Ahead of Market: 12 things that will decide stock action on Tuesday

NEW DELHI: Nifty50 on Monday formed an indecisive Spinning Top candle as well as an 'Inside Bar' on the daily chart, indicating selling pressure near the 15,900 level. Analysts said a breakout above the 15,600-900 level will now decide the market direction.

Here's how analysts read the market pulse:-

Mazhar Mohammad of Chartviewindia.in said the market appears to be in a rangebound move as Nifty keeps faltering at the 15,900 level. "The bears may eventually gain an upper hand holding the bulls from lifting the index above 15,900 level," he said.

Shrikant Chouhan of Kotak Securities said the market is showing signs of indecisiveness. "A close below the 15,750 level on Tuesday on an hourly basis may drag Nifty50 towards the 15,650 level," he said.

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

US benchmark indices edge higher
Wall Street indices hovered near record highs on Monday in a week packed with heavyweight technology earnings, with investors staying away from big bets in the runup to a policy meeting by the Federal Reserve. At 12:03 p.m. ET, the Dow Jones Industrial Average was up 19.22 points, or 0.05%, at 35,080.77, the S&P 500 was up 7.36 points, or 0.17%, at 4,419.15. The Nasdaq Composite was up 10.73 points, or 0.07%, at 14,847.73.

European shares slips from record highs
European stocks eased from all-time highs on Monday, hurt by a decline in shares of Dutch technology investor Prosus on regulatory clampdowns in China. The pan-European STOXX 600 index fell 0.1%, snapping a four-session rally. Prosus NV, which has a 28.9% stake in Tencent, tumbled 8.8% to a more than one-year low after Beijing intensified its regulatory crackdown on the Chinese internet giant.

Tech View: Nifty forms Inside Bar candle
Nifty50 on Monday witnessed selling pressure near the 15,900 level, as the index ended up forming an indecisive Spinning Top candle as well as an 'Inside Bar' on the daily chart. The broader range for the NSE barometer stayed at 15,600-900, a breakout of which will decide the market direction, analysts said. In the immediate future, the 15,750 level will offer some support to the index while the 15,900 level continues to remain an immediate hurdle.

F&O: India VIX moves above 12 level
India VIX moved up 5.87 per cent from 11.76 to 12.45 level. A spike in volatility has given some profit booking, but overall lower volatility indicates that buying interest could emerge again at any meaningful declines. Options data suggested a broader trading range between 15,700 and 16,000 levels.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of YES Bank, Steel Authority of India, Indiabulls Housing Finance, SBI Cards, Mahindra CIE Auto, Kotak Mahindra Bank, Fortis Healthcare, Jain Irrigation, SBI Life Insurance, Aptech, Orbit Exports, Persistent Systems, EID Parry, Signet Industries, Premier Polyfilm, Apcotex Industries, Avenue Supermarts, Torrent Pharma, Seamec, Advanced Enzyme Tech, Pidilite Industries, ADF Foods, Kuantum Papers, Lux Industries, TCPL Packaging, The Hi-Tech Gears, Rajratan Global Wire, Lumax Industries and Lakshmi Finance.

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 Edelweiss Financial Services, Biocon, Welspun Corp, Vardhman Acrylics, Puravankara, Minda Corporation, Alembic, Jindal Worldwide, Aditya Birla Money, GPT Infraprojects, Hindustan Media Ventures, DCM Shriram, Heidelberg Cement, Ceat, FDC, Apollo Micro Systems, Biofil Chemicals, Phoenix Mills, BF Investment, Sangam India, Intrasoft Technologies, Maheshwari Logistics, Pressman Advertising, Venus Remedies, HB Stockholding, Zydus Wellness, Bharat Bijlee, Poddar Housing, and IVP. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms
Zomato (Rs 3,362.03 crore), ICICI Bank (Rs 2,104.52 crore), RIL (Rs 1,196.36 crore), Indiabulls Housing Finance (Rs 1,162.60 crore), Tata Steel (Rs 1,123.75 crore), JSW Steel (Rs 1,039.60 crore), JSPL (Rs 1,011.56 crore), ITC (Rs 1,007.95 crore), HDFC Bank (Rs 944.69 crore) and SBI Cards (Rs 884.33 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
YES Bank (Shares traded: 25.29 crore), Zomato (Shares traded: 24.97 crore), Vodafone Idea (Shares traded: 21.95 crore), Reliance Communication (Shares traded: 7.17 crore), MPS Infotecnics (Shares traded: 7.16 crore), JP Power (Shares traded: 6.73 crore), SAIL (Shares traded: 6.25 crore), ITC (Shares traded: 4.73 crore), Indiabulls Housing Finance (Shares traded: 4.00 crore) and PNB (Shares traded: 3.95 crore) were among the most traded stocks in the session.

Stocks showing buying interest
Ajanta Pharma, Aptech, Bajaj Finserv, Caplin Point, Zomato, Alkyl Amines, Mahindra CIE and Gujarat Fluorochem witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Monday signalling bullish sentiment.

Stocks seeing selling pressure
Akg Exim and Madhav Copper witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.

Sentiment meter favours bears
Overall, the market breadth remained in favour of the bears. As many as 229 stocks on the BSE500 index settled the day in the green, while 264 settled the day in the red.

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