo Footwear and Concor witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
DSJ Communications, Keerti Knowledge and Skills, LCC Infotech, Moksh Ornaments and SMC Global Securities witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bears
Overall, the market breadth remained in favour of bears. As many as 235 stocks on the BSE500 index settled the day in the green, while 260 settled the day in the red.
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