Here’s how analysts read the market pulse:
Mazhar Mohammad of Chartviewindia.in said investors should wait for Nifty to break above the 15,900 level before taking long positions on the index. In case of a strong breakout above 15,900 level, a sustainable upswing will emerge with a target of 16,300 level,” he said.
Independent analyst Manish Shah said Nifty needs to close above the gap resistance zone of 15,830-15,880. If Nifty50 manages to break above the 15,960 level, expect the market to see a swift rally to 16,200-16,300 zone. This could be the biggest buying opportunity in Nifty50 in two months,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Tuesday’s action:
US stocks pare early gains
Wall Street’s main indexes gave up early gains on Monday as worries about the Delta variant of the coronavirus and a slowing U.S. economy overshadowed optimism around more fiscal stimulus and a strong second-quarter earnings season. By 12:15 p.m. ET, the Dow Jones Industrial Average was trading flat after hitting an intra-day record high earlier in the day. The S&P 500 was up 0.05 per cent, and the Nasdaq Composite was up 0.23 per cent, both boosted by a 4.1 per cent jump for Tesla Inc on top of a 6.8 per cent gain last week.
European stocks close at new highs
European stocks ended at a new peak on Monday, as increased dealmaking activity and a batch of strong financial sector earnings helped markets mark a strong start to August. The pan-European STOXX 600 index rose 0.6 per cent to end at a record-closing high of 464.45 points, with retail and technology stocks serving as the best performers.
Tech View: Nifty50 forms ‘Hanging Man’ candle
Nifty50 on Monday saw a gap-up opening, but could not add much to it, as the index faced the hurdle at 15,900 intraday. Analysts said the index needs to hold above the 15,800-834 range to maintain the positive bias. A decisive close above the 15,900 level is a prerequisite for any gain towards the 16,200-300 level, they said.
F&O: India VIX needs to cool down below 12
India VIX remained flattish at the 12.80 level after seeing a decline in the last two sessions. A decline in volatility has again given a grip to the bulls but now VIX has to cool down below 12-level to provide more comfort. Options data suggested a broader trading range between 15,600 and 16,200 levels, while an immediate trading range is seen between 15,800 and 16,000 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Tata Power, Indiabulls Housing Finance,
, , Adani Ports & SEZ, , Bank of India, Gujarat Gas, Puravankara, PI Industries, Piramal Enterprises, Va Tech Wabag, Britannia, Titan Company, Deepak Nitrite, Indian Bank, Advanced Enzyme Tech, Navneet Education, Kaveri Seed Company, , Astral, Emami Paper Mill, Mahanagar Gas, Confidence Petroleum, MOIL, Jindal Drilling, Vinyl Chemicals, Solara Active Pharma, BEML, GMM Pfaudler, Capri Global Capital, IndiaMART InterMESH, JK Cement, Fine Organic Industry, Repro India and Lakshmi Finance.
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 GTL Infrastructure, Brightcom Group, Sequent Scientific, L&T, Sutlej Textiles,
, KEC International, Metropolis Healthcare, Ipca Laboratories, Cyient, Poly Medicure, Ravi Kumar Distiller, Emmbi Industries, Madhav Marbles, Zodiac Clothing, RPSG Ventures, Chemfab Alkalis, Nestle India, Timken India, ICRA, Rajdarshan Industry and India Investment Trust. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
IRCTC (Rs 1,815.96 crore), Sun Pharma (Rs 1,452.46 crore), Tata Steel (Rs 1,385.82 crore), Tata Power (Rs 1,339.32 crore), HDFC (Rs 1,231.23 crore), RIL (Rs 1,042.40 crore), HDFC Bank (Rs 945.27 crore), Zomato (Rs 924.22 crore), Infosys (Rs 903.84 crore) and PI Industries (Rs 881.30 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 the highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Shares traded: 17.73 crore), MPS Infotecnics (Shares traded: 12.73 crore), Trident (Shares traded: 11.83 crore), Tata Power (Shares traded: 10.24 crore), IDFC First Bank (Shares traded: 9.42 crore), YES Bank (Shares traded: 9.29 crore), BHEL (Shares traded: 7.39 crore), Zomato (Shares traded: 6.69 crore), PNB (Shares traded: 6.49 crore) and Suzlon Energy (Shares traded: 5.41 crore) were among the most traded stocks in the session.
Stocks showing buying interest
ACC, Ambuja Cements, Bata India, Dabur India, Deepak Nitrite, DLF, PI Industries, Oberoi Realty, Macrotech Developers and Prestige Estate witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Stylam Industries and Rajvir Industries 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 181 settled the day in the red.
Podcast: Should investors subscribe to 4 IPOs hitting D-St this week?
IPOs of Windlas Biotech, Devyani International, Exxaro Tiles and Krsnaa Diagnostics are slated to hit the market this week. Should investors subscribe to these issues? Will Nifty cross the 15,900 level in the coming days? What are the technical charts suggesting?
