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

NEW DELHI: Amid weak global cues and lack of buying in heavyweights, the headline index corrected further in the later part of the day, and the Nifty ended the day above 16,050 with a loss of almost a per cent. Denting the market mood, the Indian rupee depreciated 15 paise to an all-time low of 79.60 against the US dollar.

Here's how analysts read the market pulse:

Ruchit Jain, Lead Research, 5paisa.com, said the immediate support is placed in the range of 16,000-15,950, and the short-term traders can look for buying interest in this support range. "The overall market breadth remains positive and is not the way we had recently seen during the downtrend. Hence, taking a stock-specific approach could be a better way to trade for the next few trading sessions," he said.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the underlying trend of Nifty seems to have turned down for short-term correction. "Nifty showing lack of strength post upside breakout of resistance and the presence of an important hurdle of down gap resistance at 16,170 levels signal more weakness ahead for the market. A decisive move below the next support of 15,900 could open more weakness for the Nifty ahead," he said.

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

US stocks waver
Stocks wavered in morning trading on Wall Street Tuesday as traders brace for a big week of news on inflation and company earnings reports.

The S&P 500 fell 0.3% as of 10:19 a.m. Eastern. The Dow Jones Industrial Average rose 30 points, or 0.1%, to 31,210 and the Nasdaq fell 0.4%.

Oil prices slumped 6% and weighed on energy stocks, which also checked gains elsewhere in the market. Hess fell 5.6%.

European stocks close higher
European stocks closed higher on Tuesday, reversing earlier losses as market participants closely monitored the euro and economic data.

The pan-European Stoxx 600 index provisionally ended up 0.4%, with most sectors and major bourses in positive territory.

Tech View: Small bearish candle
Nifty50 on Tuesday formed a small bearish candle on the daily chart and moved below its 50-day simple moving average. Analysts said the index has failed to see a follow-up buying after recently breaking out of a strong hurdle.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of ITI Ltd, Galaxy Surfactants, CAMS and SRF.

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 CESC, Sanofi India, KEI Industries, Poly Medicure, Alembic Pharma and Just Dial. 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 1,206 crore), TCS (Rs 1,160 crore), Tata Steel (Rs 904 crore), ICICI Bank (Rs 779 crore), HDFC Bank (Rs 689 crore), and Infosys (Rs 683 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: 2.5 crore), NTPC (Shares traded: 1.9 crore), Hindalco (Shares traded: 1.7 crore), ITC (Shares traded: 1.4 crore), ICICI Bank (Shares traded: 1 crore) and Tata Steel (Shares traded: 1 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Adani Gas, M&M Financial, Sumitomo Chemical, 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 HCL Tech and Gland Pharma 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 1,436 stocks ended in the green, while 1,871 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)