Ajit Mishra of Religare Broking said, the rebound in Nifty indicates that the prevailing consolidation phase will continue.
iStockNagaraj Shetti of HDFC Securities said, the upside bounce of Tuesday could be another evidence of comeback of bulls after a sharp weakness.
NEW DELHI: As Nifty reversed most of the previous session's losses on Tuesday, it formed a bullish candle on the daily chart.
Nagaraj Shetti of HDFC Securities said, the upside bounce of Tuesday could be another evidence of comeback of bulls after a sharp weakness.
"As happened in the past, one may expect further upside in the market for the short term and possible retest of the 12,000 mark in the next few sessions. Immediate support is placed at 11,710 levels," he said.
Ajit Mishra of Religare Broking said, the rebound in Nifty indicates that the prevailing consolidation phase will continue.
"Meanwhile, markets are offering trading opportunities across the board and traders should proactively manage their positions in such a scenario. Investors, on the other hand, should not give much weightage to these short term price fluctuations and maintain their focus on accumulating fundamentally sound stocks on dips," he said.
Manish Hathiramani of Deen Dayal Investments said, Nifty needs to cross 11,900-11,950 in order to generate early buy signals and thereafter the index can be expected to achieve 12,200-12,300.
"Breaking of 11,700 would indicate a fresh wave of sells, which could drive the index down to 11,400-11,450," he said.
That said here’s a look at what some of the key indicators are suggesting for Wednesday's action: US stocks flat after Monday's selloff The S&P 500 was little changed on Tuesday after a sharp pull back in the prior session as investors parsed through a slew of mixed corporate earnings, while awaiting progress on U.S. fiscal stimulus. The Dow Jones Industrial Average was down 71.97 points, or 0.26%, at 27,613.41, the S&P 500 was down 0.95 points, or 0.03%, at 3,400.02. The Nasdaq Composite was up 53.17 points, or 0.47%, at 11,412.11.
European shares extend losses as virus fears dominate European stocks extended losses on Tuesday, as worries about the economic fallout of tighter coronavirus restrictions in the continent countered gains from upbeat results from UK blue-chip companies HSBC and BP. The pan-European STOXX 600 index fell 0.9% after closing at a one-month low on Monday, when markets were hammered by rising infections in the United States and Europe and fading hopes of a stimulus package before the U.S. presidential election.
Tech View: Nifty forms bullish candle Nifty50 made a smart recovery on Tuesday and took out the immediate resistance at 11,800 level at the opening bell itself. The index closed near the day's high of 11,899 and formed a bullish candle on the daily chart. The gains were seen even as Monday's long bearish candle suggested selling pressure ahead. "In the last few sessions, the formation of long bear candles did not lead to any reasonable follow-through decline," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
F&O: VIX needs to cool down further India VIX fell 2.78 per cent from 22.83 to 22.19 level. Volatility needs to cool down below 20 mark for the market to stabilise and keep in account any spike ahead of the US election. Options data suggested an immediate trading range between 11,700 and 12,000 levels.
Stocks showing bullish bias Momentum indicator Moving Average Convergence Divergence (MACD) on Tuesday showed bullish trade setup on the counters of Tata Consumer, Asian Paints, Snowman Logistics, Exide Industries, Colgate Palmolive, Ipca Laboratories, NIIT, Pidilite Industries, ICICI Securities, Gujarat Gas, Surya Roshni, Vinyl Chemicals, Vivimed Labs, Sadbhav Infrastructure, Balaji Amines, Manaksia, Gabriel India, Heritage Foods, Sanco Industries, Emkay Global, Khandwala Securities, Dhanuka Agritech, Muthoot Capital, Thangamayil Jeweller, Sheela Foam, Savita Oil Tech, WABCO India, TPL Plastech, Vindhya Telelink, Uniphos Enterprises, Orient Press and Vardhman Holdings among others.
Stocks signalling weakness ahead The MACD showed bearish signs on the counters of Grasim Industries, India Cements, Redington (India), Sudarshan Chem, S H Kelkar & Company, GIC Housing, Parag Milk Foods, Gokaldas Exports, Alpa Laboratories, Adani Transmission, SRF, Apex Frozen Foods, GSS Infotech, AYM Syntex, Expleo Solutions, Somany Ceramics, Vishwaraj Sugar and Kilitch Drugs among others.
Tuesday’s most active stocks Kotak Bank (Rs 5126.24 crore), RIL (Rs 3410.85 crore), Bajaj Finance (Rs 2042.89 crore), HDFC Bank (Rs 1479.42 crore), ICICI Bank (Rs 1361.48 crore), Axis Bank (Rs 1208.03 crore), Infosys (Rs 1108.19 crore), Asian Paints (Rs 1076.57 crore), Maruti Suzuki (Rs 1043.66 crore) and TCS (Rs 938.88 crore) were among the most active stocks on Dalal Street on Tuesday in value terms.
Tuesday’s most active stocks in volume terms YES Bank (shares traded: 9.66 crore), NTPC (shares traded: 9.54 crore), Vodafone Idea (shares traded: 7.51 crore), Ashok Leyland (shares traded: 6.14 crore), Tata Motors (shares traded: 5.68 crore), ITC (shares traded: 4.59 crore), BHEL (shares traded: 4.05 crore), SBI (shares traded: 3.78 crore), Federal Bank (shares traded: 3.73 crore) and PNB (shares traded: 3.73 crore) were among the most traded stocks in the session.
Stocks seeing buying interest Ipca Labs, ACC, Thyrocare Technologies, Asian Paints and Ambuja Cements witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Tuesday signalling bullish sentiment.
Stocks seeing selling pressure Archidply Decor, Mittal LifeStyle, Sintercom India, Hemisphere Properties India and GE Power India witnessed strong selling pressure in Tuesday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls Overall, market breadth remained in favour of bulls. As many as 268 stocks on the BSE 500 index settled the day in green, while 229 settled the day in red.
Podcast: Can D-Street hold on to Tuesday’s gains? >>> Benchmark equity indices defied global weakness and logged gains on Tuesday, led by banking stocks. The mood was also upbeat as MSCI is set to revise foreign ownership limits for India stocks from December, and Morgan Stanley expects $2.5 billion passive inflows into Indian stocks on the back of such revision. Sensex rose 0.94 per cent to 40,922, while Nifty ended at 11,889. We caught up with independent analyst Ambareesh Baliga to understand his thoughts on what is in store for the market.
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