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

Markets continued their winning run, with Sensex ending above 60,000 levels, while Nifty ended just shy of the 18,000 mark at 17,936 levels. Sectorally, buying was seen in IT, PSU Bank and realty counters.

Here's how analysts read the market pulse:

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One, believes that though the key indices are lacking a bit of momentum, the undertone seems strongly bullish, and as a result, the Nifty is now within a touching distance of the psychological mark of 18,000. It’s merely a formality now, and we will see it on the screen very soon. A move towards 18,200 – 18,350 shortly is also clearly on the cards. This view remains valid as long as Nifty defends 17,700 – 17,600 on a closing basis. Today, the banking had a fantastic start, but follow-up was missing.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said domestic equities were strong on the back of positive global cues. Nifty opened higher and remained firm throughout the session to close with gains of 103 (0.6%) points at 17936 levels. Broader market also ended on a healthy note with gains of more than 1%.

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

Wall Street hits more than two-week high
Energy and technology shares helped drive U.S. stocks to their highest in more than two weeks on Monday ahead of a crucial inflation reading this week that could determine the pace of interest rate hikes by the Federal Reserve.

At 9:51 a.m. ET, the Dow Jones Industrial Average was up 216.93 points, or 0.67%, at 32,368.64, the S&P 500 was up 34.33 points, or 0.84%, at 4,101.69, and the Nasdaq Composite was up 100.13 points, or 0.83%, at 12,212.44, their highest levels since August 26.

All of the S&P 500 sectoral indices were up in early trading, led by a 2% jump in energy shares. Oil prices rose as supply concerns mounted amidst uncertainty over Iranian nuclear talks.

Heavyweight Amazon.com, Tesla Inc and Apple Inc added between 1.2% and 2.1%, providing the biggest boost to S&P 500 and the Nasdaq .

European shares jump
European shares jumped on Monday after Ukrainian forces advanced rapidly in Kharkiv province, in Russia's worst setback since abandoning its Kyiv push in March, while the euro extended its European Central Bank-inspired gains from last week.

On Saturday, Moscow abandoned its main bastion in northeastern Ukraine, in a sudden collapse of one of the war's principal frontlines after Ukrainian forces made a rapid advance.

The broad pan-European STOXX 600 index was up 1.1% in afternoon trading, hitting its highest since the end of August. Germany's DAX rose 1.7%, France's CAC 40 and Britain's FTSE 100 both jumped 1.3%.

Tech View: Small bullish candle
After a gap-up start, the NSE barometer ended up forming a small bullish candle with an upper wick, reflecting the selling pressure that the index witnessed around the 18,000 level.

The Nifty50 made strong gains and closed near the psychological mark of 17,800. After a gap-up start, the index formed a small bullish candle with a long lower wick, suggesting intraday selling was bought into. Analysts said a follow-up buying might help gauge the strength of the up move.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Zee Entertainment, Wipro, Welspun India, KPIT Technologies and Castrol India.

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 signalling weakness ahead
The MACD showed bearish signs on the counters of Coal India, NHPC, Indiabulls Real Estate, IFCI and Ircon International.

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

Most active stocks in value terms
Ambuja Cements (Rs 1,292.5 crore), Axis Bank (Rs 1,239 crore), Adani Ports SEZ(Rs 1172 crore), HAL (Rs 952 crore), RIL (Rs 891 crore), and Infosys (Rs 845 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
Reliance Power (Shares traded: 10.79 crore), Yes Bank (Shares traded: 9.84 crore), JP Power (Shares traded: 7.91 crore), Suzlon Energy (Shares traded: 7.12 crore) and Vodafone Idea (Shares traded: 7.08 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Campus Activewear, Fine Organic, HAL, and Tata Investment witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of Natco Pharma witnessed strong selling pressure and hit its new 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured winners as 2,165 stocks ended in the green, while 1,428 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)