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

    Synopsis

    “The short-term trend of Nifty continues to be negative. Having reached crucial lower support of 15,700 levels and a formation of an unfilled weekly opening downside gap, there is a possibility of an upside bounce from the lows of around 15,500-15,400 levels in the next 1-2 sessions,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

    Ahead of MarketAgencies
    Overall, market breadth favoured losers as 2,901 stocks ended in the green, while 600 names settled with cuts.
    NEW DELHI: Domestic benchmark equity indices ended deep in the red on Monday amid twin global headwinds of high inflation and increasing interest rates. Market analysts said traders should remain cautious and avoid leveraged long positions for now.

    Here's how analysts read the market pulse:

    “The short-term trend of Nifty continues to be negative. Having reached crucial lower support of 15,700 levels and a formation of an unfilled weekly opening downside gap, there is a possibility of an upside bounce from the lows of around 15,500-15,400 levels in the next 1-2 sessions,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

    Ajit Mishra, VP - Research, Religare Broking, recommends using rebound to create shorts in the index until signs of reversal are seen. “Stocks, on the other hand, are offering opportunities on both sides, so plan accordingly,” he said.

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

    S&P 500 trades in bear-market territory
    Wall Street is tumbling even more Monday, sending the S&P 500 down more than 20% from its record, amid fears that a recession is more likely given how unshakeable inflation has become.

    The S&P 500 was 3.8% lower in the first trading after investors had the weekend to reflect about a stunning report that showed inflation is getting worse, not better as some had hoped. The technology-focused Nasdaq Index, which entered bear market territory in March, dropped 4.5%. Dow Jones declined 2.8%, or nearly 900 points.

    European stocks slump to lowest since March 2021
    European equities tumbled to the lowest level since March 2021 as investors worried that surging inflation will fuel more aggressive monetary tightening, increasing risks of a recession.

    The Stoxx 600 dropped 2.4% by the close in London as travel and leisure, automakers and technology sectors led the declines.

    Tech View: Bearish candle
    Nifty50 formed a bearish candle on the daily chart, with a long lower wick, suggesting recovery from an intraday low of 15,684. The index has been seeing strong support near 15,670 since March and analysts see it as a make-or-break level. A breach of it may bring downside towards 15,500-400, they warned.

    F&O: Trading range between 16,400 to 16,800 zones
    On the Option front, Maximum Call OI was at 175,00-17000 while maximum Put OI was at 16,000. Call writing was seen at 16,700 strikes, while Put writing was seen at 16,500-16,400. Options data suggests an immediate range between 16,400 to 16,800 zones.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Minda Industries, Pidilite and Sheela Foam.

    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 Fine Organic, United Breweries, Godrej Agrovet, Allcargo Logistics, IIFL Wealth Mgmt and Cipla. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

    Most active stocks in value terms
    Reliance Industries (Rs 2,151.96 crore), ICICI Bank (Rs 1,144.13 crore), Bajaj Finance (Rs 1,042.16 crore), Infosys (Rs 996.60 crore), TCS (Rs 979.78 crore), and Tata Steel (Rs 821.49 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
    NTPC (Shares traded: 1.92 crore), Tata Motors (Shares traded: 1.7 crore), ICICI Bank (Shares traded: 1.6 crore), SBI (Shares traded: 1.3 crore), Hindalco (Shares traded: 1.2 crore) and ONGC (Shares traded: 1.2 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of Mahindra Lifespace witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

    Stocks seeing selling pressure
    Bajaj Finserv, Bajaj Finance, Tata Steel, UltraTech Cement, Grasim and Shree Cements 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 600 stocks ended in the green, while 2,901 names settled with cuts.



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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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