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    Ahead of Market: 12 things that will decide D-Street action on Tuesday

    Synopsis

    "The trend is likely to remain positive for the near term as long as 16,400 is held on a sustained basis. On the higher end, resistance is seen at 16,800.”That said, here’s a look at what some key indicators are suggesting for Tuesday’s action

    12 things that will decide D-Street action on TuesdayShutterstock.com
    Wall Street's main indexes opened higher on Monday after a drop last week, with U.S.-listed shares of Chinese technology companies rallying on optimism around easing regulatory crackdowns and relaxing COVID-19 curbs in the world's second-largest economy.
    Indian stocks have seen some recovery in the market as investors grabbed the stocks at low valuations, but choppiness continues. Analysts also believe this is the right time to pick quality stocks at cheap valuation.

    Here's how analysts read the market pulse:

    Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said: a small positive candle was formed on the daily chart with minor upper and lower shadow, indicating high wave-type candle formation.

    Rupak De, Senior Technical Analyst at LKP Securities, said on the lower end, bulls have protected the crucial support of 16,400, which led to a rally towards 16,600.

    "The trend is likely to remain positive for the near term as long as 16,400 is held on a sustained basis. On the higher end, resistance is seen at 16,800.”

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

    Wall Street opens higher
    Wall Street's main indexes opened higher on Monday after a drop last week, with U.S.-listed shares of Chinese technology companies rallying on optimism around easing regulatory crackdowns and relaxing COVID-19 curbs in the world's second-largest economy.

    The Dow Jones Industrial Average rose 132.34 points, or 0.40%, at the open to 33,032.04.

    The S&P 500 opened higher by 26.18 points, or 0.64%, at 4,134.72, while the Nasdaq Composite gained 187.59 points, or 1.56%, to 12,200.33 at the opening bell.

    European stocks rise
    European equities rebounded from last week’s declines after China eased Covid-19 curbs, fueling risk-on sentiment.

    The Stoxx Europe 600 rose 1% at 1 p.m. in London as a loosening of restrictions in Beijing increased bets that economic activity will pick up. Commodity-tied stocks jumped with oil and metals, while technology shares advanced with peers in Asia and the US.

    The FTSE 100 gained 1.3% after UK markets resumed trading following a holiday, even as Boris Johnson faces a leadership vote in his ruling Conservative Party.

    Tech View: Bullish candle
    After a volatile session, NSE Nifty 50 index closed with minor cuts, but it formed a small bullish candle on the daily charts as bulls managed to defend the crucial support of the 16,400 level.

    F&O: Support at 16,000
    On the call side, the biggest open interest is at 17,200, followed by 17,000, meaning these are two resistance levels. On the put side, open interest converges at 16,300, followed by 16,500, providing support.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Thyrocare Tech, Adani Gas, RBL Bank, Coromandel International, Jubilant Life and P&G Health.

    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 Ramco Cements, Gujarat Ambuja, Carborundum Universal, Gujarat Gas, Tata Investments and Apollo Tyres. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

    Most active stocks in value terms
    Reliance Industries (Rs 1421 crore), Infosys (Rs 1006 crore), Aether Industries (Rs 685 crore), ICICI Bank (Rs 680 crore), HDFC (Rs 660 crore), Tata Steel (Rs 613 crore) and JSW Steel (Rs 595 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
    Suzlon Energy (Shares traded: 11 crore), GTL Infra (Shares traded: 8 crore), Vodafone Idea (Shares traded: 8 crore), JP Power (Shares traded: 7 crore), Renuka Sugars (Shares traded: 3 crore) and YES Bank (Shares traded: 3 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Oil India and Sumitomo Chemical witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

    Stocks seeing selling pressure
    Anupam Rasayan, Birla Corporation, Vijaya Diagnostics, Shree Cements, JK Cement, UTI AMC and Just Dial witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

    Sentiment meter favours bears
    Overall, market breadth favoured losers as 1,373 stocks ended in the green, while 2,021 names settled with cuts.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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