Manish Hathiramani, Technical Analyst at Deen Dayal Investments, said, a breach of the 15,300 level can open up doors for 15,550-15,600 levels.
Getty ImagesRohit Singre of LKP Securities said that the market structure will remain positive as long as the index stays above the 15,000 level.
New Delhi: The domestic equity market failed to extend its two-day gains and consolidated in a narrow range on Tuesday. Market witnessed profit taking in the banking space, though FMCG, consumer durables and IT stocks capped the fall.
Nifty kept paring any gains made throughout the day, eventually forming a Bearish Belt Hold candle on the daily chart, reflecting selling pressure. Analysts said, only a breach above the 15,300 level can open doors for any further move. As we near the derivatives expiry for May, will the market move upward or consolidate in a narrow range?
Here's how analysts read the market pulse:- Manish Hathiramani, Technical Analyst at Deen Dayal Investments, said, a breach of the 15,300 level can open up doors for 15,550-15,600 levels. "Till Nifty holds 14,900-15,000 level, we will remain in a bullish territory and one can utilise any correction in the index to accumulate long positions," Hathiramani said.
Rohit Singre of LKP Securities said that the market structure will remain positive as long as the index stays above the 15,000 level. He advised traders to book some profits in the 15,330-15,430 range.
That said, here’s a look at what some of the key indicators are suggesting for Wednesday's action: US shares give up gains after moving higher
US stocks closed slightly lower on Tuesday, and each of Wall Street's main indexes failed to stray far from the unchanged mark following a rally in the prior session as investors continue to try and assess the route of inflation. Yields on longer-dated U.S. Treasuries fell for a fourth straight day, with the benchmark 10-year yield hitting a fresh two-week low of 1.56% and helping to dampen inflation worries. The yield had climbed to as much as 1.776% at the end of March. Unofficially, the Dow Jones Industrial Average fell 83.93 points, or 0.24%, to 34,310.05, the S&P 500 lost 8.91 points, or 0.21%, to 4,188.14 and the Nasdaq Composite dropped 2.30 points, or 0.02%, to 13,658.87.
Asian shares up, dollar wallows Asian shares rose on Wednesday while the U.S. dollar stood near its lowest levels this year after U.S. Federal Reserve officials reaffirmed a dovish monetary policy stance, providing yet more assurance to investors worried about the inflation outlook. In early regional trade, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.28% near more than two-week highs, while Tokyo's Nikkei added 0.27%.
Tech View: Nifty50 forms Bearish Belt Hold candle Nifty50 on Tuesday faced selling pressure around its immediate resistance of 15,300 level. The index formed what looked like a Bearish Belt Hold for the day, even as it continued to make higher high and low formations for the third straight day. Analysts said that the 15,300 level may continue to remain key resistance for the index, breaching which the NSE barometer can hit fresh record highs. They see support for the index in the 15,150-15,000 range. A Bearish Belt Hold reflects selling pressure from the word go. It is formed when the opening level and the intraday level of the index are nearly the same.
F&O: VIX falls below 19 level India VIX fell down by 1.50 per cent from 19.13 to 18.84 levels. India VIX needs to hold below the 20 zone to extend the bullish market momentum towards new lifetime territory. On the option front, maximum Put Open Interest was seen at 15,000 level, followed by 14,500, while maximum Call OI was seen at 15,500 followed by 15,300 level. Call writing was seen at 15,300 and 15,350 levels, while Put writing was seen at 15,200 and 15,100 levels. Option data suggests a trading range between 15,000 and 15,400 zones.
Stocks showing bullish bias Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Jindal Saw, Elecon Engineering, Camlin Fine Sciences, Bajaj Consumer Care, Tata Chemicals, Tata Consultancy Services, Genus Power Infrastructure, Finolex Industries, Aditya Birla Fashion, Refex Industries, MphasiS, Waterbase, Max Financial Services, SMS Pharmaceuticals, Onward Technologies, Jagsonpal Pharma, TTK Prestige, Raj Television Network, Phoenix Mills, L&T Infotech, Kansai Nerolac Paint, Sobha, Albert David, Sundaram Finance, Mahindra EPC Irrigation, Huhtamaki India, 63 Moons Technologies, Blue Star, Sheela Foam, Ador Welding, Matrimony.com, Gandhi Specialty, Gillette India and Indo National.
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 Adani Power, Himadri Speciality, Tata Motors, Network 18 Media, Lupin, Sun TV Network, Alembic, Lincoln Pharmacy, Bharat Forge, Alkem Laboratories, Welspun Corp, Rallis India, Dhampur Sugar, Magma Fincorp, Poly Medicure, Coforge, Greenpanel Industries, Prism Johnson, Dalmia Bharat Sugar, Shalby, Ramkrishna Forgings, Dhanuka Agritech, Borosil, Gravita India, Gulshan Polyols, Oracle Financial Services, Mahindra Logistics, Ganesha Ecosphere, Tata Investment, Kakatiya Cement Sugar, Alphageo (India), D P Wires, Ambika Cotton Mi, SIL Investments and Kirloskar Industries. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Tuesday's most active stocks in value terms AmaraRaja Batteries (Rs 2,914.64 crore), SBI (Rs 2,303.80 crore), Tata Steel (Rs 2,013.80 crore), JSW Steel (Rs 1,555.28 crore), HDFC Bank (Rs 1,427.34 crore), RIL (Rs 1,346.69 crore), Concor (Rs 1,289.29 crore), Tata Motors (Rs 1,183.82 crore), SAIL (Rs 1,156.59 crore) and ICICI Bank (Rs 964.00 crore) were among the most active stocks on Dalal Street in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.
Tuesday's most active stocks in volume terms PNB (Shares traded: 16.35 crore), Dish TV India (Shares traded: 13.40 crore), Reliance Power (Shares traded: 11.86 crore), Union Bank India (Shares traded: 9.86 crore), SAIL (Shares traded: 9.18 crore), BHEL (Shares traded: 8.76 crore), YES Bank (Shares traded: 8.61 crore), Vodafone Idea (Shares traded: 8.17 crore), HFCL (Shares traded: 6.43 crore) and 3i Infotech (Shares traded: 5.71 crore) were among the most traded stocks in the session.
Stocks showing buying interest TTK Prestige, Finolex Cables, Supreme Petro, Relaxo Footwear and Concor witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure DSJ Communications, Keerti Knowledge and Skills, LCC Infotech, Moksh Ornaments and SMC Global Securities witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bears Overall, the market breadth remained in favour of bears. As many as 235 stocks on the BSE500 index settled the day in the green, while 260 settled the day in the red.
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