Nifty rose for the seventh straight session and formed a bullish candle on the daily chart. Analysts said there is a good chance of Nifty50 further extending these gains and climbing to 15,700 level if it manages to hold the crucial support level of 15,370. Will Nifty continue its upward journey or consolidate a bit in the next few sessions?
Here’s how analysts read the market pulse:
Mazhar Mohammad of Chartviewindia.in said the evolving line studies are projecting a near-term hurdle around 15,720 level. “Traders can look for a target of 15,750-850 levels. It is critical for the index to sustain above 15,374 to retain positive bias. Traders can use any intraday Nifty50 dips to create fresh longs, with a stop loss below 15,374 on a closing basis,” he said.
Ajit Mishra of Religare Broking, said, the market will eye the GDP and auto sales data before moving any further. “The last leg of the earnings season is expected to induce stock-specific volatility. We reiterate our bullish yet cautious stance on the market and suggest aligning positions according to the prevailing uptrend.”
That said, here’s a look at what some of the key indicators are suggesting for Tuesday’s action:
Global shares
Global equities were firmly on track to post a fourth straight month of gains on Monday, while the dollar struggled broadly ahead of European and US data this week that will provide a clearer picture on the global economy’s recovery path. MSCI’s broadest index of world stocks drifted 0.1 per cent higher, putting the gauge on track for a 1.4 per cent gain for May.
But US stock futures edged lower and European cash equities trading was subdued on Monday due to holidays in the US and Britain, with benchmark indices sticking to well-worn ranges.
F&O
Nifty opened flat on Monday, and after seeing a slight dip in the initial hour, the bulls pulled the index back and it escalated throughout the day. The index touched yet another lifetime high of 15,606 and closed the session near the day’s high point, with a gain of around 150 points. It breached its previous day’s low, but smoothly managed to cross a psychological hurdle at 15,500 level.
Technically, Nifty formed a strong bullish candle on the daily scale and continued to form higher highs for the seventh session in a row. Now it has to hold above 15,500 level to witness a bounce towards a fresh lifetime high of 15,750, while on the downside support exists at 15,431 and 15,300 levels.
Tech View
Nifty50 on Monday scaled a new closing high of 15,582 and formed a bullish candle on the daily chart. Monday’s candle was made after back-to-back indecisive candles seen in the last couple of sessions, and this instilled confidence among traders. Analysts said there is a good possibility of Nifty50 reclaiming the 15,700 level in the coming days, as long as it stays above crucial support at 15,370.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of GAIL (India), Nippon Life AMC, Gujarat Gas, Dabur India, Jain Irrigation, Havells India, Dr. Lal Pathlabs, Intense Technologies, Dhanuka Agritech, Tata Communications,
, Mahindra Logistics, KPR Mill, Venus Remedies, Responsive Industries, Hilton Metal Forging, Kewal Kiran Clothing, and Eimco Elecon.
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 3i Infotech, Rashtriya Chemicals, Tata Coffee, Aditya Birla Capital, Mangalore Refine, Time Technoplast, Centrum Capital, Phillips Carbon, Bajaj Finance, Deepak Fertilisers, Wockhardt, Tamilnadu Petroproducts, Patel Integrated Logistics, Himatsingka Seide, Hikal, Borosil Renewables, Va Tech Wabag, Jindal Poly Films, Texmaco Infrastructure, BF Utilities, GHCL, Welspun Enterprises, Ramkrishna Forgings, Amrutanjan Health Care, Cyient, Indo Rama Synthetics, Unichem Labs, GTPL Hathway, Refex Industries, Surya Roshni, Apollo Micro Systems, Visaka Industries, Eris Lifesciences, Shriram City Union, RPP Infra Projects, Dalmia Bharat, Trejhara Solutions, 63 Moons Technologies, SKF India, Kilitch Drugs, Dhunseri Investments, Weizmann, Vishnu Chemicals, Gandhi Special, AGC Networks and Kalyani Investment. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Monday’s most active stocks in value terms
RIL (Rs 5,878.12 crore), Tata Steel (Rs 1,721.93 crore), SBI (Rs 1,619.33 crore), ITC (Rs 1,583.13 crore), ICICI Bank (Rs 1,432.24 crore), M&M (Rs 1,413.27 crore), Divis Labs (Rs 1,297.97 crore), HDFC Bank (Rs 1,180.22 crore), SAIL (Rs 1,096.63 crore) and Bank of Baroda (Rs 1,053.83 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 highest trading turnovers in the day.
Monday’s most active stocks in volume terms
PNB (Shares traded: 24.04 crore), Reliance Power (Shares traded: 13.62 crore), Bank of Baroda (Shares traded: 13.00 crore), SAIL (Shares traded: 8.83 crore), ITC (Shares traded: 7.30 crore), Vodafone Idea (Shares traded: 6.84 crore), YES Bank (Shares traded: 6.56 crore), MPS Infotecnics (Shares traded: 6.36 crore), Infibeam Avenues (Shares traded: 5.49 crore) and Reliance Comm (Shares traded: 5.06 crore) were among the most traded stocks in the session.
Stocks showing buying interest
PNB Housing, Redington, Solar Industries, Nippon Life AMC and ABB India witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Arcotech, DSJ Communications, PBA Infrastructure, Suryoday Small Finance, Visesh Infotecnics and
witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls
Overall, the market breadth remained in favour of the bulls. As many as 281 stocks on the BSE500 index settled the day in the green, while 217 settled the day in the red.
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Nifty is hitting fresh highs on optimism about a faster unlocking of the economy. Will things stabilise for India Inc from Q2 onwards? What are the Nifty tech charts suggesting? Will Nifty Bank gain more after today’s rally? Is betting on auto stocks a good idea?
