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

Benchmark indices rallied for the second day in a row led by gains in the PSU bank stocks. Nifty ended higher at 17,480 points. SBI, Adani Ports, Eicher Motors, Nestle and SBI Life led the Nifty gainers’ pack while the laggards were NTPC, HDFC, Bajaj Auto, Tech Mahindra and Britannia.

Here's how analysts read the market pulse:

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, “After showing an upside bounce from the intraday lows on Monday, Nifty witnessed a decisive upmove on Tuesday and closed the day higher by 175 points. After opening with an upside gap of 123 points, the market made an attempt to move up in the early part of the session. It later shifted into a range bound action in the middle part and closed near the highs. The opening upside gap remains unfilled.”

Rupak De, Senior Technical Analyst at LKP Securities, said "The benchmark index has moved above the previous consolidation as the Nifty ended in the green for the second consecutive session. The momentum indicator RSI is in bullish crossover and rising suggesting a positive momentum in the near term. The trend is expected to remain positive as long as the Nifty sustains above the crucial support of 1,7250."

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

US stocks rally again after Goldman results
Wall Street stocks advanced for a second straight session early Tuesday following solid corporate results that added to hopes about earnings season.

Analysts pointed to better-than-expected reports from Goldman Sachs and Johnson & Johnson as a positive driver for stocks, along with shifting investor sentiment.

At 12:11 p.m. ET, the Dow Jones Industrial Average was up 268.46 points, or 0.89%, at 30,454.28, the S&P 500 was up 35.15 points, or 0.96%, at 3,713.10 and the Nasdaq Composite was up 96.01 points, or 0.90%, at 10,771.81.


European shares extend gain
European shares advanced on Tuesday, building on the previous session's rally, driven by the historic reversal of Britain's fiscal plan, with investors keeping a watch on earnings reports to gauge the economic outlook. The region-wide STOXX 600 index was up 0.5% by 0705 am GMT, extending gains for a fourth straight session, led by technology stocks, with shares of chip makers such as ASML Holdings and BE Semiconductor up between 0.9% and 3%.

Tech View: Bullish candle on the daily chart
On the daily chart, Nifty formed a bullish candle with a long upper shadow. The momentum indicator RSI was rising and remained in bullish crossover suggesting a positive momentum in the near term.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trend in the counters of PNB, SBI, BOB, Karur Vysya Bank and Kalyan Jewellers, 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 signalling weakness ahead
The MACD showed bearish signs in the counters of Samvardhana Motherson, Renuka Sugars, NMDC, Vedanta and HFCL. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms
RIL (Rs 1,404 crore), Tata Elxsi (Rs 1,394 crore), HDFC (Rs 1,271 crore), SBI (Rs 1,141 crore), and BHEL (Rs 943 crore) were among the most active stocks on the NSE in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.

Most active stocks in volume terms
Suzlon Energy (Shares traded: 19.81 crore), BHEL (Shares traded: 13.97 crore), Motherson Sumi (Shares traded: 10.51 crore) and PNB (Shares traded: 9.38 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Data Patterns, Orient Refractories, NHPC. Indian Bank and TVS Motor among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure

Shares of Motherson Sumi, Alembic Pharma, Alok Industries and Nykaa among others witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured losers as 2,002 stocks ended in the green, while 1,431 names ended in the red.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)