Ahead of Market: 10 things that will decide stock action on Wednesday

The domestic stock market today ended on a positive note for the fifth straight day with IndusInd Bank and Asian Paints among the top Nifty gainers. Realty and IT stocks were out of favour. India VIX ended 6 per cent higher.

Here's how analysts read the market pulse:

Ruchit Jain, Lead Research, 5paisa.com, said the immediate support for Nifty is placed around 17,200 below which the index could test 17,000 level. On the flipside, 17,350-17,400 is the immediate resistance zone.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the overall chart pattern of the Nifty signals minor downward correction or consolidation movement for the next 1-2 sessions before showing another round of upside bounce from the lows.

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

US market

Stocks fell broadly in morning trading on Wall Street Tuesday as investors reviewed the latest corporate earnings for clues on inflation's ongoing impact.

Wall Street is also closely monitoring rising tensions between the U.S. and China. US House Speaker Nancy Pelosi is possibly visiting Taiwan, and China has warned of “serious consequences” if the trip to the island that it considers its own territory goes ahead.

The S&P 500 index fell 0.6% as of 10:26 a.m. Eastern. The Dow Jones Industrial Average fell 282 points, or 0.9%, to 32,506 and the Nasdaq fell 0.6%.

European shares

France's CAC 40 slipped 0.5% in early trading while Germany's DAX fell 0.6%. Britain's FTSE 100 inched up 0.1%.

Tech View: Upside capped at 17,500

Nifty50 formed an indecisive candle on the daily chart suggesting indecisiveness among traders ahead of the RBI policy review. Analysts see the upside capped at 17,500. They see support around the 17,200 level.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Zomato, BEML, Lux Industries, Oracle, JK Lakshmi Cement and CSB Bank.

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 Blue Star, City Union Bank, Solar Industries, Godrej Industries, CreditAccess Grameen and IIFL Finance.

Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms

RIL (Rs 1,659 crore), ITC (Rs 1,214 crore), HDFC Bank (Rs 1,076 crore), SBI (Rs 911 crore), Bajaj Finance (Rs 910 crore), and ICICI Bank (Rs 908 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

Tata Steel (Shares traded: 6.5 crore), ITC (Shares traded: 3.9 crore), Tata Motors (Shares traded: 1.9 crore), NTPC (Shares traded: 1.8 crore), SBI (Shares traded: 1.7 crore) and Hindalco (Shares traded: 1.5 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest

Shares of M&M, Maruti Suzuki, ITC and Coal India witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure

Shares of NAVA Ltd and ABM International witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bulls

Overall, market breadth favoured winners as 1,884 stocks ended in the green, while 1,487 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)