The Economic Times daily newspaper is available online now.

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

    Synopsis

    Nifty opened on a negative note on Monday & moved lower in the beginning of the session. However, the key hourly moving averages offered support on the downside & restricted further downside. Consequently, the index traded in a sideways manner as the day progressed & ultimately formed an Inside bar on the daily chart

    Ahead of Market: 10 things that will decide D-St stock action on TuesdayiStock
    After the robust US jobs data bolstered fears that the Fed will continue with its rate hike stance for longer, Indian indices mirroring world markets ended lower. Nifty dropped again to below 17,800 levels ending at 17,765 points, a cut of 0.5%. Nevertheless, broader markets rose substantially around 1%, outperforming their headline peers.

    Here's how analysts read the market pulse:

    “A strong job market in the United States pushed the global market lower on rate hike fears, as it offers the Fed more leeway in enacting stricter policy measures. This was in contrast to the recent rally in the global indices on the expectation that the economy is in its last phase of policy tightening. RBI’s policy announcement on Wednesday will provide more colour on its future rate actions, which is expected to hike rate by 25bps,” said Vinod Nair, Head of Research at Geojit Financial Services.

    “Nifty opened on a negative note on Monday & moved lower in the beginning of the session. However, the key hourly moving averages offered support on the downside & restricted further downside. Consequently, the index traded in a sideways manner as the day progressed & ultimately formed an Inside bar on the daily chart.

    “Going ahead, 17700 & 17870 are key support & resistance respectively. The index has a potential to stretch towards the 18000 mark as long as it stays above 17700,” Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas, said.

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

    US Market
    US stock indexes edged lower on Monday with Tyson Foods falling on disappointing quarterly results, while investors reassessed their predictions on when the US Federal Reserve would start cutting rates.

    The non-farm payrolls report on Friday that showed the U.S. economy added jobs at a rapid pace spooked investors. More than 69% of the S&P 500 firms have reported results above expectations, according to Refinitiv. Overall, analysts still expect quarterly earnings of S&P 500 firms declining 2.8%. At 10:24 a.m. ET, the Dow Jones Industrial Average was down 179.60 points, or 0.53%, at 33,746.41, the S&P 500 was down 33.71 points, or 0.81%, at 4,102.77, and the Nasdaq Composite was down 125.32 points, or 1.04%, at 11,881.64. All of the 11 major S&P 500 indexes were in the red with the real-estate sector slumping 1.5%.

    European shares
    All the sector indices, barring telecommunications, were in the red. Basic resources and technology bore the brunt of selling pressure, dropping around 1% each. The pan-European STOXX 600 was down 0.8% at 0913 GMT, pulling back from a nine-month high it hit on Friday, the last day of a two-week rally on optimism that the United States and the euro zone would likely avoid a recession. Aurubis AG dropped 6.4% after posting a roughly 24% fall in quarterly earnings due to high energy prices and inflation.

    Tech View: Small inside body bearish candle
    Headline equity index Nifty today formed a small inside body bearish candle, which indicates the continuation of a non-directional activity in the near future. Now, it needs to hold above 17777 zones, for an up move towards 17950 then 18081 zones whereas supports are placed at 17650 and 17500 zones, said Chandan Taparia of Motilal Oswal.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of IDFC First Bank, Paytm, Zydus Lifesciences, HDFC Bank and Biocon 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 signaling weakness ahead
    The MACD showed bearish signs on the counters of Chennai Petroleum, Kohinoor Foods, Gravita India, Garden Reach Shipbuilders and IIFL Securities among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

    Most active stocks in value terms
    Adani Enterprises (Rs 2,973 crore), Adani Ports (Rs 1,998 crore), RIL (Rs 1,583 crore), SBI (Rs 1,381 crore) and Ambuja Cements (Rs 1,231 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
    Vodafone Idea (Shares traded: 67.51 crore), Yes Bank (Shares traded: 20.88 crore), PNB (Shares traded: 5.77 crore) and Tata Steel (Shares traded: 4.95 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest

    Shares of Cadila Healthcare, M&M Financial, IDFC, Radico Khaitan and Data Patterns 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 Adani Transmission, Adani Green Energy, Divis Labs, Relaxo Footwear and Gland Pharma among others hit their 52-week lows, signaling bearish sentiment on the counters.

    Sentiment meter favours bulls
    Overall, market breadth favoured bulls as 1,695 stocks ended in the red while 1,900 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)





    (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


    (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
    The Economic Times

    Stories you might be interested in