The Economic Times daily newspaper is available online now.

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

    Synopsis

    Wall Street's main indexes fell on Monday amid worries about protests in major Chinese cities against strict COVID-19 policies, although gains in Amazon helped limit losses as Cyber Monday sales were set for a record.

    Ahead of Market: 10 things that will decide D-Street action on TuesdayAgencies
    Indian equity markets rose for the fifth session in a row on Monday, with both the benchmark indices touching record highs, led by gains in oil marketing companies as crude prices slid amid protests over harsh Covid restrictions in China. The BSE Sensex ended 211 points higher at 62,505, while its broader peer Nifty 50 ended above the 18,550 level.

    Here's how analysts read the market pulse:
    “Structurally, the index is forming an extension on the upside. Thus the zone of 18,400-18,360 will continue to act as a crucial support area. As long as the index stays above this zone, it can stay on the upward trajectory from a short-term perspective. Subsequent targets on the upside will be 18,700 & 19,000,” said Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan by BNP Paribas said.

    “Nifty as per weekly chart is in a sharp uptrend movement and there is no sign of any tiredness/reversal observed at the highs. Having registered a new all-time high, the next upside target to be watched for Nifty is at 0.786% fibonacci extension at 18,955 levels (taken from the June bottom, Sept top and Sept higher bottom-as per weekly chart). This could be achieved in the next 1-2 weeks. Immediate support is placed at 18350 levels” Nagaraj Shetti, Technical Research Analyst at HDFC Securities, 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 amid worries about protests in major Chinese cities against strict COVID-19 policies, although gains in Amazon helped limit losses as Cyber Monday sales were set for a record.

    The biggest drag on the benchmark S&P 500 index, however, were Apple Inc shares, which fell 1.5% after a report that the company would see a further shortfall in production due to unrest at the world's biggest iPhone factory in China. The S&P 500 energy index fell 2.5% and led declines among main sectors, as oil prices dropped close to their lowest this year after news of China protests. At 10:01 am ET, the Dow Jones Industrial Average was down 160.29 points, or 0.47%, at 34,186.74, the S&P 500 was down 24.31 points, or 0.60%, at 4,001.81, and the Nasdaq Composite was down 39.21 points, or 0.35%, at 11,187.15. All three indexes ended the Thanksgiving week with gains, led by the Dow, which rose 1.78%.

    European shares
    European shares fell from three-month highs on Monday, led by declines in energy, retail, and mining stocks, as widespread protests in China against strict COVID-19 curbs sparked a wave of selling in global markets.

    The pan-European STOXX 600 index slipped 0.5% by 0802 GMT, following sharp declines in Asian stocks. Brenntag SE fell 7.6% after the German chemicals distributor said it held preliminary discussions for a potential acquisition with U.S. rival Univar Solutions Inc.

    Tech View: Nifty forms long bull candle
    Signalling upside continuation pattern, the headline index Nifty today formed a long bullish candlestick pattern on the daily charts. “Now, it has to hold above 18,500 zones, for an up move towards 18,650 then 18,881 zones whereas supports are placed at 18,350 and 18,250 zones,” said Chandan Taparia of Motilal Oswal.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup in the counters of Sonata Software, Triveni Engineering & Industries, Suzlon Energy, Indiabulls Housing Finance, Nippon Life AMC and Hikal 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 in the counters of CCL Products, IIFL Wealth Management, Shree Cements, Raymond, Kotak Bank and Asahi India Glass, among others.

    Bearish crossover on the MACD in these counters indicated that they have just begun their downward journey.

    Most active stocks in value terms
    RIL (Rs 3,908 crore), HDFC Bank (Rs 1,289 crore), ICICI Bank (Rs 879 crore), TCS (Rs 745 crore), Axis Bank (Rs 708 crore), Infosys (Rs 626 crore) and HDFC (Rs 571 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: 3.4 crore), RIL (Shares traded: 1.5 crore), BPCL (Shares traded: 1.3 crore), Tata Motors (Shares traded: 1.1 crore), ITC (Shares traded: 99 lakh), ICICI Bank (Shares traded: 93 lakh) and ONGC (Shares traded: 89 lakh) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of Rail Vikas Nigam, Apollo Tyres, Ceat, Indian Railway Finance Corporation, Engineers India, GE Shipping and Rashtriya Chemicals & Fertilizers witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

    Stocks seeing selling pressure
    Shares of SIS India witnessed strong selling pressure and hit their 52-week low, signaling bearish sentiment on the counter.

    Sentiment meter favours bulls
    Overall, market breadth favoured bulls as 2,092 stocks ended in the green, while 1,511 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 .)

    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


    (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
    The Economic Times

    Stories you might be interested in