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

    Synopsis

    “We’re seeing consolidation on the expected lines, which is healthy after the recent surge. We expect the resumption of the trend soon, meanwhile focus on sectors that are attracting buying interest on every dip and select the stocks accordingly,” Ajit Mishra, VP - Research at Religare Broking, said.

    Ahead of Market: 10 things that will decide D-Street action on TuesdayETMarkets.com
    Equity benchmark indices ended on a flat note on Monday, recording its second straight day of decline after an 8-day rally. In a volatile trade, the 30-share BSE benchmark fell 34 points to settle at 62,834, while its broader peer Nifty 50 ended at 18,700 level.

    Here's how analysts read the market pulse:
    “Nifty remained sideward during the session as the benchmark index hovered within 140 points range. On the daily chart, a small-bodied candle with a long lower shadow is formed. The lacklustre sentiment is likely to continue over the short term. On the lower end, 17,550-18,500 is going to act as a very crucial support, while resistance is at 18,800,” Rupak De, Senior Technical Analyst at LKP Securities, said.

    “We’re seeing consolidation on the expected lines, which is healthy after the recent surge. We expect the resumption of the trend soon, meanwhile focus on sectors that are attracting buying interest on every dip and select the stocks accordingly,” Ajit Mishra, VP - Research at Religare Broking, said.

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

    US market
    Wall Street's main indexes fell on Monday after better-than expected service-sector activity added to jitters that the U.S. Federal Reserve might continue on its aggressive policy tightening path despite fears of a recession next year.

    Data showed U.S. services industry activity unexpectedly picked up in November, with employment rebounding, offering more evidence of underlying momentum in the economy. At 10:33 a.m. ET, the Dow Jones Industrial Average was down 239.71 points, or 0.70%, at 34,190.17, the S&P 500 was down 39.93 points, or 0.98%, at 4,031.77, and the Nasdaq Composite was down 128.11 points, or 1.12%, at 11,333.39.

    All major Wall Street indexes notched a second straight week of gains last week, with the S&P 500 rising 1.13%, the Dow gaining 0.24% and the Nasdaq climbing 2.1%. The S&P index recorded four new 52-week highs and one new low, while the Nasdaq recorded 54 new highs and 39 new lows.

    European shares
    European shares slipped on Monday in cautious trading ahead of data on business activity amid concerns over an economic downturn in the bloc.

    China relaxing COVID-19 curbs following protests against the country's strict "zero-COVID" policy as well as easing worries about interest rate hikes had helped shares log gains for a seventh straight week on Friday.

    The region-wide STOXX 600 was down 0.2% at 8:06 a.m. GMT on Monday, with technology and industrial stocks the biggest drags on the index.

    Final services Purchasing Managers' Index (PMI) numbers expected at 9 a.m. GMT are likely to show economic activity in the euro zone continued to slow in November.

    Tech View: Nifty formed hammer-like mildly bullish pattern
    After ending 5 points higher in a range-bound day, headline equity index Nifty today formed a hammer-like mildly bullish pattern on the daily chart. The pattern indicates that declines are being bought.

    Analysts said such a candle pattern after a reasonable decline calls for caution for short positions and more often results in upside bounces from the lows.

    The index has to hold above 18,600 zone for an up move towards 18,881-19,000 zone, whereas supports are placed at 18,550 and 18,442 zones, said Chandan Taparia of Motilal Oswal.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Finolex Industries, City Union Bank, JSW Energy, Avanti Feeds, Century Ply and Sequent Scientific among others.

    The MACD is known for signaling 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 signaling weakness ahead
    The MACD showed bearish signs on the counters of IIFL Finance, SCI, Central Bank, Shriram Transport Finance, JBM Auto and Endurance Technologies, among others. 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 1,844 crore), Tata Steel (Rs 1,107 crore), ICICI Bank (Rs 1,024 crore), HDFC Bank (Rs 930 crore), Adani Enterprises (Rs 927 crore), HDFC (Rs 869 crore) and SBI (Rs 711 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 highest trading turnovers in the day.

    Most active stocks in volume terms
    Tata Steel (Shares traded: 9.6 crore), ONGC (Shares traded: 1.8 crore), Hindalco (Shares traded: 1.5 crore), Tata Motors (Shares traded: 1.3 crore), Power Grid (Shares traded: 1.2 crore), SBI (Shares traded: 1.2 crore) and ICICI Bank (Shares traded: 1.1 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of JK Lakshmi Cement, M&M Financial, Kalyan Jewellers, SJVN, Aditya Birla Capital, Varun Beverages and IDFC First Bank witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

    Stocks seeing selling pressure
    No shares hit their 52-week lows on Monday, which signals bearish sentiment on the counters.

    Sentiment meter favours bulls
    Overall, market breadth favoured bulls as 2,043 stocks ended in the green, while 1,567 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)



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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