Ahead of the market: 10 things that will determine D-Street action on Wednesday
Here’s how analysts read the market pulse.
“The broader uptrend in the market remains intact and Nifty could soon see the 22,000 level once it breaches the 21,800 level. However, intermittent volatility cannot be ruled out as the results season begins,” said Director Sheersham Gupta. Senior Technical Analyst at Rupeezy.
“The overall sentiment is strengthening as market optimism over the possibility of easing US inflation has fueled expectations of a near-term interest rate cut. However, mixed signals from Asian markets and high valuation concerns are leading to intermediate profit booking,” Vinod Nair said. . Head of Research, Geojit Financial Services.
That said, let’s take a look at some key indicators that suggest action on Wednesday.
american market
Wall Street’s main indexes fell on Tuesday, under pressure from rising Treasury yields and as traders scaled back expectations for an early start to interest rate cuts ahead of a key inflation report due later this week.
Megacap stocks Microsoft, Apple, Tesla and Amazon.com fell between 0.8% and 2%, while short-term and long-term U.S. Treasury bonds yielded more than 4%.
Nvidia also fell 0.7% after hitting an all-time high with the release of new artificial intelligence components.
At 9:37 a.m. ET, the Dow Jones Industrial Average was down 232.22 points (0.62%) at 37,450.79, the S&P 500 Index was down 25.67 points (0.54%) at 4,737.87, and the Nasdaq Composite Index was down 96.80 points (0.65%). It has fallen. %, 14,746.97.
european stocks
European stocks fell on Tuesday, dragged by losses in technology and financial stocks, and investors look forward to more economic data from the European Central Bank to assess its monetary policy this year.
The pan-European STOXX 600 index was down 0.2% as of 0930 GMT, with technology and bank stocks down 0.9% and 0.8%, respectively.
Feeling the pressure of this atmosphere, Germany’s industrial production in November unexpectedly decreased from the previous month, recording a decline for six consecutive months.
Germany’s DAX 40 index fell 0.3%, and the yield on Germany’s 10-year government bond rose slightly to 2.177%.
Tech View: Integration Phase
“Selling pressure is evident within the 21,700-21,750 area, with 21,500 standing out as an important support level for Nifty. Any significant directional move in Nifty depends on two possibilities – a close above 21,750 to regain bullish momentum or below. Experiencing a close. “21,500 could trigger further selling pressure and potentially push the Nifty index towards the 21,200 level,” said Kunal Shah, senior technical and derivatives analyst at LKP Securities.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on counters including Motilal Oswal, Poonawalla Fincorp, CreditAccess Grameen, Policybazaar and Krishna Institute.
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 saw bearish signals on counters GNFC, RVNL, Concor, ITI, Berger Paints and Laurus Labs. 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 2,103 crore), Adani Ports (Rs 1,771 crore), Bajaj Auto (Rs 1,523 crore), ICICI Bank (Rs 1,443 crore), Tata Motors (Rs 1032 crore), Bajaj Finance (Rs 967 crore) and Adani companies. (Rs 874 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 (Shares traded: KRW 3 billion), Adani Ports (Shares traded: KRW 1.4 billion), ICICI Bank (Shares traded: KRW 1.4 billion), SBI (Shares traded: KRW 1.3 billion), Tata Motors (Shares traded: KRW 1.4 billion) 1.2 billion), HDFC Bank (shares traded: 1.2 billion) and NTPC (shares traded: 1.2 billion) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks of Adani Ports, Apollo Hospital, Bajaj Auto, L&T, Bharti Airtel, Sun Pharma, Tata Motors, etc. touched their 52-week highs, showing strong buying interest from market participants, indicating bullish sentiment.
Stocks under selling pressure
There were no stocks hitting new 52-week lows on Monday.
Sentiment Meter Favors Bulls
Overall, market breadth favored strength with 2,241 stocks ending in the green and 1,606 stocks ending 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.)
