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

NEW DELHI: Market movement remained subdued for another day on Monday, taking the losses to the fourth straight day. Analysts cautioned that the market is facing a number of headwinds and investors should be picky about what they buy.

Here's how analysts read the market pulse:-

Nagaraj Shetti, Technical Research Analyst, HDFC Securities said the previous opening gaps as per weekly chart have been filled subsequently after opening.

"A Death Cross signals a bearish trend ahead. But the Nifty50 also made an indecisive Doji as there was no follow up selling after the opening gap down. While the trend stays negative, a bounce cannot be ruled out," said Chandan Taparia of Motilal Oswal Securities.

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

Global cues
Wall Street opened higher Monday while US Treasury yields hit three-year highs as investors eyed corporate earnings and what Russia's invasion of Ukraine could mean for global growth.

A significant cut to global growth expectations from the World Bank, paired with March weakness in China's latest economic numbers injected some pessimism into US markets, which opened Monday following a holiday-shortened previous week.

Corporate earnings are also expected to grab investors' attention this week, with several major firms reporting quarterly numbers. Bank of America kicked off the week by reporting stronger first-quarter profits than expected.

Stocks were up in early trading, with the Dow Jones Industrial Average rising 0.22%, the S&P 500 climbing 0.25% and the Nasdaq Composite up 0.23%. Markets were closed in Australia, Hong Kong and many parts of Europe for the Easter holiday.

Tech View: Death cross
Nifty50 on Monday made a 'Death Cross' as the 50-day simple moving average fell below its 200-day moving average. It is a strong bearish signal.

F&O: Support at 17,000
On the derivatives front, the highest call options OI is at 17,500/17,400 strike price followed by 17,200 while on the put side, acting as resistances, the highest put OI is at 17,000 strike price followed by 17200 levels, which will act as supports.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of JK Paper, Orient Refractories and Rajesh Exports.

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 Jindal Stainless, KEI Industries, Oracle, NMDC, Concor and IRB Infra. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms
Infosys (Rs 4963 crore), HDFC Bank (Rs 3212 crore), Tata Power (Rs 2330 crore), HDFC (Rs 2091 crore), TCS (Rs 1356 crore), ICICI Bank (Rs 1347 crore) and NTPC (Rs 1321 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.

Most active stocks in volume terms
Vodafone Idea (Shares traded: 12 crore), YES Bank (Shares traded: 10 crore), Tata Power (Shares traded: 9 crore), NTPC (Shares traded: 8 crore), GTL Infra (Shares traded: 8 crore) and Suzlon India (Shares traded: 5 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Bharat Dynamics, Chambal Fertilisers, NTPC, JK Paper. Gujarat Ambuja, Rashtriya Chemicals and Mazagon Dock witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure
No stock witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bears
Overall, market breadth favoured losers as 1,393 stocks ended in the green, while 2,133 names settled with cuts.

Podcast:

With the war between Russia and Ukraine intensifying over the weekend, domestic investors who were returning to markets after a four-day gap, found themselves faced with bad news on multiple fronts. Find out what led to the bloodbath in markets today. Earnings of heavyweights in IT and banks so far have disappointed markets. Tune in to listen to market analysts share the outlook on these sectors.