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

    Synopsis

    After showing weakness in the last couple of sessions, Nifty witnessed a decent upside bounce on Monday and closed the day higher by 151 points. After opening with a slightly positive note, Nifty continued its upside momentum for the whole session.

    Ahead of Market: 10 things that will decide D-Street action on TuesdayAgencies
    Indian indices snapped their 2-day losing streak on Monday and ended higher amid weak global cues. The benchmark BSE Sensex rose 468 points to settle at 61,806.19. The two-day slide had pulled the index down 2.5%. Automakers were among the top performers on the index. All sectoral indices barring Nifty IT and Nifty PSU Bank, ended with gains.

    Here's how analysts read the market pulse:

    “Nifty found support around the lower side of the rising channel, leading to a recovery towards the end of the session. The momentum indicator RSI (14) is in a bullish crossover on the short term timeframe (hourly). The short-term trend will likely remain bullish until the index sustains above 18,350. On the lower end, support is pegged at 18,350/18,150. Resistance on the higher end, is seen at 18,500/18,700,” Rupak De, Senior Technical Analyst at LKP Securities, said.

    “After showing weakness in the last couple of sessions, Nifty witnessed a decent upside bounce on Monday and closed the day higher by 151 points. After opening with a slightly positive note, Nifty continued its upside momentum for the whole session. Minor intraday dips in between have been used to move up further and Nifty closed near the day’s high,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.

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

    US market
    US stocks were mixed shortly after the opening bell on Monday as recession fears continued to weigh on investors.

    The S&P 500 fell less than 0.1% and the Dow Jones Industrial Average rose 56 points, or 0.1%. The Nasdaq Composite dropped 0.2%.

    Stocks tend to rally at the end of the year as investors adjust their portfolios and thin trading volumes lead to bigger daily swings. But some investors believe stocks will struggle to end the year on a high note as worries over the health of the global economy and the path for interest rates continue to weigh.

    As of Friday’s close, the S&P 500 had fallen 5.6% so far in December. Ending the month in the red would be unusual: The index has risen in 73% of Decembers since 1928, according to Dow Jones Market Data.

    European shares
    European shares advanced on Monday, supported by the energy sector, after a bruising selloff last week sparked by growing fears of a global recession as major central banks promised further interest rate hikes ahead.

    The region-wide STOXX 600 index was up 0.5% at 0913 a.m. GMT. Energy stocks jumped 2.6% to spearhead gains in the index, as oil prices were supported by the prospects of demand recovery in top consumer China, although surging COVID-19 cases in the country after it relaxed some of its stringent curbs remain a cause of concern. The STOXX 600 has lost 12.5% this year on fears of a recession after the European Central Bank (ECB), like other major central banks, embarked on its aggressive rate-hike campaign to stem a surge in prices partly driven by the Russia-Ukraine war.

    Tech View: Long green candle
    A long green candle was formed on the daily chart, which signalled a pullback rally in the market after a small downward correction. The negative chart pattern like smaller degree lower tops and bottoms continued as per the daily time frame chart.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Shree Renuka Sugars, HUDCO, Dhampur Sugar and PB Fintech, among others.

    The MACD is known for signalling 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 BOB, J&K Bank, Trident, IDBI Bank and City Union Bank, 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
    Infosys (Rs 938 crore), RIL (Rs 921 crore), HDFC Bank (Rs 786 crore) and Suzlon Energy (Rs 740 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

    Suzlon Energy (Shares traded: 63.82 crore), Yes Bank (Shares traded: 33.33 crore), UCO Bank (Shares traded: 12.21 crore), and IOB (Shares traded: 11.59 crore) were among the most traded stocks in the session on the NSE.

    Stocks showing buying interest
    Shares of GIC, Suzlon Energy, Kalyan Jewellers and Adani Enterprises, 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 Nykaa, Polyplex Corp, Aurobindo Pharma, and Aarti Industries hit their 52-week lows on Tuesday, which signalls bearish sentiment on the counters.

    Sentiment meter favours bulls
    Overall, market breadth favoured bulls as 2,177 stocks ended in the green, while 1,501 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)




    (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 .)

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    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
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