According to analysts, Nifty may witness further bounce towards 15,200 and 15,350 levels if it manages to hold the 15,100 level.
iStockMazhar Mohammad of Chartviewindia.in believes Nifty needs to sustain above the bullish gap area present in the 15,043-14,938 zone.
New Delhi: Tracking a weak overnight global trade set-up, Asian stocks were also trading lower on Wednesday morning amid concerns about inflation shadowing the economic recovery from the pandemic. The US dollar touched its lowest level since late February.
At 7 hours (IST), Nifty futures on the Singapore Exchange traded 50 points lower signalling a likely gap-down start for Dalal Street.
Let's have a look at the key factors influencing market mood this morning.
Stocks fall with tech shares Wall Street stocks fell on Tuesday, with technology shares turning lower in late New York trading, while the U.S. dollar touched its lowest level since late February. The Nasdaq also reversed course to end the day lower, while the Dow and S&P 500 added to declines late in the session. The S&P 500 technology index was the biggest drag on the benchmark S&P 500. The Dow Jones Industrial Average fell 0.78%, the S&P 500 lost 0.85%, and the Nasdaq Composite dropped 0.56%.
Asia stocks open lower Asian stocks tracked U.S. declines Wednesday as concern about faster inflation shadows the economic recovery from the pandemic. A dollar gauge was near the lowest level this year. Japanese and Australian shares slid after key U.S. equity benchmarks closed lower and large technology stocks like Amazon.com Inc. and Microsoft Corp. erased gains. AT&T Inc. plunged after the company said it plans to spin off its media operations. Contracts on the S&P 500 and Nasdaq 100 were in the red.
Tech View: Nifty50 eyes 15,300 level Nifty50 on Tuesday broke above a key resistance of 15,100 level on a closing basis. The index formed a small bullish candle on the daily chart. It was the second straight session when the index made a higher high-low formation. Even as the index traded above the moving averages, analysts see a good possibility of it touching the 15,300 level and even all-time highs. “Technically, Nifty50 has seen a breakout of the Falling Channel and sustained above the prior resistance levels on the daily chart, which suggests strength. Moreover, the index has taken good support at the 100-DMA and settled above the ‘Ichimoku Cloud’ formation that indicates continued upside move for the long term. An oscillator Stochastic & MACD also suggested positive crossover on the daily time-frame chart. At present, the index has support at 14,950 level, while on the upside resistance is seen at 15,300 level,” said Sumit Bagaria of Choice Broking.
F&O: Declining volatility supporting bullish sentiments India VIX fell 1.89% from 19.60 to 19.24 level. The fear gauge recorded the lowest close of the last 97 sessions since December 18, 2020. Declining volatility is supporting the bullish market sentiment with breakouts. On the options front, maximum Put Open Interest stood at 14,000 level followed by 14,500 while maximum Call OI was seen at 15,000 followed by 15,500 level. There was Call writing at 15,800 and 15,600 levels, while Put writing was seen at 15,000 and 14,900 levels. Options data suggested the widening of the trading range higher to 14,700-15,300 zones.
Stocks showing bullish bias Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Adani Power, Snowman Logistics, Phillips Carbon, Kotak Mahindra Bank, KEI Industries, Pricol, Au Small Finance Bank, City Union Bank, Crompton Greaves Consumers, Jubilant Foodworks, V-Guard, Mahindra Logistics, ACC, Oberoi Realty, Dilip Buildcon, Sical Logistics, Gulshan Polyols, Britannia Industries, Websol Energy System, Gujarat Apollo Industries, Suprajit Engineering, Hi-Tech Pipes, IFB Industries, Olectra Greentech, Globus Spirits, Solar Industries, South West Pinnacle, Autoline Industries, 3M India and Keynote Financial.
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 Steel Authority, Bharti Airtel, Subex, Tata Motors, Cadila Healthcare, Fortis Healthcare, Jindal Stainless, Kopran, SBI Life Insurance, Tin Plate, Jamna Auto Industries, Panacea Biotec, Alembic, Harrisons Malaya, Radico Khaitan, Tilaknagar Industries, Rossari Biotech, Manaksia Coated Metal, Indoco Remedies, IZMO, Oracle Financial Services, Optiemus Infracom, Chembond Chemical, Cupid, Satia Industries, Hisar Metal Industries, KPR Mill, KSB, Shanthi Gears, Coral India Finance, Asahi Songwon Colors, Bannari Amman Su and Foseco India. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Tuesday's most active stocks in value terms Tata Steel (Rs 2,900.26 crore), Tata Motors (Rs 2,852.32 crore), SBI (Rs 2,730.56 crore), Bharti Airtel (Rs 1,856.36 crore), Bajaj Finance (Rs 1,774.83 crore), HDFC Bank (Rs 1,632.20 crore), Axis Bank (Rs 1,396.59 crore), Hindalco (Rs 1,237.96 crore), ICICI Bank (Rs 1,216.89 crore) and RIL (Rs 1,106.73 crore) were among the most active stocks on Dalal Street on Thursday in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.
Tuesday's most active stocks in volume terms 3i Infotech (Shares traded: 10.72 crore), PNB (Shares traded: 9.14 crore), Tata Motors (Shares traded: 8.61 crore), Federal Bank (Shares traded: 8.45 crore), YES Bank (Shares traded: 8.24 crore), BHEL (Shares traded: 7.61 crore), SBI (Shares traded: 7.09 crore), Vodafone Idea (Shares traded: 6.99 crore), SAIL (Shares traded: 6.67 crore) and Reliance Power (Shares traded: 5.89 crore) were among the most traded stocks in the session.
Stocks showing buying interest Praj Industries, Gland Pharma, Hindustan Zinc, MRPL and Birla Corp. witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Tuesday signalling bullish sentiment.
Stocks seeing selling pressure Best Agrolife, Isgec Heavy Engineering, Sundaram Finance RE and Suvidhaa Infoserve witnessed strong selling pressure in Tuesday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls Overall, the market breadth remained in favour of bulls. As many as 353 stocks on the BSE500 index settled the day in green, while 142 settled the day in red.
Podcast: Will D-Street revisit record highs in coming days? >>> Market continues to see bullish sentiments among investors as both Nifty and Sensex managed to take out crucial resistance levels in style. Will the market manage to hit record highs again? Which stocks or domestic themes can gain the most in the coming days? What are the Nifty Bank charts suggesting?
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