The 30-share BSE Sensex declined by 0.15% to settle at 73,904. The broader NSE Nifty dipped 9 points or 0.04% to 22,453.30.
Here’s how analysts read the market pulse:
“On the daily charts, we can observe that Nifty is in the process of cooling off after the sharp run-up in the previous couple of trading sessions. The zone of 22,400 – 22,350 is the crucial support zone and dips towards these zones should be used as a buying opportunity. The hourly momentum indicator has a negative crossover which is a sell signal and also suggests that there could be some more consolidation before the uptrend resumes. Overall, this dip should be used as a buying opportunity,” said Jatin Gedia of Sharekhan.
Rupak De of LKP Securities, said, “The sentiment remains positive, with the Nifty closing above the important moving average. Momentum also remains positive, as indicated by the RSI in bullish crossover. Over the short term, the trend is positive, with a potential to reach 22,650-22,700. Support is positioned at 22,350-22,300 on the lower end.”
That said, here’s a look at what some key indicators are suggesting for Wednesday’s action:
US market
U.S. stock indexes fell on Tuesday, dragged down by megacap stocks and health insurers as investors grew concerned about the possibility of fewer interest rate cuts than expected from the Federal Reserve in the wake of strong economic data.Shares of rate-sensitive growth stocks including Nvidia , Microsoft and Amazon fell more than 1% each as the U.S. Treasury 10-year yield rose to its highest since late November on Tuesday’s data.
At 10:15 a.m. ET, the Dow Jones Industrial Average was down 471.37 points, or 1.19%, at 39,095.48, the S&P 500 was down 57.57 points, or 1.10%, at 5,186.20, and the Nasdaq Composite was down 245.44 points, or 1.50%, at 16,151.40.
European shares
European stocks kicked off the second quarter slightly higher, with focus on a string of economic data points including inflation data from Germany that could provide clarity on the timing for interest rate cuts by the European Central Bank.
The continent-wide STOXX 600 inched up 0.1% by 0853 GMT on Tuesday as investors returned to markets following an extended weekend and the Easter holiday.
Energy stocks did the heavy lifting with a 1.9% rise as crude prices climbed on signs that demand may improve in China and the United States, and on growing concerns of a widening conflict in the Middle East that could affect supply from the region.
UK’s FTSE 100 and Norway’s benchmark index, that houses oil companies, rose 0.3% and 2.0%, respectively.
Tech View: Doji patterns
Nifty on Tuesday ended 9 points lower to form back-to-back Doji patterns on the daily chart, typically indicating a pause before the next move.
The short-term trend of the Nifty remains positive. Though Nifty is placed at the crucial overhead resistance around 22,500 levels, there is no confirmation of any reversal pattern unfolding at the highs. A decisive move above the hurdle of 22,500-22,600 levels could open more upside in the near term. Immediate support is at 22,350 levels, said Nagaraj Shetti of HDFC Securities.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Tanla Platforms, Aditya Birla Capitals, MTAR Technologies, CAMS, Team Lease Service, and MMTC, among others.
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 Bharti Airtel. A bearish crossover on the MACD on these counters indicates that they have just begun their downward journey.
Most active stocks in value terms
HDFC Bank (Rs 3,057 crore), ICICI Bank (Rs 1,558 crore), Axis Bank (Rs 1,424 crore), L&T (Rs 1,369 crore), RIL (Rs 1,320 crore), Kotak Bank (Rs 1,210 crore), and SBI (Rs 1,196 crore) were among the most active stocks on NSE 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
Tata Steel (Shares traded: 6.9 crore), HDFC Bank (Shares traded: 2.1 crore), SBI (Shares traded: 1.6 crore), ONGC (Shares traded: 1.4 crore), ICICI Bank (Shares traded: 1.4), Axis Bank (Shares traded: 1.3 crore ), and Power Grid (Shares traded: 1.3 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of Bajaj Auto, Adani Ports, Tata Steel, and L&T among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
No major stock hit 52-week lows on Tuesday.
Sentiment meter favours bulls
Overall, the market breadth favoured bulls as 2,853 stocks ended in the green, while 1,003 names settled with cuts.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
