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

India's key benchmarks advanced over 1% on Monday, helped by a recovery in financials, strong earnings, and improved sentiment following robust economic data from the United States.

The Nifty 50 closed 1.08% higher at 18,264.40, while the S&P BSE Sensex rose 1.16% to 61,764.25. Both benchmarks posted their best single-day gains in over a month.

Here's how analysts read the market pulse:

“Indian equities gained confidence from strong domestic earnings and fading concerns over the US economic slowdown following robust job data. The recent weakness in the US dollar is drawing more foreign funds to the domestic market, with FIIs remaining net buyers for seven consecutive days. The US inflation report, due on Wednesday, is expected to remain around the March level of 5.0%,” Vinod Nair, Head of Research at Geojit Financial Services, said.

“The index has gone beyond the high point it had reached in the previous week, and the strong buying has led to a shift in the base level from 18000 to 18200. The current situation suggests that the index is still in buy mode, and it will remain so as long as it manages to hold on to the support of 18200,” Kunal Shah, Senior technical and derivative analyst at LKP Securities, said.

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

Wall Street Watch
Wall Street is holding a relatively steady Monday coming off its worst week in nearly two months, as stocks of several beaten-down banks rally.

The S&P 500 was virtually unchanged in early trading. The Dow Jones Industrial Average was edging down by 16 points, or less than 0.1%, at 33,657, as of 9:45 a.m. Eastern time, while the Nasdaq composite was 0.2% lower.

European shares
European shares edged higher on Monday, with energy and bank stocks spearheading gains, but were range-bound ahead of key U.S. inflation data due later in the week that would offer more cues on the Federal Reserve's monetary policy path.

The pan-European STOXX 600 rose 0.2% to 466.29 points by 0805 am GMT.

Tech View
A long bull candle was formed on the daily chart that covered the decline of the previous session on the upside and filled the opening downside gap of Friday and closed higher. This is a positive indication and one may expect further upside in the short term.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Tata Motors, ONGC, DLF and Asian Granito, among others.

Stocks signaling weakness ahead
The MACD showed bearish signs on the counters of Federal Bank, Shree Renuka Sugars, TCNS Clothing, Navneet Education and HBL Power Systems, among others.

Most active stocks in value terms
HDFC Bank (Rs 3064 crore), ICICI Bank (Rs 1747 crore), HDFC (Rs 1620 crore), Bajaj Finance (Rs 1472 crore) and Tata Motors (Rs 1165 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
IRFC (Shares traded: 15.89 crore), Zomato (Shares traded: 10.49 crore), Suzlon Energy (Shares traded: 7.01 crore), PNB (Shares traded: 6.41 crore) and YES Bank (Shares traded: 5.97 crore) among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Ion Exchange, Tata Motors, Equitas SFB, Apar Industries and Dalmia Bharat among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of Aditya Birla Retail, Blue Dart and Orient Electric among others hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured bulls as 1,654 stocks ended in the red, while 1,998 names settled with gains.

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