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

In Tuesday’s choppy session, Nifty after opening 83 points higher ended near the day’s low, while still holding on to 18,110 levels. Bank Nifty remained below 43,000 levels. Sector-wise, the PSU Bank index broke its previous week’s low, while the Private Bank index remained steady.

Here's how analysts read the market pulse:

“Markets continued to remain indecisive, and this is the typical characteristic of the consolidation phase. Nifty’s broader trading band of 17,800-18,300 remains intact, hence decisive breakthrough above 18,300 is essential to regain required momentum on upside,” said Amit Trivedi, CMT, Technical Analyst - Institutional Equities, YES Securities.

“The short-term trend of Nifty continues to be range bound and this choppy movement within 18,200-18,000 levels is likely to continue for the next 1-2 sessions. The market is waiting for cues around the upcoming Union Budget 2023, which is scheduled on 1st Feb,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

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

US market
Wall Street stocks were mostly lower early Tuesday following two strong sessions as markets digested a trove of mixed earnings from industrial heavyweights. The results included a drop in profits from conglomerate 3M, pointing to weak demand in consumer-facing markets, and an upbeat report from defense contractor Raytheon Technologies, which has benefited from the comeback in its aerospace business.

About 25 minutes into trading, the Dow Jones Industrial Average was down 0.3 percent at 33,540.14.

The broad-based S&P 500 slipped 0.2 percent to 4,012.20, while the tech-rich Nasdaq Composite Index added 0.1 percent at 11,369.84.

European shares
The euro held near a nine-month high against the dollar on Tuesday, though European stocks eased after regional business activity data reinforced expectations that the European Central Bank (ECB) will raise rates by a further 50 basis points. Europe's broad Stoxx 600 index lost 0.4% after the numbers, which analysts said suggests the ECB can continue to raise rates to curtail inflation, without worrying too much about damaging growth.

Tech View: Long bear candle
Nifty on the daily chart formed a long bear candle, which indicates a continuation of range bound movement in the market. The high-low range of around 18,200 to 18,000 levels has been acting as a high low range over the last five sessions.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of GAIL, Bandhan Bank, Crompton Greaves, Nureca and Sona BLW Precision, 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 Ircon International, NMDC, MTNL, Rain Industries and Jindal Saw, among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms
HDFC Bank (Rs 2,114 crore), RIL (Rs 1,837 crore), Axis Bank (Rs 1,698 crore) and Tata Motors (Rs 1,268 crore) were among the most active stocks on the 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
Yes Bank (Shares traded: 15.8 crore), Vodafone Idea (Shares traded: 10.7 crore), Nykaa (Shares traded: 6.17 crore), PNB (Shares traded: 5.15 crore) and Zomato (Shares traded: 4.7 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of IIFL Wealth Management witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure
Shares of Gland Pharma, Indus Towers, Indigo Paints, Laurus Labs and Vodafone Idea among others hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bears
Overall, market breadth favoured bears as 2,043 stocks ended in the red while 1,482 names settled with gains.

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