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

    Synopsis

    Walmart jumped 5.7 per cent and after the nation's largest retailer reported strong results that easily topped analysts' forecasts. Home Depot rose 3.2 per cent after also reporting better-than-expected results. The gains from both companies did much of the heavy lifting for the Dow.

    Ahead of Market: 10 things that will decide D-Street action on WednesdayShutterstock.com
    As softening in inflation data, with robust IIP growth, boosted the market sentiments, the Nifty ended higher for the sixth consecutive day today. Except for Media and PSU Banks, all other sectoral indices ended in the green. Sensex is now getting closer to the 60,000 mark.

    Here's how analysts read the market pulse:

    Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the Nifty is now placed at the edge of the crucial resistance at 17,900-18,000 levels, and a sustainable upside above this hurdle could open the next upside target of around 18,500-18,600 levels in the near term. He said that the immediate support is placed at 17,650 levels.

    Ruchit Jain, Lead Research, 5paisa.com, said Bank Nifty ended with a small Doji candle on the daily chart and around its previous swing high resistance. “So although there’s no confirmation of the reversal yet, one should reduce the quantum of long positions and take some money off the table as highly overbought readings around the resistance zone could lead to some profit booking in the near future,” he said.

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

    Stocks edge mostly lower on Wall Street
    Stocks edged lower in morning trading on Wall Street on Tuesday as investors cautiously reviewed mostly encouraging financial results from major retailers.

    The S&P 500 fell 0.2 per cent as of 10.26 am Eastern. The Dow Jones Industrial Average rose 79 points, or 0.2 per cent, to 33,991 and the Nasdaq fell 0.9 per cent .

    Walmart jumped 5.7 per cent and after the nation's largest retailer reported strong results that easily topped analysts' forecasts. Home Depot rose 3.2 per cent after also reporting better-than-expected results. The gains from both companies did much of the heavy lifting for the Dow.

    European markets nudge higher
    European stocks crept sluggishly higher on Tuesday as investors sought safety in defensive names, while risk aversion likewise lifted the safe haven dollar following weak Chinese and U.S. economic data that stoked fears of a global recession.

    Europe's benchmark STOXX index climbed 0.3% to hit a 10-week high and mark a fifth straight session of gains, led by mining companies as London-listed BHP Group reported strong results.

    Tech View: Indecisive candle on daily scale
    Nifty50 failed to capitalise on a gap-up start and remained range-bound before eventually ending up, forming an indecisive candle on the daily scale. There is no sign of reversal, though.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Indiabulls Real Estate, Fortis Healthcare, Bandhan Bank, PTC India, Jubilant Food and Rajesh Exports.

    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 signalling weakness ahead
    The MACD showed bearish signs on the counters of Apollo Hospital, Cholamandalam Financial, Kotak Bank and Balaji Amines. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

    Most active stocks in value terms
    ICICI Bank (Rs 1,214 crore), HDFC Bank (Rs 943 crore), Maruti Suzuki (Rs 840 crore), Tata Motors (Rs 814 crore), RIL (Rs 806 crore), and Tata Steel (Rs 779 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: 6.9 crore), ONGC (Shares traded: 3.1 crore), Tata Motors (Shares traded: 1.7 crore), ICICI Bank (Shares traded: 1.4 crore), Hindalco (Shares traded: 1.1 crore) and SBI (Shares traded: 1.1 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of Eicher Motors, M&M, SBI Life, Bajaj Auto and ICICI Bank witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

    Stocks seeing selling pressure
    Shares of Asian Energy Services Limited, AYM Syntex Limited, Black Box and Cosmo First 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 winners as 1,925 stocks ended in the green, while 1,632 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)



    (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 .)

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

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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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