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

Led by FMCG and bank stocks, the headline equity index Nifty today rose 0.5 per cent. While the Sensex jumped over 325 points, the Nifty rallied 83.3 points to end the day at 15,835. Metals, IT, auto and pharma sectors were among the laggards.

Here's how analysts read the market pulse:

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the short-term trend of the Nifty continues to be positive with range movement. “The market is now showing signs of witnessing a decisive upside breakout of the important resistance of 15,900 levels in the next 1-2 sessions. A sustainable upmove above 15,900-15,950 is expected to pull the Nifty towards the next resistance of 16,300 in the short term. Immediate support is placed at 15,750,” he said.

Ajit Mishra, VP - Research, Religare Broking, said indications are in favour of a further rebound in the index, thanks to fresh buoyancy in the banking and financial pack. “However, supportive global cues would continue to play a critical role in any sustained up move.”

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

US market shut
The US stock market was shut for a holiday on account of American Independence Day today.

Energy shares boost European equities
European shares rose on Monday, led by shares of oil and gas companies, with investors awaiting eurozone inflation data after a red-hot consumer price report last week cemented the case for rate hike by the European Central Bank (ECB).

The continent-wide STOXX 600 index was up 0.8 per cent by 0716 GMT, after falling last week on worries about a potential global economic slowdown.

Tech View
Nifty50 formed a bullish candle on the daily chart. Analysts said the index might remain in the consolidation range with a positive bias as long as it does not breach the 15,900 level decisively on the upside. They see strong support for the index at the 15,700 level.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Dilip Buildcon, Sumitomo Chemical, ABB India, Bayer CropScience, GSK Pharma and Prestige Estate.

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 SRF, Welspun Corp and ONGC. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks in value terms
RIL (Rs 4,659 crore), ITC (Rs 1,157 crore), ONGC (Rs 1,083 crore), TCS (Rs 853 crore), Infosys (Rs 710 crore), and Tata Steel (Rs 660 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 highest trading turnovers in the day.

Most active stocks in volume terms
ONGC (Shares traded: 8.6 crore), ITC (Shares traded: 4 crore), RIL (Shares traded: 1.9 crore), NTPC (Shares traded: 1.7 crore), PowerGrid (Shares traded: 1.5 crore) and Tata Motors (Shares traded: 1.1 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of AIA Engineering, Jamna Auto, ITC, Chalet Hotels, Coromandel International and Blue Dart witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of IndiaMART 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 1,976 stocks ended in the green, while 1,411 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)