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

Indian shares declined ahead of domestic retail inflation data due later on Monday, while an ongoing uncertainty and spill-over from the Adani Group's market rout continued to be an overhang. The Nifty50 closed 0.48% lower at 17,770.90, while the S&P BSE Sensex fell 0.41% to 60,431.84.

Here's how analysts read the market pulse:

“With the third quarter earnings season ending this week, markets traded weak throughout the day ahead of the inflation print expected today. PSU Banks & IT stocks dragged Indices as traders booked profits on a rather dull day of trade wherein most of the sectoral indices ended in the red. Equity ownership of retail investors now stands at a record 24.5% at the end of third quarter even as they remind themselves of rising fixed income rates on dull days like today," S Ranganathan, Head of Research at LKP Securities, said.

“Nifty formed a bearish Engulfing pattern suggesting more pain in the near term. A break of 17721 could lead to a faster fall towards the 17517-17545 band. On up moves, 17877 could be tough to breach in the near term. Q3 corporate results season could end in the next two days. Majority of companies that reported numbers in the last few days have disappointed on the street and that is getting reflected in the poor advance decline ratio today,” Deepak Jasani, Head of Retail Research, HDFC Securities, said.

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

US market
US main stock indexes rose on Monday as investors piled into beaten-down megacap growth stocks with a decline in Treasury yields boosting sentiment, while Meta Platforms gained on reports the Facebook parent was planning fresh layoffs.

At 10:12 a.m. ET, the Dow Jones Industrial Average was up 196.57 points, or 0.58%, at 34,065.84, the S&P 500 was up 21.17 points, or 0.52%, at 4,111.63, and the Nasdaq Composite was up 75.59 points, or 0.65%, at 11,793.71.

European shares
European stock markets rose Monday as investors set aside Asian losses and forecast easing inflation in Britain and the United States, dealers said. The pan-European Stoxx 600 index was up 0.7% by mid-afternoon, with all sectors and major bourses in positive territory

Tech View: Negative candle
A reasonable negative candle was formed on the daily chart, which indicates a range movement with weak bias for the market. The smaller degree of higher tops and bottoms continued on the daily chart, and current weakness could be in line with the new higher bottom formation. But higher bottom reversal needs to be confirmed, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Sun Pharma Advanced, Birlasoft, DCB Bank, Pricol and IRB Infrastructure, 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 on the counters of IDFC, M&M, NCC, Wipro and Balkrishna Industries, among others. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks in value terms
Coforge (Rs 3352 crore), Adani Enterprises (Rs 2140 crore ) and RIL (1109 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
Yes Bank (Shares traded: 17.75 crore), Zomato (Shares traded: 8.61 crore), Tata Steel (Shares traded: 5.61 crore) and PNB (Shares traded: 5.36 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Archean Chemical, HG Infra, CG Power, Cera Sanitary and Sundaram Fasteners, 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 Adani Transmission, Adani Green, Adani Gas, Pfizer and Indigo Paints, among others, hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bears
Overall, market breadth favoured bears as1,256 stocks ended in the green, while 2,337 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)