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

    Synopsis

    “Domestic sentiments were dented in line with global peers after the Bank of Japan (BoJ), in a surprise move, raised interest rate by 25 bps to 0.5%. Further, rising death cases in China after easing Covid-19 restrictions instilled more fear. Nifty opened the gap down and witnessed selling pressure for the most of the session," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

    Ahead of Market: 10 things that will decide D-St action on WednesdayAgencies
    Indian shares pared most of the losses in the final hour of a volatile session on Tuesday, helped by a rebound in information technology stocks, while recession worries and a surge in Covid-19 cases in China continued to dampen sentiment.

    The Nifty 50 index closed 0.19% lower at 18,385.30 and the S&P BSE Sensex lost 0.17% to 61,702.29.

    Here's how analysts read the market pulse:
    “Nifty witnessed a sustainable upside bounce from the intraday lows on Tuesday. After opening with a downside gap of 80 points, the market slipped into further weakness in the early-mid part of the session. Sharp intraday upside recovery has emerged from the day's low of 18202 levels, and the market closed the day off the intraday lows,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.

    “Domestic sentiments were dented in line with global peers after the Bank of Japan (BoJ), in a surprise move, raised interest rate by 25 bps to 0.5%. Further, rising death cases in China after easing Covid-19 restrictions instilled more fear. Nifty opened the gap down and witnessed selling pressure for the most of the session," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

    "The index recovered by almost 200 points from the lows in the last half an hour following a positive opening of dow futures which helped the Nifty finally close with a minor loss of just 35 points at 18385 levels. Buying was seen in a beaten down IT counter,” he added.

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

    US stocks slump
    Wall Street stocks saw a gloomy opening Tuesday with investors nervous about a growth slowdown and extending losses seen in Asia after Japan's central bank tightened policy.

    About 15 minutes into trading, the tech-rich Nasdaq Composite Index slumped 0.8 percent to 10,462.61, while the broad-based S&P 500 dipped 0.4 percent to 3,801.88. The Dow Jones Industrial Average dropped 0.2 percent to 32,707.76.

    European markets lower
    European shares fell on Tuesday, bogged down by real estate and technology stocks, after the Bank of Japan rattled global markets with a surprise policy shift that would allow long-term interest rates to rise more.

    The region-wide STOXX 600 index was down 0.9% by 0808 GMT, touching its lowest levels since Nov. 10.

    Tech View: Small positive candle
    A small positive candle formed on the daily chart with a long lower shadow. Technically, this pattern indicates an emergence of buying interest from the lower levels. The candle pattern of Tuesday signals a formation of a bullish hammer pattern that is placed beside the long positive candle of the previous session.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade RHI Magnesita among others.

    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 signaling weakness ahead
    The MACD showed bearish signs on the counters of South Indian Bank, TV18 Broadcast, RCF, Indian Hotels and M&M Financial, among others. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

    Most active stocks in value terms
    Adani Enterprises (Rs 1,559 crore), Infosys (Rs 1,109 crore), Axis Bank (Rs 900 crore ) and RIL (Rs 894 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 the highest trading turnovers in the day.

    Most active stocks in volume terms
    Suzlon Energy (Shares traded: 42.58 crore), Yes Bank (Shares traded: 29.45 crore), IRFC (Shares traded: 18.12 crore), and JP Power (Shares traded: 13.50 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of PNB Housing, JK Paper, IIFL Finance, Adani Enterprises and Tube Investments, among others, witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

    Stocks seeing selling pressure
    Shares of Sterling and Wilson, Gland Pharma, Nykaa, Piramal Pharma and Sunteck Realty hit their 52-week lows on Tuesday, which signals a bearish sentiment on the counter.

    Sentiment meter favours bears
    Overall, market breadth favoured bears as 1,597 stocks ended in the green, while 1,940 names settled with cuts.

    (With inputs from agencies)

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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