Ahead of the Market: 10 Things That Will Decide Tuesday’s D-Street Action
Here’s how analysts read the market pulse.
“Despite a strong recovery from the 21,000 level, a breach of the 21,500-21,600 supply zone is essential to resume the bullish momentum. Currently, the 20,900-21,600 range defines the market environment,” said Santosh Meena, Head of Research at Swastika. Invest Mart.
“We are seeing volatility across sectors, so traders need to pay close attention to stock selection and overnight risk management, and we believe it is prudent to stick to index majors over mid-cap and small-cap counters,” said SVP of Technical Research. Ajit Mishra said: , religious mediation.
That said, let’s take a look at some key indicators that suggest action on Tuesday.
american market
Wall Street snapped an eight-week winning streak with a quiet finish Friday following reports that inflation was falling and the economy was potentially on the rise.
The S&P 500 rose 0.2%, remaining less than 1% below its record level set nearly two years ago. The Dow Jones Industrial Average fell 18 points, or less than 0.1%, and the Nasdaq Composite rose 0.2%.european stocks
European stocks closed with a whimper on Friday as weaker-than-expected U.S. inflation data offset losses in sports apparel makers and China-exposed stocks ahead of the Christmas holiday weekend.
The pan-European STOXX 600 index rose 0.1%, marking its sixth consecutive week of gains. This is a streak of gains last recorded in December 2022.
Tech View: Bullish Piercing Candlestick Pattern
Nifty needs to cross the recent high of 21,593 to reverse its current downtrend. The critical support for observing the re-emergence of weakness is 21,232.
Kunal Shah of LKP Securities said, “The lowest support for the index is located at 21,200, providing a buying opportunity on any dip towards this level. A hold above 21,300 could pave the way for further upward momentum targeting the 21,500 level. “He said.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on the counters of Concord Biotech, Piramal Pharma, GAIL, Apar Industries, Patanjali Foods and others.
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 across counters including Karur Vysya Bank, Brightcom Group, Adani Green, Rainbow Children’s Medicare, VIP Industries and Ingersoll-Rand. A bearish crossover appears on the MACD of this counter, indicating that the downtrend has just begun.
Most Active Stocks by Value
HDFC Bank (Rs 4,070 crore), RIL (Rs 2,117 crore), ICICI Bank (Rs 2,087 crore), Axis Bank (Rs 1,162 crore), Wipro (Rs 1,049 crore), Infosys (Rs 1,041 crore) and SBI (Rs 636 crore). crore) has been one of the most active stocks on the 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 (shares traded: 3.7 billion), HDFC Bank (shares traded: 2.4 billion), Wipro (shares traded: 2.3 billion), ICICI Bank (shares traded: 200 million), NTPC (shares traded: 1.5 billion), SBI ( Shares traded: $1.4 billion) and Coal India (stocks traded: $1.3 billion) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks such as Concord Biotech, Piramal Pharma, JB Chemicals, GAIL, Castrol India, Wipro, Shyam Metalics, etc. saw strong buying interest from market participants as they touched new 52-week highs, indicating bullish sentiment.
Stocks under selling pressure
There were no stocks hitting new 52-week lows on Friday.
Sentiment Meter Favors Bulls
Overall, market breadth favored the bulls. 2,368 stocks closed in the green and 1,396 stocks closed in the red.
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
