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

After showing a sustainable up move in the last three sessions, the headline index Nifty ended on a flat note on Monday amid weak global cues. Apart from IT, all other sectors ended in the green. Metals, oil & gas, auto and PSU banks were top sectoral gainers.

Here's how analysts read the market pulse:

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the short term uptrend status of Nifty remains intact, and the market is taking a temporary halt before showing further up move in the near term. “Hence, the current range movement within 16,100-16,250 levels is likely to extend for the next session. A sustainable move above 16,300 could be viewed as strengthening of upside momentum,” he said.

Rupak De, Senior Technical Analyst at LKP Securities, said the benchmark Nifty remained sideways during the session. “On the daily timeframe, the index has sustained above its near-term moving average. The momentum oscillator RSI maintains its bullish crossover. The short-term trend is likely to remain positive as long as it holds above 16,000. On the higher end, resistance is visible at 16,300."

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

US stocks retreat ahead of earnings season
Stocks fell in morning trading on Wall Street Monday as markets turned cautious ahead of earnings reports from big U.S. companies and updates on how badly inflation is hitting American businesses and households.

The S&P 500 fell 1.3% as of 10:21 a.m. Eastern. The Dow Jones Industrial Average fell 203 points, or 0.7%, to 31,134 and the Nasdaq fell 2.2%.

Twitter fell 6.7% after Elon Musk announced late Friday that he would abandon his $44 billion offer to buy the social media company, while Twitter said it would sue the billionaire to enforce his commitment to the purchase.

European shares
European markets fell as the shutdown of a major gas pipeline from Russia to Germany for annual maintenance brought concern Russia might not resume the flow of gas as scheduled.

The pan-European Stoxx 600 index opened 1.03% lower with all sectors in negative territory apart from healthcare stocks.

Tech View: Small bullish candle on daily chart
Nifty50 ended up forming a small bullish candle on the daily chart, with small wicks. Analysts said the momentum stays positive as long as the 50-pack index holds above the 16,000-16,100 range. Upside hurdle is at around 16,300 level, they said.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Blue Star, Borosil Renewables, Aegis Logistics, Cyient, Shilpa Medicare and Suven Pharma.

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 GMM Pfaudler, Gland Pharma, Birlasoft and TCS. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks in value terms
TCS (Rs 2,183 crore), RIL (Rs 1,534 crore), Tata Steel (Rs 1,364 crore), Bharti Airtel (Rs 1,240 crore), Axis Bank (Rs 1,004 crore), and ICICI Bank (Rs 951 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
ONGC (Shares traded: 3.2 crore), Bharti Airtel (Shares traded: 1.9 crore), NTPC (Shares traded: 1.7 crore), Tata Steel (Shares traded: 1.5 crore), Axis Bank (Shares traded: 1.5 crore) and Hindalco (Shares traded: 1.4 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Adani Gas, Gujarat Fluorochem, Sumitomo Chemical, Eicher Motors, Phoenix Mills, Tube Investments and Coromandel International witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of HCL Tech and Gland Pharma 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 2,055 stocks ended in the green, while 1,377 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)