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

Amid strong buying in IT, metals and bank stocks, Sensex closed above the 54,000 mark while the Nifty advanced 229 points to settle near the 16,280 level. FMCG and pharma stocks were the only two sectoral losers.

Here's how analysts read the market pulse:

Prashanth Tapse, Vice President (Research), Mehta Equities, said the two positive catalysts adding strength to the positive mood were China’s readiness for more stimulus and easing fears of hawkish Fed rate hikes. “Judging by today’s positive close, the simple strategy on the benchmark Nifty is to establish long positions and remain a buyer as long as the index trades above its biggest support at 16,001 mark,” he said.

Deepak Jasani, Head of Retail Research, HDFC Securities, said the 16,487-16,514 band is the next resistance for Nifty while the support has shifted to 16,070-16,140. “Positive global sentiments keep buoying the Nifty, and hence one will have to watch them closely.”

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

US stocks boosted by Goldman results, Boeing order
Wall Street stocks rose early Monday, extending a rally that started last week as markets digested solid earnings from Goldman Sachs and a big new Boeing plane order.

After a pair of bruising inflation readings last week, US stocks finished the week on an upbeat note, rising Friday after good retail sales results.

About 20 minutes into trading, the Dow Jones Industrial Average was up 0.9 percent at 31,556.91. The broad-based S&P 500 advanced 0.9 percent to 3,899.33, while the tech-rich Nasdaq Composite Index gained 1.5 percent to 11,618.13.

European shares trim gains
European stocks pared some session gains on Monday, after a report said Russia's Gazprom had declared force majeure on gas supplies to Europe to at least one major customer.

The pan-European STOXX 600 index, which had risen as much as 1.5% to hit three-week peaks earlier in the session, cut gains to 1% by 1308 GMT. Germany's DAX moved closer to session lows, last up 0.8%.

Tech View: Nifty bulls eying 16,500
Nifty50 built on the momentum after a gap-up start to eventually close above its recent swing high of 16,275.50, suggesting the bulls were back in the driving seat. Analysts said the index could be in for some more upside and a level around 16,500 looks a possibility.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Jubilant Ingrevia, Cholamandalam Investment Finance, Welspun India, Infosys, Indo Count and Persistent.

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 Suprajit Engineering, Redington, Fine Organic and HDFC Bank.

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

Most active stocks in value terms
RIL (Rs 1,685 crore), HDFC Bank (Rs 1,370 crore), TCS (Rs 978 crore), Tata Motors (Rs 951 crore), Infosys (Rs 864 crore), and Axis Bank (Rs 839 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 Motors (Shares traded: 2.1 crore), ONGC (Shares traded: 2.1 crore), Hindalco (Shares traded: 1.4 crore), Axis Bank (Shares traded: 1.2 crore), Power Grid (Shares traded: 1.1 crore) and ITC (Shares traded: 1.1 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Schaeffler India, BEL, Adani Transmission, Gujarat Fluorochem, Cummins India, Coromandel International and Blue Dart witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of Policy Bazaar witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured winners as 2,302 stocks ended in the green, while 1,152 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)