Here’s how analysts read the market pulse:
Rohit Singre, Senior Technical Analyst at LKP Securities, said the Doji candle signalled indecision in the market. “The overall structure will be positive as long as the index holds the said level with an upside hurdle in the 16,320-16,400 zone,” he said.
Gaurav Ratnaparkhi of Sharekhan said the short-term target for Nifty is pegged at 16,400. “A gap area in the 16,176-16,146 zone will offer a cushion on the downside. The Nifty50 is expected to form a base near these support parameters and start the next move upward,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Tuesday’s action:
Oil stocks pull Wall Street lower
The S&P and the Dow indices retreated from record highs on Monday as energy and other sectors sensitive to economic growth tumbled on concerns over rising Covid -19 cases. At 11:34 a.m. ET, the Dow Jones Industrial Average was down 79.55 points, or 0.23 per cent, at 35,128.96, the S&P 500 was down 5.31 points, or 0.12 per cent, at 4,431.21, and the Nasdaq Composite was up 17.41 points, or 0.12 per cent, at 14,853.17.
European shares gain marginally
European shares ticked slightly higher after a mixed start, while other regional indices stayed near recent highs with earnings season winding down. The pan-European STOXX 600 index edged 1 point or 0.21 per cent higher to close at 470.97.
Tech View: Nifty turns indecisive at highs
Nifty50 on Monday came under selling pressure at 16,300 level, but the bulls fought back and were in no mood to give in. That resulted in the formation of an indecisive Doji-like candle on the daily chart. Analysts see immediate resistance for the index in the 16,300-16,400 range and support for the NSE barometer in the 16,176-16,146 range. “One can consider buying on dips,” they said.
F&O: Flattish VIX suggests bullish undertone
India VIX remained flattish at the 12.60 level. Stability in volatility indicates that the bulls are holding the market to cheer the fresh momentum. Options data suggested a broader trading range between 16,000 and 16,500 levels, while an immediate trading range was seen between 16,100 and 16,400 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of IDBI Bank, Axis Bank, PVR, Shalby, Dhani Services, Inox Leisure,
, Surana Telecom, Ipca Laboratories, EPL, Valiant Organics, Tilaknagar Industries, Oriental Hotels, Cochin Shipyard, Mazda, Madhav Copper, The United Nilgiri, AKG Exim and Apollo Sindoori Hotels.
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 Nalco,
, DLF, Gujarat Gas, JSW Energy, Gayatri Projects, , Chemcon Speciality, Man Industries, Arvind Fashions, Phillips Carbon, Voltas, Filatex India, Sunteck Realty, Sun TV Network, Century Textiles, ACC, Nitin Spinners, MindTree, Max Ventures, Rupa & Company, Radico Khaitan, Varun Beverages, Neogen Chemicals, Sirca Paints India, , Career Point, Vardhman Textiles, Ruby Mills, Lux Industries, WABCO India, ABB Power Products, IRIS Clothings, and Nalwa Sons Investments. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
Rolex Rings (Rs 1,422.49 crore), IRCTC (Rs 1,411.26 crore), Piramal Enterprises (Rs 1,165.47 crore), Tata Steel (Rs 1,118.34 crore), SAIL (Rs 981.77 crore), SBI (Rs 968.54 crore), Tata Chemicals (Rs 954.94 crore), Adani Enterprises (Rs 916.52 crore), Tata Power (Rs 886.49 crore) and Tech Mahindra (Rs 846.32 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: 94.60 crore), NALCO (Shares traded: 8.55 crore), SAIL (Shares traded: 7.13 crore), Tata Power (Shares traded: 6.69 crore), MPS Infotecnics (Shares traded: 6.42 crore), Bank of Baroda (Shares traded: 5.65 crore), PNB (Shares traded: 5.56 crore), YES Bank (Shares traded: 4.55 crore), Zomato (Shares traded: 4.14 crore) and IDFC First Bank (Shares traded: 3.94 crore) were among the most traded stocks in the session.
Stocks showing buying
Sona BLW Precision Forgings, BASF India, IRCTC, Piramal Enterprises and Magma Fincorp witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Glenmark Life Sciences and Alembic Pharma witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bears
Overall, the market breadth remained in favour of the bears. As many as 153 stocks on the BSE500 index settled the day in green, while 342 settled the day in the red.
Podcast: Which sectors look attractive in a stretched market?
The market is hovering near a fresh record high and is starting to get stretched. Which sectors should you look towards at this current juncture? Will Nifty scale new heights? What do the technical charts suggest?
