Ahead of Market: 12 things that will decide D-Street action on Tuesday

NEW DELHI: The selling pressure continues to mount day by day as the headwinds become stronger. The market is getting affected by rising inflation and bond yields and a declining rupee. Continuous foreign outflow is also hurting investors.

Here's how analysts read the market pulse:-

Chart formations similar to Monday's, after a reasonable decline or near support levels, sometimes act as an upside reversal pattern post-confirmation, said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

Shrikant Chouhan of Kotak Securities said the larger texture of the market is still negative but if the index sustains above 16,200, a pullback formation is likely to continue up to 16,450-165,50 levels.

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

US stocks losses deepen as Nasdaq falls more than 3%
Losses on Wall Street deepened near midday Monday on worries that rising inflation and interest rates will hit consumer spending and slow the economy.

Near 1540 GMT, the Dow Jones Industrial Average was down 1.6 percent at 32,366.70.
The broad-based S&P 500 fell 2.5 percent to 4,020.02, while the tech-rich Nasdaq Composite Index slumped 3.4 percent to 11,736.93.

European stocks hit 2-month lows as travel, tech fall
European shares hit two-month lows on Monday, led by sectors including travel and leisure and technology as a mix of worries over prolonged COVID-19 curbs in China and surging bond yields fuelled selling pressure.
The pan-European STOXX 600 index shed 2.9% to touch its lowest since March 8, with travel and leisure stocks falling 6.0%.

Tech View: Bullish candle
Nifty50 saw a gap-down start, but the index managed to close above the opening level, forming a small bullish candle on the daily scale. The formation, made after a Doji in Friday's trade, made some analysts hopeful, even as the index continued its lower-high low formations. Avoid shorts for now, they suggested.

F&O: Resistance at 17,000
On the call side highest OI was witnessed at 17,000 followed by a 16,500 strike price while on the put side, the highest OI was at 16,000 followed by a 16,200 strike price, providing support to the Nifty index.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Home First Finance, Star Health and DCM Shriram.

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 Godrej Industries, JB Chemicals, M&M, Colgate, Asian Paints and AB Capital. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms
Campus Activewear (Rs 2177 crore), HDFC Bank (Rs 2139 crore), Reliance Industries (Rs 2120 crore), Tata Power (Rs 1397 crore), Adani Power (Rs 1174 crore), Bajaj Finance (Rs 1162 crore) and Infosys (Rs 1070 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
Vodafone Idea (Shares traded: 8 crore), YES Bank (Shares traded: 8 crore), Tata Power (Shares traded: 6 crore), Visesh Info (Shares traded: 6 crore), Campus Activewear (Shares traded: 6 crore) and Power Grid (Shares traded: 4 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Power Grid witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Hindustan Copper, Zomato, PolicyBazaar, CanFin Homes, Nazara Tech, Natco Pharma and Rallis India witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bears
Overall, market breadth favoured losers as 1,006 stocks ended in the green, while 2,468 names settled with cuts.