Nifty moved in a range of 123 points and formed a Bearish Belt Hold candle on the daily chart. Analysts said bulls may take charge if the index manages a sustained close above 15,915 level.
Here’s how analysts read the market pulse:
Gaurav Ratnaparkhi of Sharekhan, said, the index is still in the trading range and Monday’s high of 15,915 will now act as the key hurdle. “The 15,800-15,750 range will act as an immediate support, while a key short-term support for the index is placed at the swing low of 15,673,” he said.
Mazhar Mohammad of Chartviewindia.in said a correction should get accentuated on a close below 15,670 level, with a target of 15,500. “Sustaining above 15,673 level looks critical for the bulls in the near term to retain an optimistic stance and make an attempt to register a breakout above 15,900 level,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Tuesday’s action:
Wall Street hits new highs
The S&P 500 and Nasdaq indices hit record highs in early trade on Monday, as tech-related growth stocks edged up, while investors awaited corporate earnings later in the week and data on a US labour market recovery. The tech-laden Nasdaq jumped 0.6 per cent, with Microsoft Corp, Apple Inc, Amazon.com Inc and Nvidia Corp providing the biggest boost. All major S&P sectors fell, except technology and utilities, which gained 1 per cent and 0.6 per cent, respectively.
European shares edge lower
European stocks, as measured by the pan-European STOXX 600 index, were down 0.3 per cent, although they were not far off record highs. Germany’s DAX was down 0.1 per cent, while France’s CAC 40 and Britain’s FTSE 100 index dipped 0.5 per cent. Travel and leisure stocks took a particular hit, with the region’s sectoral index falling to a one-month low.
Tech View: Nifty50 forms Bearish Belt Hold
Analysts said the Nifty50 index would find immediate support in the 15,800-750 range. They believe a sustained close above 15,915 level should offer the bulls an edge.
Check out the candlestick formations in the latest trading sessions
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F&O Watch: Nifty needs followup action
India VIX moved up marginally by 0.24% from 13.36 to 13.40 levels. The fear gauge has not moved above the 16-16.50 zone in last three weeks and hovered near its lowest level in last 17 months. Lower volatility indicates an overall bullish market bias, but a small bounce in VIX can give some volatile cues to the market.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of National Aluminium, Dwarikesh Sugar, Tata Steel, Jindal St & Power, Finolex Industries, Axis Bank, Indian Bank, Laurus Labs, Jain Irrigation, India Glycols, Balrampur Chini, Nelco, CSB Bank, Dhampur Sugar, Alankit, Zen Technologies, Dalmia Bharat Sugar, Apollo Hospitals, Websol Energy System, GIC Housing Finance,
, TRF, Poddar Pigments, Saksoft, , PI Industries, Persistent Systems, Satin Creditcare, Mangalam Cement, Bhagyanagar Properties, Univastu India, Abbott India and TVS Srichakra.
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
, NBCC (India), Sun TV Network, Parsvnath Developers, Banco Products, Max Healthcare, India Cements, Aster DM Healthcare, TCNS Clothing, Dr. Lal Pathlabs, Pitti Engineering, Jindal Worldwide, Prakash Pipes, Future Lifestyle, Dilip Buildcon, Astron Paper & Board, MBL Infrastructures, Himatsingka Seid, PPAP Automotive, Ceat, Vardhman Polytex, Mayur Uniquoters, RPG Life Sciences, ABM International, SKF India and Krishana Phoschem. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Monday’s most active stocks in value terms
RIL (Rs 1,965.43 crore), NALCO (Rs 1,546.89 crore), Dodla Dairy (Rs 1,457.05 crore), Tata Steel (Rs 1,374.32 crore), Krishna Institute of Medical Sciences (Rs 1,332.91 crore), SBI (Rs 1,256.80 crore), Thyrocare Technologies (Rs 1,212.63 crore), Bank of Baroda (Rs 1,127.54 crore), Adani Ports SEZ (Rs 1,020.32 crore) and Adani Enterprises (Rs 951.47 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.
Monday’s most active stocks in volume terms
Vodafone Idea (Shares traded: 27.23 crore), NALCO (Shares traded: 19.62 crore), JP Power (Shares traded: 19.51 crore), PNB (Shares traded: 16.56 crore), Bank of Baroda (Shares traded: 12.98 crore), Suzlon Energy (Shares traded: 8.88 crore), Reliance Communication (Shares traded: 8.22 crore), IOB (Shares traded: 6.68 crore), MPS Infotecnics (Shares traded: 6.55 crore) and Central Bank (Shares traded: 6.41 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Bharat Electronics, CSB Bank, NALCO, DCM Shriram, Finolex Industries, Garware Tech,
, Oil India and Infosys witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Anmol India, Autolite (India), OCL Iron and Steel, Rajvir Industries and Uttam Galva Steels witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls
Overall, the market breadth remained in favour of the bulls. As many as 274 stocks on the BSE500 index settled the day in the green, while 220 settled the day in the red.
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