Ahead of Market: 10 things that will decide D-St action on Tuesday

The domestic equity market outperformed their Asian peers and also shrugged off the weak European market sentiment, supported by acceleration in service PMI data for the month of August. Given the subdued sentiments abroad, experts say, Nifty may find it difficult to rise sharply from hereon.

Here's how analysts read the market pulse:

Ruchit Jain, Lead Research, 5paisa.com, said the intraday supports in Nifty for the coming session are placed around 17,576 and 17,485, while resistances will be seen around 17,720 and 17,772.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said Nifty is likely to continue trading sideways in the absence of any major events domestically. “Globally, nine central banks would meet this week for their policy announcement, while the decsion on UK's Prime Minister could also drive the global markets in the near term.”

That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:

US market
The US market will remain closed on account of Labour Day today.

European stocks fall
European stock indexes fell on Monday, the euro dropped below 99 cents for the first time in twenty years and European gas prices surged after Russia said its main gas supply pipeline to Europe would stay shut.

Gas deliveries had been due to resume on Saturday, but Russia scrapped that deadline on Friday and did not give a new timeframe for re-opening. The news stoked fears of a recession in Europe, with businesses and households hurt by sky-high energy prices.

At 1414 GMT, the MSCI world equity index, which tracks shares in 47 countries, was down 0.4% on the day. Europe's STOXX 600 was down 0.8%, having recovered slightly after approaching a seven-week low earlier in the session.

London's FTSE 100 was 0.1% lower and Germany's DAX was down 2.3% on the day.

Tech View: Buy on dips market
Nifty50 formed a bullish candle on the daily chart and stayed in a broader range. Analysts said the index faces resistance at 17,780-800 a breach of which can attract buying. They see immediate support at 17,500. It's a buy-on dips market, they said.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Vakrangee, Exide Industries, Cera Sanitary, Engineers India, Amara Raja Batteries and Network18 Media.

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 GSK Pharma, Adani Transmission, Gujarat Pipavav, Tata Steel Long Products, Sumitomo Chemical and Gujarat Alkalie.

A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms
RIL (Rs 1,340 crore), HDFC Bank (Rs 906 crore), ICICI Bank (Rs 772 crore), Kotak Bank (Rs 738 crore), TCS (Rs 673 crore), and Bajaj Finserv (Rs 642 crore) were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify the counters with the highest trading turnovers in the day.

Most active stocks in volume terms
Tata Steel (Shares traded: 4 crore), ITC (Shares traded: 1.7 crore), NTPC (Shares traded: 1.5 crore), ONGC (Shares traded: 1.5 crore), Hindalco (Shares traded: 1.5 crore) and Power Grid (Shares traded: 1.4 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Tube Investments, Triveni Turbine, Karur Vysya Bank, Schaeffler India, Welspun Corp and Solar India witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of Biocon, Alembic Pharma and Sanofi India were among those that witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured losers as 2,191 stocks ended in the green, while 1,382 names settled with cuts.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)