Nifty traded in a narrow range of 84 points and managed to reclaim the crucial 15,800 level, forming a bullish candle on the daily chart. Analysts said the market may turn bullish if the index manages to breach the 15,900 level.
Here’s how analysts read the market pulse:
Rajesh Palviya of Axis Securities, said, Nifty50 negating lower low-high formation indicates strength. “Any sustainable move above 15,900 level may drive the index towards the 16,000-16,100 range. Any violation of an intraday support zone of 15,800 level may trigger profit booking towards 15,750-15,700 level,” Palviya said.
Gaurav Ratnaparkhi of Sharekhan said, Nifty50 is now approaching the key barrier of 15,900. “Once that is crossed on a closing basis, it will be set for a swift rally towards 16,400. On the downside, the swing low of 15,635 will now act as crucial support,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Tuesday’s action:
Wall Street shut for holiday; Dow Jones futures up 0.2%
Dow Jones Industrial Average futures traded 61 points or 0.18 per cent higher at 34,738.0 as Wall Street assumed a holiday for Independence Day. On Friday, the S&P 500 had risen 0.8 per cent, its seventh straight gain and seventh consecutive all-time high, the Nasdaq had set a record, getting a boost from technology stocks, and the Dow Jones Industrial Average 0.4 per cent to 34,786.35. Trading will resume on Tuesday.
European shares clock modest gains
The STOXX index of 600 leading European companies was last seen trading 0.3 per cent higher, reversing earlier losses after data showed euro zone businesses expanded activity at the fastest rate in 15 years in June. Investors weighed surging European business activity and a welcome US jobs report against worries about the highly transmissible Delta variant of COVID-19.
Activity for British services firms also soared in June, albeit at a slightly slower rate. Britain’s FTSE was up 0.5 per cent ahead of an announcement by Prime Minister Boris Johnson expected to confirm an end to Covid-19 restrictive measures in England on July 19.
French shares also recouped losses sustained after Health Minister Olivier Veran warned that France could be heading for a fourth wave of the pandemic due to the Delta variant.
Tech View: Nifty50 reclaims 15,800, eyes all-time highs
Analysts said the defending of the 15,800 level holds key fo the Nifty50 index. A breach of the 15,900-920 range will turn the sentiment bullish, they said. On the downside, they see support at 15,700-15,600 levels.
Check out the candlestick formations in the latest trading sessions
ETMarkets.comF&O: Nifty negates lower high-lows of 6 sessions; sends out bullish signal
India VIX fell marginally 0.19 per cent from 12.09 to 12.06 level. India VIX gradually drifted lower and hovered near its lowest level in the last 17 months. Lower volatility indicates a rangebound move, but at the same time every decline may get bought into.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Subex, OnMobile Global, Hindalco Industries, Ashok Leyland, Tata Coffee, LT Foods, Canara Bank, Delta Corp, Avanti Feeds, Reliance Industries, Redington (India), Spencer’s Retail, Axis Bank, Puravankara, Mahindra Holidays, Orient Cement, Coffee Day Enterprise, Havells India, , Gravita India, IOL Chemicals, Pidilite Industries, Orient Abrasives, RPP Infra Projects, Sterlite Technologies, Bharat Forge, Tata Communications, Arvind Fashions, Graphite India, TVS Electronics, Natco Pharma, Oberoi Realty, Kansai Nerolac Paint, ABB Power Products, Jocil, V Mart Retail, WABCO India, Page Industries, Bigbloc Construction, Sanofi India and Nxtdigital.
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 Dwarikesh Sugar, Biocon, Au Small Finance Bank, Balrampur Chini, Birla Tyres, KEI Industries, Rossell India, Cyient, North Eastern Carry, Ucal Fuel System, APL Apollo Tubes, Hisar Metal Industries, Sagar Cements, India Motor Part and Naga Dhunseri Group. 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
(Rs 1,702.79 crore), Route Mobile (Rs 1287.03 crore), (Rs 1158.73 crore), HFCL (Rs 1029.56 crore), Info Edge (Rs 906.92 crore), India Pesticides (Rs 905.19 crore), Tata Steel (Rs 881.78 crore), Happiest Minds (Rs 856.43 crore), Adani Ports SEZ (Rs 789.59 crore) and Indiabulls Housing Finance (Rs 787.44 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: 43.24 crore), HFCL (Shares traded: 12.40 crore), Reliance Communication (Shares traded: 8.10 crore), YES Bank (Shares traded: 7.01 crore), Subex (Shares traded: 6.76 crore), Tata Power (Shares traded: 6.16 crore), IDFC First Bank (Shares traded: 5.31 crore), PNB (Shares traded: 5.03 crore), Orient Green Power (Shares traded: 4.84 crore) and NALCO (Shares traded: 4.19 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Balkrishna Industries, Coforge, Dabur India, Godrej Agrovet, HFCL, Avanti Feeds, Jyothy Labs, Krishna Institute of Medical Sciences and ISGEC Heavy Engineering witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Monday signalling bullish sentiment.
Stocks seeing selling pressure
Autolite (India), Hindcon Chemicals, OCL Iron and Steel 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 316 stocks on the BSE500 index settled the day in the green, while 179 settled the day in the red.
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