Market Outlook: Ahead of the Market: 10 Things That Will Decide Your Stock Trading Tuesday
The Nifty 50 index closed 0.4 per cent lower at 22122.05, while the 30-stock S&P BSE Sensex closed 0.5 per cent lower at 72790.13.
Here’s how analysts read the market pulse.
“Despite the overall bullish sentiment, negative divergences in key momentum indicators suggest caution regarding particularly aggressive long positions, especially overnight positions. Traders are advised to monitor these levels closely and adjust their trading strategies accordingly,” said Rajesh Bhosale, technical analyst at Angel One.
american market
U.S. stocks were higher in early trading on Monday, with investors bracing for a busy week of data and looking for more catalysts to push the market higher following Nvidia’s gains last week.
european stocks
European stocks opened the new week cautiously lower on Monday as investors awaited the release of inflation data. The euro zone is due to release inflation data on Friday ahead of the European Central Bank (ECB) meeting on March 7. The pan-European STOXX 600 index fell 0.3%, while benchmark indices in France and the UK fell. It fell about 0.4%. technology perspective
“The positive chart patterns, including higher highs and higher lows, have remained intact and the current weakness may coincide with the formation of new highs,” said Nagaraj Shetti, senior technical analyst at HDFC Securities.
Therefore, Nifty is expected to find strong support around 21900-21850 levels. On the upside, the 22200-22300 area is likely to be a strong drag on the market going forward, Shetti said.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on the counters of Sobha Ltd, Bharat Dynamics, Mahindra Holidays, Adani Total Gas, KPR Mill 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 KSB Ltd, IndiaMART InterMESH, Bank of Baroda, NTPC, Bayer Cropscience and Team Lease Services. A bearish crossover in the MACD of this counter indicates that it has just begun its downward journey.
Most Active Stocks by Value
Jio Financial Services (Rs 3602.89 crore), HDFC Bank (Rs 1676.06 crore), L&T (Rs. 1428.27 crore), Alkem Labs (Rs. 1260.59 crore), Indus Towers (Rs. 1178.26 crore), Adani Gas (Rs. 1149.35 crore) ), RIL (Rs. 1117.32 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
Vodafone Idea (Trading shares: 64.36 billion), YES Bank (Trading shares: 27.11 billion), GTL Infra (Trading shares: 19.46 billion), Jio Financial Services (Trading shares: 10.74 billion), NHPC (traded shares: 9.17 billion), Infibeam Avenues (traded shares: $9.08 billion)
It is the most traded stock on NSE.
Stocks showing interest in buying
Shares of Power Grid Corp, Adani Ports, Adani Enterprises, SBI Life Insurance and M&M are among the stocks that saw strong buying interest from market participants as they touched new 52-week highs, indicating bullish sentiment.
Stocks under selling pressure
Shares of Orient Refractories, Polyplex Corporation. And Sharda Cropchem hit a 52-week low, indicating bearish sentiment on the counter.
Sentiment Meter Favors Bulls
Overall, market breadth favored weakness with 2,312 stocks ending in the red and 1,665 stocks ending in the green.
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
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