Here’s how analysts read the market pulse:
Rohit Singre, Senior Technical Analyst at LKP Securities said the Doji represented indecision in the market. He sees immediate support for the index in the 16,930-16,800 range.
Mazhar Mohammad of Chartviewindia.in said that unless Nifty50 closes above 17,160 level, the threat of resuming the downswing remains higher that can be confirmed with a decisive close below 17,000 level.
That said, here’s a look at what some of the key indicators are suggesting for Tuesday’s action:
Tech rally lifts Wall Street
Gains in heavyweight technology stocks drove Wall Street indexes higher as investors rushed to take advantage of steep virus-driven losses, with Twitter up on reports that chief Jack Dorsey is expected to step down. At 9:46 a.m. ET, the Dow Jones Industrial Average was up 129.10 points, or 0.37 per cent, at 35,028.44 and the S&P 500 was up 39.39 points, or 0.86 per cent, at 4,634.01. The Nasdaq Composite was up 167.76 points, or 1.08 per cent, at 15,659.41.
Europe shares rise as omicron virus fear eases
European stocks climbed as a relative sense of calm returned to global markets, with investors reassessing their worst-case scenarios for the omicron coronavirus strain. The Stoxx Europe 600 rose 1.2 per cent. The FTSE 100 in London rose 1.2 per cent to 7,122.61. The DAX in Frankfurt gained 0.6 per cent to 15,352.00, and the CAC 40 in Paris advanced 0.8 per cent to 6,797.65.
Tech View: Market in indecisive zone
The strong recovery of the market following a fall in the opening hours, which later was followed by some profit booking reflected the current indecision among investors. Analysts said that for the current bearish trend to halt, the Nifty50 needed to close above its 100-day moving average.
F&O: Consolidation ahead
In the derivatives segment, traders sold both the out-of-money call and put options of the Nifty50 index indicating that they are indecisive about the direction of the market.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Welspun India, BEML, Vikas WSP, Dr. Lal Pathlabs, and Ipca Labs. The MACD is known for signaling 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 SpiceJet, Poonawalla Fincorp, Adani Enterprises, Coffee Day, and MTNL. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
RIL (Rs 2766 crore), Tata Motors (Rs 1975 crore), Tata Power (Rs 1836 crore), Bharti Airtel (Rs 1176 crore), ICICI Bank (Rs 1144 crore), IRCTC (Rs 1086 crore),
(Rs 1081 crore), SBI (Rs 1048 crore), Tata Steel (Rs 1047 crore) and TCS (Rs 1041 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: 65 crore), Tata Power (Shares traded: 8.3 crore), YES Bank (Shares traded: 6.9 crore), PNB (Shares traded: 4.7 crore), SAIL (Shares traded: 4.5 crore), Zomato (Shares traded: 4.4 crore), Tata Motors (Shares traded: 4.3 crore), NALCO (Shares traded: 3.8 crore), and Tata Tele (Shares traded: 3.7 crore) were among the most traded stocks in the session.
Stocks showing buying interest
BEML, Tata Tele, SCI, Saregama India, Easy Trip and Nazara Tech witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure
Sapphire Foods, JM Financial, and Aditya Birla Sun Life AMC witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on these counters.
Sentiment meter favours bears
Overall, the market breadth remained in favour of the bears. As many as 107 stocks on the BSE500 index settled the day in the green, while 393 settled the day in the red.
Podcast: Is more pain likely for broader markets?
Domestic equity markets kicked off the new week with wild swings in the benchmark indices, which settled with mild gains. The market showed a strong recovery in the afternoon session, but gave up the majority of gains in the final hour. The fear and uncertainty over Omicron virus has made traders jittery. Investors lost about Rs 1.4 lakh crore of their notional wealth. Broader markets underperformed the headline peers. BSE midcap index shed a per cent and smallcap index gave up 2 per cent. Fear gauge India VIX gained mildly.
