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

NEW DELHI: Tracking weak global cues, the domestic benchmark indices ended the session lower for the second straight day. The Nifty fell 74 points to end at 17,241, while the Sensex lost 200 points to close at 57,991. Sectorally, selling pressure was witnessed across all sectors barring the IT pack.

Here's how analysts read the market pulse:

Om Mehra, Technical Associate-Choice Broking, said: “The Indian market was knocked down on Monday factoring previous week's sharp sell-off in the US market and after China’s Golden week. However, during the first half bulls managed to lift the Index but could not sustain at higher zones and drifted lower.”

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said: "After showing consolidation movement with weak bias on Friday, Nifty slipped into weakness with high volatility on Monday and closed the day lower by 73 points.

The present swing low of 17,064 could be considered a new higher bottom of a smaller positive sequence. This could result in Nifty revisiting the crucial overhead resistance of around 17,450 levels, as per the concept of change in polarity.”

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

Stocks edge lower on Wall Street
Stocks edged lower in afternoon trading on Wall Street Monday ahead of the latest round of corporate earnings reports and a busy week of inflation updates.

The S&P 500 fell 0.6% as of 12:01 p.m. Eastern. The Dow Jones Industrial Average fell 59 points, or 0.2%, to 29,243 and the Nasdaq fell 0.9%. Major indexes are coming off a volatile week where they notched out gains because of an early two-day rally that shielded stocks from several weak days. U.S. bond trading was closed. Technology stocks were the biggest weights on the market.

European markets close lower
European shares edged lower on Monday as investors stayed cautious ahead of major corporate earnings this week, with nerves around rising interest rates and escalating geopolitical tensions also weighing on sentiment.

The region-wide STOXX 600 index was briefly in positive territory before closing down 0.4% and extending losses to a fourth straight session.

Tech View: Long bullish candle
Nifty formed a long bullish candle on the daily chart but analysts said the headline index is making lower highs and lower lows for the last two sessions.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed Jaiprakash Power, Yes Bank, IDBI Bank, India Cements and GAIL.

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 Varun Beverages, Reliance Naval, IIFL Finance, Transformers and Rectifiers and SAL Steel.

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

Most active stocks in value terms
Tata Motors (Rs 86.52 crore), Mazagon Dock (Rs 72.77 crore), TCS (Rs 70.45 crore), EKI Energy Services (Rs 68.54 crore), and ICICI Bank(Rs 57.52 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
JP Power (Shares traded: 4.95 crore), Suzlon Energy (Shares traded: 2.94 crore), Vodafone Idea (Shares traded: 2.66 crore), Zomato (Shares traded: 0.72 crore) and Shree Renuka Sugars (Shares traded: 5.48 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Tejas Networks, Cochin Shipyard, Phoenix Mills and Mazagon Dock among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of Piramal Enterprises, Motilal Oswal and Tamilnad Mercantile witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bears
Overall, market breadth favoured losers as 2,207 stocks ended in the red, while 1,360 names advanced.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)