Ahead of the Market: 10 Things That Will Decide Tuesday’s D-Street Action
The NSE Nifty 50 index rose 0.13 per cent to 20,997 and the S&P BSE Sensex rose 0.15 per cent to 69,928.
Here’s how analysts read the market pulse.
“There is strong resistance at 21,000 with call writers actively building positions. A decisive break above 21,000 is needed to resume the uptrend. Until then, we expect the market to consolidate within the broader range,” the senior tech said. said analyst Rupak De. At LKP Securities
Aditya Gaggar, Director, Progressive Shares, said, “The index has been fluctuating in a tight range over the past few days but the positive side is that the support levels have moved upwards. The immediate hurdle is 21,090 and the downside is protected at 20,900.”
That said, let’s take a look at some key indicators that suggest action on Tuesday.
american market
The S&P 500 was quiet on Monday and the Nasdaq was slightly lower ahead of an action-packed week that includes the Federal Reserve’s policy meeting and inflation data. Both indicators will test investor optimism about monetary policy easing next year.
While near-term rate hikes are almost fully priced in for the upcoming meeting, bets on a rate cut next year are percolating, with traders looking at a 39% chance of at least a 25 basis point cut in March 2024. There’s a 71.4% chance in May, according to CME Group’s FedWatch tool. At 10:19 a.m. ET, the Dow Jones Industrial Average rose 56.84 points (0.16%) to 36,304.71, the S&P 500 rose 1.88 points (0.04%) to 4,606.25, and the Nasdaq Composite Index fell 33.78 points (0.23%). did. %, 14,370.19.
european stocks
European shares were little changed at the start of an eventful week as investors braced for U.S. inflation data and interest rate decisions by major global central banks and miners were hit by weak metal prices.
The pan-European STOXX 600 index was flat on Friday after rising to its highest level since February 2022.
Tech View: High wave candle pattern
On Monday, Nifty hit a new high, closing 28 points higher at the 21,000 level, just below the resistance level. The index traded in the 97-point range throughout the day, forming a high-wave candle pattern.
The overall positive chart pattern of Nifty remains intact. Nifty is likely to continue its upward trend without any significant decline in the near term. A decisive move above 21K could open the next upside target of 21,550. Immediate support lies at the 20,850 level, said Nagaraj Shetti of HDFC Securities.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on the counters of India’s Tube Investments, IRB Infrastructure Developers, ITI, Coforge, HCL Tech and Alok Industries.
MACD is known to indicate a trend reversal in a traded security or index. When the MACD crosses above the signal line, it sends a bullish signal, indicating that the price of the security may rise and vice versa.
Stocks predict weakness ahead
MACD showed signs of weakness in counters Godawari Power, MCX India, Jyothy Labs, Rainbow Children’s, Praj Industries and Coal India. A bearish crossover in the MACD of this counter indicates that it has just begun its downward journey.
Most Active Stocks by Value
HDFC Bank (Rs 1,916 crore), Adani Enterprises (Rs 1,452 crore), ICICI Bank (Rs 1,189 crore), Dr Reddy’s Labs (Rs 1,033 crore), RIL (Rs 869 crore), Adani Ports (Rs 814 crore) and Axis Bank. (Rs 776 crore) was one of the most active stocks on NSE in terms of value. The higher activity of a counter in terms of value can help identify which counters have the highest turnover for the day.
Most active stocks by trading volume
Tata Steel (traded shares: 2.4 billion), Power Grid (traded shares: 1.9 billion), BPCL (traded shares: 1.3 billion), ICICI Bank (traded shares: 1.1 billion), SBI (traded shares: 1.1 billion), HDFC Bank (Shares traded: 1.1 crore) and Coal India (Shares traded: 1.1 crore) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Shares of UltraTech Cement, LTIMindtree, HCL Tech and ICICI Bank touched new 52-week highs, showing strong buying interest from market participants, indicating bullish sentiment.
Stocks under selling pressure
No major stock hit a new 52-week low on Monday.
Sentiment Meter Favors Bulls
Overall, market breadth favored the bears with 2,372 stocks closing in the green and 1,499 names in the red.
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(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
