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

In a lacklustre session amid the absence of any major domestic cues, headline indices Nifty and Sensex ended flat on Tuesday. Buying was, however, seen in the broader market with metals and PSU bank stocks in demand.

Here's how analysts read the market pulse:

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said in this week's ECB policy meeting, members are likely to take up front-loading of rate hikes. Market participants will also be keeping an eye on the EU energy ministers meeting scheduled later this week to discuss measures to tame spiralling natural gas prices, he said.

Ruchit Jain, Lead Research, 5paisa.com, said the intraday support in Nifty for the coming session is placed around 17,573 and 17,491, while resistances will be seen around 17,750 and 17,845.

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

US stocks continue selloff
Wall Street stocks were lower on Tuesday, extending a rough patch for equities amid Federal Reserve monetary tightening and worries over a European energy crunch. About 30 minutes into trading, the Dow Jones Industrial Average was down 0.7 percent at 31,089.28.

The broad-based S&P 500 dropped 0.8 percent to 3,893.84, while the tech-rich Nasdaq Composite Index shed 1.1 percent to 11,499.53.

European markets nudge higher
Europe's stock markets and Britain's pound both clawed higher on Tuesday as the rampant surge in gas prices stalled, though it could not stop bond market borrowing costs rising again or save the Japanese yen from a new 24-year low.

The euro was sliding again having failed to get back above parity against the dollar. The STOXX 600's bounce remained a modest 0.5%, while a dip in euro zone bond yields sparked by the ECB chatter did not stop US, British and other European ones from climbing again.

Tech View: Bearish candle
Nifty formed a small-bodied Bearish candle on the daily scale and has been making higher lows from the last five sessions.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Gujarat Alkalie, Apollo Tyres, Varun Beverages, Apollo Hospital, V-Guard and Thyrocare.

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 Coal India, UTI AMC, Bank of India, Quess Corp, MMTC and Max Financial.

A 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 1,304 crore), HDFC Bank (Rs 917 crore), ICICI Bank (Rs 875 crore), Bajaj Finserv (Rs 870 crore), Bharti Airtel (Rs 769 crore), and Tata Steel (Rs 639 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
Tata Steel (Shares traded: 5.9 crore), NTPC (Shares traded: 2.8 crore), ITC (Shares traded: 1.2 crore), ONGC (Shares traded: 1.1 crore), Power Grid (Shares traded: 1.1 crore) and Bharti Airtel (Shares traded: 1.1 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of GMM Pfaudler, Apollo Tyres, Tata Investment, Brigade Enterprises, Varun Beverages, Aster DM Health and Ceat witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of Mphasis, Mastek and Biocon were among those that witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bears
Overall, market breadth favoured losers as 1,712 stocks ended in the green, while 1,745 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)