Here’s a look at what some of the key indicators are suggesting for Tuesday’s market action.
AgenciesNifty50 on Monday saw profit booking at the 200-day simple moving average (SMA) hurdle, as it cut substantial intraday gains to end half-a-per cent higher.
NEW DELHI: Nifty on Monday closed above the 10,800 mark, but formed a bearish candle on the daily chart as it ended below the opening level.
Chandan Taparia of Motilal Oswal Financial Services said Nifty has to hold above 10,700 level to extend its move towards 11,000, while key support exists at 10,650 and then 10,550 levels.
Bank Nifty has been underperforming Nifty since last two sessions. It has seen some shorts buildup in the futures segment. The index witnessed the formation of a Bearish AB=CD pattern on the daily chart, indicating the possibility of a trend reversal in the coming days.
Mazhar Mohammad of Chartviewindia.in said Nifty50 may continue to remain directionless, unless it registers a strong close above 10,900 level. The breach of 10,676 level may trigger weakness, sending Nifty reeling towards 10,450 level.
Gaurav Ratnaparkhi of Sharekhan said the index attempted to extend beyond the 200 DMA (10,885) but faced selling pressure near the key moving average. "The index remains within a range, which it has been witnessing for last few sessions. The broader market, on the other hand, has started showing signs of weakness," he said.
That said here’s a look at what some of the key indicators are suggesting for Tuesday’s market action:
US stocks gain on vaccine hopes Wall Street's main indexes rose on Monday with the Nasdaq at a fresh intraday record high as investors cheered signs of progress in COVID-19 vaccine development and an upbeat start to the second-quarter earnings season by Pepsi. The Dow Jones Industrial Average was up 278.85 points, or 1.07%, at 26,354.15, the S&P 500 was up 28.32 points, or 0.89%, at 3,213.36, and the Nasdaq Composite was up 134.46 points, or 1.27%, at 10,751.90.
European stocks edge higher European shares rose on Monday, with cyclical sectors leading gains as investors hoped the upcoming earnings season and stimulus talks will feed into an economic recovery from the coronavirus-induced downturn. The pan-European STOXX index rose 0.5%, with miners gaining 1.7% on optimism over China's recovery and surging metal prices. Other growth-oriented sectors such as travel & leisure , banks, automakers and oil & gas rose between 0.6% and 1.2%.
Tech View: 200-SMA halts Nifty march Nifty50 on Monday saw profit booking at the 200-day simple moving average (SMA) hurdle, as it cut substantial intraday gains to end half-a-per cent higher. The index formed a bearish candle on the daily chart, as the bulls failed to hold the momentum at higher levels. Nifty has been trading in a 220-point range roughly in the 10,670-10,884 zone in last six sessions and analysts said this consolidation may continue for some more time.
F&O: VIX rises; options signal a wider range India VIX moved up 1.02 per cent to 25.19 level on Monday. The overall lower volatility suggests a bullish stance of the market with a ‘buy on decline’ strategy. Options data suggested a wider trading range between 10,500 and 11,200 levels, while the immediate trading range stood between 10,600 and 11,000 levels.
Stocks showing bullish bias Momentum indicator Moving Average Convergence Divergence (MACD) on Monday showed bullish trade setup on the counters of Jindal Steel & Power, Bharti Airtel, Sun Pharma, Sequent Scientific, Bajaj Consumer Care, Navkar Corporation, ACC, Colgate Palmolive, SMS Pharmaceuticals, Suven Pharmaceutical, Cupid, Chembond Chemicals, Vimta Labs, Alembic Pharmaceuticals, Globus Spirits, SMS Lifesciences, India Glycols, Prakash Pipes, Timken India, GlaxoSmithKline Pharma, Paisalo Digital, DIC India and Gulshan Polyols.
Stocks signalling weakness ahead The MACD showed bearish signs on the counters of ICICI Bank, Bank of Baroda, HDFC Bank, Cholamandalam Investment, Shriram Transport, Jammu & Kashmir Bank, Adani Enterprises, PTC India, Jindal Saw, Spencer's Retail, Karur Vysya Bank, Jump Networks, Oil India, Rites, Gujarat Pipavav Port, Future Supply Chain, Jagran Prakashan, Texmaco Rail & Engg, Tata Steel, HDFC AMC, Polycab India, Greaves Cotton, Westlife Development, Godrej Agrovet, SPIC, Walchandnagar, Info Edge (India), Bigbloc Construction, Sumeet Industries, Hubtown, AksharChem (India), Indian Hume Pipe, ABB India, Deccan Cements, Vidhi Specialty Food, Somi Conveyor, Lokesh Machines, Vardhman Textiles, TCI Ltd and Tata Metaliks, among others.
Most active stocks in value terms RIL (Rs 6186.70 crore) , Bajaj Finance (Rs 4309.64 crore) , HDFC Bank (Rs 1623.88 crore) , Indiabulls Housing Finance (Rs 1327.22 crore) , SBI (Rs 1204.91 crore) , ICICI Bank (Rs 1158.01 crore) , HUL (Rs 1029.22 crore) , Bharti Airtel (Rs 947.55 crore) , Axis Bank (Rs 935.99 crore) and Tata Motors (Rs 896.10 crore) were among the most active stocks on Dalal Street in value terms.
Most active stocks in volume terms Vodafone Idea (shares traded: 37.68 crore) , Future Consumer (shares traded: 9.98 crore) , SAIL (shares traded: 9.22 crore) , Tata Motors (shares traded: 8.19 crore) , YES Bank (shares traded: 7.00 crore) , SBI (shares traded: 6.19 crore) , Uttam Value Steel (shares traded: 6.12 crore) , Indiabulls Housing Finance (shares traded: 5.44 crore) , BHEL (shares traded: 4.47 crore) and Alok Industries (shares traded: 3.45 crore) were among the most traded stocks in the session.
Stocks seeing buying interest BASF India, IOL Chemicals, Dr. Lal Pathlabs, Suven Pharma and Tata Communications witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Monday signalling bullish sentiment.
Stocks seeing selling pressure Norben Tea & Exports, Touchwood Entertainment, Mittal Life Style and Omaxe witnessed strong selling pressure in Monday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bears Overall, market breadth remained in favour of bears. As many as 209 stocks on the BSE 500 index settled the day in green, while 286 settled the day in red.
Podcast: Is Nifty signalling loss of momentum? After rallying 430 points during the day, BSE Sensex gave up most of its gains to settle just 99 points higher at 36,693. While Nifty hit a hurdle at its 200-DMA at 10,890 and closed 10,815.In the broader market, midcaps and smallcaps underperformed the largecaps. Some analysts believe the market is hoping for further stimulus measures from RBI on expectations of a softening of inflation. Others said technical charts are signalling trend reversal. How long will the momentum sustain on Dalal Street? Listen in >>>
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