Rohit Singre, Senior Technical Analyst at LKP Securities, said, “Nifty managed to crossed the 15,100 zone decisively which acted as a strong hurdle previously. We may see some more positive move going forward if it manages to sustain above the 15,100 zone on an immediate basis. Nifty has a strong support at the 15K mark and hurdle zone for Nifty is coming near 15,170-15,250 zone.”
“We expect the prevailing consolidation phase to end soon. However, a lot depends on the performance of the global markets. Meanwhile, participants should limit leveraged trades and prefer a hedged approach. Among the sectors, IT and select banking counters look promising while others may continue to trade lackluster. Participants should align their positions accordingly,” said Ajit Mishra, VP – Research, Religare Broking.
That said, here’s a look at what some of the key indicators are suggesting for Wednesday’s action:
Nasdaq roars back as tech stocks gain ground
U.S. stocks advanced on Tuesday, with the Nasdaq jumping over 3% to recoup its losses in the previous session as U.S. bond yields retreated and investors picked up battered technology stocks. Among the biggest boosts to the S&P 500 and the Nasdaq were Tesla Inc, Apple Inc, Amazon.com Inc, Facebook Inc and Microsoft Corp jumped between 2.4% and 7.2% after sharp losses in recent weeks as a rise in yields raised concerns over their high valuations. The Dow Jones Industrial Average rose 0.53%, the S&P 500 gained 1.49%, and the Nasdaq Composite gained 3.17%.
European stocks extend gains on support from oil, utilities
European stocks extended gains on Tuesday after posting their best session in four months a day earlier, as gains in shares of oil and utility companies helped counter losses in miners. The pan-European STOXX 600 edged 0.3% higher after opening lower, with energy and utility sectors rising more than 1.5% each. FTSE 100 was up 0.14% while Germany’s DAX index was trading 0.48% higher.
F&O: Nifty has to cross & hold above 15,100 to stay bullish
India VIX fell 8.85% from 24.67 to 22.49 levels. A cooldown in VIX below 21-20 zone is needed for the bullish grip to continue. On the options front, maximum Put open interest existed at 14,000 followed by 14,500 levels, while maximum Call OI was seen at 16,000 followed by 15,500 levels. Call writing was seen at 15,600 and then 15,500 levels, while there was Put writing at 15,000 and 14,500 levels. Options data suggested an immediate range between 14,900 and 15,250 levels.
Tech View: Nifty may revisit swing high of 15,273
The index has been trading roughly in the 14,900-15,100 range for the past three sessions and analysts said the way the index rallied in the last hour of Tuesday’s trade suggested that it is gearing up for a breakout on the upside. “Zooming into the 15-minute chart, we can see that Nifty50 has made a new three-day high on the back of a big 15-minute green candle towards the close. However, given that it closed within the range, we do not yet have a confirmed breakout,” said Subash Gangadharan of HDFC Securities.
Check out the candlestick formations in the latest trading sessions
ETMarkets.comStocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Tuesday showed bullish trade setup on the counters of REC, Reliance Infrastructure, , Bajaj Consumer Care, TCS, Ramco Industries, Emami, United Breweries, Eicher Motors, Prism Johnson, Poly Medicure, Mangalam Cement, GMM Pfaudler, Oriental Carbon, De Nora India, Chembond Chemicals, Alkali Metals, M M Forgings and Asian Hotels (East).
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Steel Authority of India, Trident, Tata Steel BSL, IDFC, Rain Industries, NOCIL, Arvind, Century Textiles, Varun Beverages, Radico Khaitan, The Ramco Cements, GIC Housing Finance, Sobha, Dilip Buildcon, NCL Industries, Zuari Agro Chemicals, Supreme Industries, Century Enka, Maan Aluminium, Sastasundar Ventures, Matrimony.com, TeamLease Service, N K Industries and Lakshmi Finance.
Tuesday’s most active stocks
BPCL (Rs 8,809.98 crore), Tata Motors (Rs 2,378.14 crore), Kotak Bank (Rs 1,549.29 crore), RIL (Rs 1,525.67 crore), ICICI Bank (Rs 1,433.38 crore), Axis Bank (Rs 1,418.50 crore), Tata Steel (Rs 1,416.08 crore), HDFC Bank (Rs 1,172.58 crore), SBI (Rs 1,091.67 crore) and SBI Life (Rs 1,067.23 crore) were among the most active stocks on Dalal Street on Tuesday in value terms.
Tuesday’s most active stocks in volume terms
Vodafone Idea (Shares traded: 25.89 crore), BPCL (Shares traded: 19.98 crore), BHEL (Shares traded: 10.86 crore), Reliance Power (Shares traded: 8.97 crore), PNB (Shares traded: 7.74 crore), YES Bank (Shares traded: 7.72 crore), Tata Motors (Shares traded: 7.47 crore), IFCI (Shares traded: 6.08 crore), Adani Power (Shares traded: 5.58 crore) and Tata Power (Shares traded: 5.18 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Can Fin Homes, SBI Life, Tube Investments, Adani Power and Poly Medicure witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Tuesday, signalling bullish sentiment.
Stocks seeing selling pressure
Heranba Industries, Best Agrolife, B.C. Power Controls, Novartis India, Nureca, SMC Global Securities witnessed strong selling pressure in Tuesday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bears
Overall, market breadth remained in favour of bulls. As many as 186 stocks on the BSE 500 index settled the day in green, while 312 settled the day in red.
Podcast: Where to hunt for alpha in this market? >>>
Benchmark indices were volatile, traders indecisive and investors lacked conviction. While stock indices rose over 1 per cent on Tuesday in a late rebound, the trading range for them largely remained nearly the same for the third straight session. The BSE Sensex reclaimed 51,000 mark for the day. It closed some 584 points higher. The NSE Nifty50 also closed near 15,100. Despite that the broader market breadth remained weak for the day. We have Ajit Mishra of Religare Securities to share his views on the market.
