Amit Trivedi, CMT, Technical Analyst at YES Securities said, “Inability to provide a close above prior week’s high (i.e. 14,527) indicates that Nifty lacked the required momentum on the upside. Level of 14,200 is likely to act as important support zone from a near-term perspective, while sustenance above 14,500 is essential to gain required momentum on the upside.”
“Buying interest was broad-based led by banking, realty and metal stocks with a hope that we are nearing the peak of infection. Banking stocks outshined other major sectoral indices due to the positive beginning of quarterly results. The market may remain volatile in the coming days as Covid cases continue to be high, and also due to the April F&O expiry and the upcoming FOMC meeting,” said Vinod Nair, Head of Research at Geojit Financial Services.
That said, here’s a look at what some of the key indicators are suggesting for Tuesday’s action:
US stocks edge higher on Tesla boost
Wall Street’s main indexes rose on Monday as Tesla shares gained ahead of the electric-car maker’s earnings report, which would kick off this week’s results from heavyweight technology companies. The Dow Jones Industrial Average was up 62.54 points, or 0.18%, at 34,106.03, the S&P 500 was up 7.64 points, or 0.18%, at 4,187.81 and the Nasdaq Composite was up 24.49 points, or 0.17%, at 14,041.30.
Miners, travel shares lift Europe stocks
European stocks inched higher on Monday as strong metal prices boosted miners and optimism related to reopenings following coronavirus lockdowns lifted travel stocks at the start of a busy week of corporate earnings and economic data. The pan-European STOXX 600 index rose 0.29% after it recorded its first weekly loss in eight on Friday.
Tech View: Nifty50 resistance seen at 14,560
Nifty50 on Monday breached the psychologically important 14,500 mark, but failed to hold above it on a closing basis. The index formed an indecisive candle on the daily chart, with a long upper wick, suggesting selling at higher levels. Analysts said the index seemed to have encountered selling pressure, as it entered the bearish gap area present in the 14,526-14559 zone. As long as Nifty50 stays below 14,560 level, any rise will be vulnerable to selloff, they said.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com
F&O: Rising VIX a cause of worry
India VIX moved up 3.55% from 22.69 to 23.49 level. India VIX needs to hold below 20 level to again help a bullish stance in the market. On the options front, maximum Put Open Interest (OI) stood at 14,000 level followed by 13,500, while maximum Call OI was seen at 15,000 level followed by 14,800. There was Call writing at strike prices 14,900 and 14,950 while Put writing was seen at 14,500 and 14,400 levels. Options data suggested a wider trading range between 14,200 and 14,800 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Monday showed bullish trade setup on the counters of Axis Bank, Ashok Leyland, HDFC Bank,
, Indiabulls Housing Finance, , Coal India, Indian Energy Exchange, HDFC Life Insurance, Kotak Mahindra Bank, Muthoot Finance, Godrej Properties,IRCTC, Amara Raja Batteries, IIFL Securities and Siemens.
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 Dabur India, Marico, Thyrocare Tech, Torrent Pharmac, Metropolis Healthcare, eClerx Services, Sasken Technologies, Hester Biosciences, Palash Securities and GKW Ltd. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Monday’s most active stocks
ICICI Bank (Rs 3731.41 crore), HDFC Bank (Rs 2131.83 crore), Tata Steel (Rs 2002.40 crore),
(Rs 1869.80 crore), RIL (Rs 1867.69 crore), HCL Tech (Rs 1827.99 crore), SBI (Rs 1699.84 crore), SAIL (Rs 1650.56 crore), Axis Bank (Rs 1505.10 crore) and Bajaj Finance (Rs 1384.89 crore) were among the most active stocks on Dalal Street on Monday in value terms.
Monday’s most active stocks in volume terms
SAIL (Shares traded: 16.70 crore), PNB (Shares traded: 7.31 crore), Yes Bank (Shares traded: 7.30 crore), ICICI Bank (Shares traded: 6.26 crore), Vodafone Idea (Shares traded: 5.59 crore), SBI (Shares traded: 4.92 crore),
(Shares traded: 3.92 crore), IDFC First Bank (Shares traded: 3.66 crore), M&M Financial Services (Shares traded: 3.59 crore) and Bank of Baroda (Shares traded: 3.49 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Aarti Industries, Atul Ltd, Cadila Healthcare, Greenlam Industries, SRF Ltd, Zydus Wellness and Suven Pharma witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Monday signalling bullish sentiment.
Stocks seeing selling pressure
Suvidhaa Infoserve, AKG Exim, GVK Power & Infra, Khaitan (India), Rajvir Industries, Shirpur Gold Refinery and Jump Networks strong selling pressure in Monday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls
Overall, market breadth remained in favour of bulls. As many as 320 stocks on the BSE 500 index settled the day in green, while 173 settled the day in red.
Podcast: Why are investors ignoring rising Covid cases? >>>
Strong quarterly numbers by ICICI Bank sent banking stocks soaring on Monday, helping the two key indices clock 1 per cent gain each. Investor sentiment was further boosted by measures taken by the government to meet oxygen supplies. The US’ assurance on sending raw materials required for making Covid vaccines also soothened investor nerves. Sensex soared 508 points to close near 43,400 level. Nifty advanced 1 per cent to 14,485. We spoke to Narendra Solanki of Anand Rathi Financial Services to share his views on the market.
