Nirali Shah of Samco Securities said the index has established short-term support at 15,500 level, and a breach of this level will raise the red flag to the ongoing uptrend.
iStockIndia VIX fell 4.55 per cent from 13.56 to 12.94 level. Declines in the VIX after a spurt in the last session have provided some stability to the market.
NEW DELHI: Asian stock markets started the week on a high note after US indices chalked fresh record highs. Investors were happy that last week's burst of bearishness had swung around in New York, sending wall Street higher and tempering the bull run in bonds.
At 7:20 hours (IST), Nifty futures on the Singapore Exchange traded 70 points higher signalling a likely gap-up start for Dalal Street.
Let's have a look at the key factors influencing market mood this morning: US shares post record closing highs The three major US stock indexes rallied to record closing highs on Friday as financials and other economically focused sectors rebounded from a selloff sparked by growth worries earlier in the week. The Dow Jones Industrial Average rose 448.23 points, or 1.3 per cent, to 34,870.16, the S&P 500 gained 48.73 points, or 1.13 per cent, to 4,369.55 and the Nasdaq Composite added 142.13 points, or 0.98 per cent, to 14,701.92. For the week, the Dow is up 0.2 per cent, and the S&P 500 and Nasdaq each added 0.4 per cent.
Asia shares enjoy relief rally, but hurdles ahead Asian shares were enjoying a relief rally on Monday as record highs on Wall Street and policy easing in China helped calm some of the recent jitters on global growth, though plenty of potential pitfalls lay ahead this week. Early Monday, MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.4%, after shedding 2.3% last week.
Tech View: Nifty forms '3 Weeks Tight' chart pattern Nifty50 on Friday fell for the second session in a row. During the day, the NSE barometer tested its recent swing low at around 15,630, before recovering some ground by the end of the day. The index formed a small bearish candle, with a long wick, reflecting intraday buying. Analysts said the index is taking a breather and the upside looks capped for now. Since the last five weeks, Nifty50 has been caught in a trading range between 15,950 and 15,500 levels, said independent analyst Manish Shah. “This is ‘3 Week Tight’ chart pattern and within the context of the trend, we have a pause before the push,” he said.
F&O: Easing VIX offers some hope India VIX fell 4.55 per cent from 13.56 to 12.94 level. Declines in the VIX after a spurt in the last session have provided some stability to the market. On the options front, maximum Put Open Interest stood at 15,500 followed by 15,000 levels, while maximum Call OI was seen at 16,000 followed by 15,800 levels. Minor Call writing was seen at 15,700 and then 16,100 levels, while there was minor Put writing at 15,200 and then 15,300 levels. Options data suggested an immediate trading range between 15,500 and 15,900 levels.
Stocks showing bullish bias Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Jindal Stainless, IRB Infrastructure, Kitex Garments, D-Link (India), Just Dial, Bharti Airtel, Dhani Services, Max Ventures, Navkar Corporation, Religare Enterprises, Sutlej Textiles, Nectar Lifesciences, Rites, GHCL, Jindal Worldwide, Smartlink Holdings, Aegis Logistics, Bajaj Finserv, Filatex India, Vardhman Textiles, EIH, Balaji Telefilms, Jubilant Industries, Shalimar Paints, Kalyani Steel, Royal Orchid Hotels, HOV Services and Nalwa Sons Investment.
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 Suzlon Energy, ICICI Bank, Axis Bank, Shree Renuka Sugars, NRB Bearings, Dharani Sugars, Ramky Infrastructure, Quick Heal Technology, Syngene International, Tata Communications, ICICI Lombard General Insurance, Orient Abrasives, PI Industries, Suumaya Industries, JMC Projects, Triveni Turbine, DCM Shriram, Kaveri Seed Company, RPP Infra Projects, AIA Engineering, Dhanuka Agritech, Uttam Sugar Mills, Vinyl Chemicals, DCM Nouvelle, Praxis Home Retail, Wendt India, The United Nilgiri and Welspun Investments. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Friday's most active stocks in value terms Tata Steel (Rs 2,179.54 crore), TCS (Rs 2,057.43 crore), Tata Motors (Rs 1,493.60 crore), Adani Ports SEZ (Rs 1,082.91 crore), Just Dial (Rs 1,011.61 crore), Bajaj Finserv (Rs 1,006.06 crore), Bajaj Finance (Rs 886.82 crore), RIL (Rs 865.38 crore), HDFC Bank (Rs 805.09 crore) and Granules India (Rs 746.94 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 the highest trading turnovers in the day.
Friday's most active stocks in volume terms Reliance Communication (Shares traded: 23.49 crore), Vodafone Idea (Shares traded: 17.90 crore), JP Power (Shares traded: 9.34 crore), YES Bank (Shares traded: 6.71 crore), Suzlon Energy (Shares traded: 5.03 crore), Tata Motors (Shares traded: 4.88 crore), BHEL (Shares traded: 4.62 crore), PNB (Shares traded: 4.51 crore), Dish TV India (Shares traded: 4.32 crore) and SAIL (Shares traded: 3.60 crore) were among the most traded stocks in the session.
Stocks showing buying interest Macrotech Developers, Jindal Stainless, IRB Infra Development, Hinduja Global and Tide Water Oil witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure Uttam Galva Steels and RIL (PP) witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls Overall, the market breadth remained in favour of the bulls. As many as 264 stocks on the BSE500 index settled the day in the green, while 226 settled the day in the red.
Podcast: What should Nifty Bank traders do? Bank stocks are again witnessing some pressure on D-Street. What should Nifty Bank traders do now? Is the market likely to correct more in the coming days? What are the Nifty charts suggesting? Will Q1 earnings numbers disappoint this time?
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