“A strong hurdle still exists at the 15,050 level. If Nifty manages to sustain above it for a day or close above it, only then we may see further upside," said Rohit Singre, Senior Technical Analyst at LKP Securities.
Shutterstock.com Nifty’s trading range for the day remained extremely narrow inside 70 points, which was less than the previous session’s 93 points
NEW DELHI: Nifty made a gap-up opening on Monday and traded rangebound as the headline index formed its second consecutive bullish 'Doji' candle on the daily chart, signalling indecisiveness in the market.
“A strong hurdle still exists at the 15,050 level. If Nifty manages to sustain above it for a day or close above it, only then we may see further upside. Otherwise, some profit booking is possible and support can shift to the 14,900-14,850 zone. If Nifty holds above these levels, the momentum can remain good,” said Rohit Singre, Senior Technical Analyst at LKP Securities.
“The market is daily moving upward cautiously and forming a series of indecisive candles. Whenever the market has formed a series of indecisive candles, Nifty has actually moved upward,” said Shrikant Chouhan, EVP, Equity Technical Research, Kotak Securities.
That said, here’s a look at what some of the key indicators are suggesting for Tuesday's action: Dow Jones hits record high
The Dow Jones Industrial Average hit a record high on Monday on hopes that interest rates would remain lower for longer, while the S&P 500 was subdued as a slide in technology shares offset a surge in commodity-linked energy and material stocks. At 10:05 p.m., the Dow Jones Industrial Average was up 274.08 points, or 0.79%, at 35,052.84, the S&P 500 was down 0.72 points, or 0.01%, at 4,231.88, and Nasdaq was down 190 points, or 1.38%, at 13,561.92.
European shares grind out fresh highs European stocks inched to new highs on Monday as optimism about the reopening of economies and easy monetary policy lifted sectors that typically benefit from a recovery. At 10:05 p.m IST, the pan-European STOXX 600 index rose 0.11% to hit a fresh all-time high, with miners rallying 2.6% to a 10-year-high on the back of strong commodity prices.
Tech View: Nifty chart hints at likely profit taking Nifty50 formed a bullish Doji kind of candle on Monday, indicating indecisiveness among investors. The trading range was narrower than the previous session, which is likely a hint of a slowdown in the upward journey as well as profit taking. “Nifty’s trading range for the day remained extremely narrow inside 70 points, which was less than the previous session’s 93 points, which hinted at waning momentum in the upward journey. These back-to-back narrow sessions can result in sudden trend reversal, as is evident from the historical price behaviour,” said Mazhar Mohammad, Chief Strategist, Chartviewindia.
F&O: Falling VIX holds out hope India VIX fell 2.86% from 20.82 to 20.22 levels. The fear gauge needs to hold below 20 level to again attract a bullish stance. On the options front, maximum Put Open Interest stood at 14,000 level followed by 13,500, while maximum Call OI was seen at 15,000 followed by 15,500 levels. There was Call writing at strike prices 15,700 and 15,400, while Put writing was seen at 14,000 and 14,500 levels. Options data suggested a wider trading range between 14,500 and 15,200 levels, while the immediate trading range lay between 14,800 and 15,100 level.
Stocks showing bullish bias Momentum indicator Moving Average Convergence Divergence (MACD) on Monday showed bullish trade setup on the counters of Jindal Steel & Power, Aditya Birla Capital, L&T Finance Holdings, Hindustan Zinc, HDFC Life Insurance, HDFC, CSB Bank, Dr. Reddy's Labs, Tech Mahindra, Va Tech Wabag, GMM Pfaudler, Sunteck Realty, Berger Paints, Neuland Labs and Future Enterprises.
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 Cholamandalam Investment, Prakash Pipes, SRF Ltd, Dixon Technologies, Mangalam Drugs, Supreme Petrochem, Prism Johnson, Maithan Alloys, Sicagen India, eClerx Services, Mukand Engineers and Raj Television Network. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Monday's most active stocks Tata Steel (Rs 3409.95 crore), SAIL (Rs 1683.58 crore), Tata Motors (Rs 1653.84 crore), Hindalco (Rs 1650.00 crore), BHEL (Rs 1629.17 crore), SBI (Rs 1514.59 crore), RIL (Rs 1243.03 crore), Dr. Reddy's (Rs 1197.03 crore), JSW Steel (Rs 1152.51 crore) and UPL (Rs 1107.04 crore) were among the most active stocks on Dalal Street on Monday in value terms.
Monday's most active stocks in volume terms BHEL (Shares traded: 25.90 crore), PNB (Shares traded: 17.57 crore), Vodafone Idea (Shares traded: 17.36 crore), South Indian Bank (Shares traded: 14.81 crore), SAIL (Shares traded: 11.43 crore), Yes Bank (Shares traded: 11.40 crore), NALCO (Shares traded: 9.94 crore), JP Associates (Shares traded: 7.55 crore), JP Power (Shares traded: 7.25 crore) and Tata Power (Shares traded: 7.00 crore) were among the most traded stocks in the session.
Stocks showing buying interest Balkrishna Industries, Divi's Labs, Happiest Minds, Hindalco, JSW Steel, Persistent Systems, Reliance Power and Vedanta witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Monday signalling bullish sentiment.
Stocks seeing selling pressure Suryoday SFB, Sundaram Finance, Suvidhaa Infoserve, Rajvir Industries, Jump Networks and Visesh Infotecnics witnessed strong selling pressure in Monday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls Overall, market breadth remained in favour of bulls. As many as 323 stocks on the BSE 500 index settled the day in green, while 173 settled the day in red.
Podcast: Is it time to go bullish on Dalal Street? >>> Benchmark indices managed to extend their gains from Friday. The gains were broad-based and driven by expectations of continued policy support from the US Fed following disappointing US jobs data. Metals, pharmaceuticals and some financial services companies hogged much of the spotlight today. In the broader market, the gains were more handsome as the Nifty Midcap and Nifty Smallcap index outperformed the bluechip index. We spoke to Narendra Solanki of Anand Rathi Financial Services to share his views on the market.
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