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

NEW DELHI: After three days of losses, the domestic benchmark equities gathered some support, with the Nifty ending above the 17,600 mark. Broader markets, however, underperformed, with Nifty Midcap ending the session almost flat.

Here's how analysts read the market pulse:

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said: "Markets are likely to remain range bound ahead of the US Fed interest rate decision to be announced on 21st September (Wednesday). While it is widely expected that the Fed will go for at least a 75 basis points hike, given the stubbornness of US inflation and robust numbers from US data points like retail sales and a strong labor market, there is a high chance that the aggressive stance towards rate hike is likely to continue for a prolonged time.”

Rupak De, Senior Technical Analyst at LKP Securities, said: "Nifty remained range-bound as investors await the FOMC outcome, due this week. On the lower end, Nifty found support above 17400, whereas bears protected the 17700 mark. The trend is likely to remain sideward over the near term. Support is placed at 17,350-17,400, and a fall below 17,350 may trigger a correction towards 17,000. On the higher end, 17700 may act as crucial resistance.”

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

Wall Street opens lower
US stocks opened lower Monday as bond rates continued to rise ahead of a Fed meeting expected to lead to a new rate hike, stoking fears among traders of a hard landing for the country's economy.

Around 1400 GMT, the Dow Jones was down 0.35 percent, the Nasdaq lost 0.37 percent and the broader S&P 500 0.41 percent.

European stocks rebound
European shares bounced back after the broad STOXX index slid as much as 1% to a more than 10-week low, dragged down by rate-sensitive tech stocks and French shares which were hurt by the collapse of a planned merger between two TV companies.
The STOXX was last up 0.04%.

Tech View: Hammer-like candle
The Nifty50 formed a Hammer-like candle on the daily charts, a bullish sign provided we see a follow-through in Tuesday’s session as well. A Hammer is formed after a price decline. It has a small real body and a long lower shadow.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Triveni Turbine, Manaksia Aluminum, Wonderla Holidays, Prism Johnson etc. 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 Vodafone Idea, ICICI Bank, Trident, Jindal Steel, Exide Industries and Indian Bank.

A bearish crossover on MACD on these counters indicated that they had just begun their downward journey.

Most active stocks in value terms
Ambuja Cements (Rs 4,199 crore), Bajaj Finance (Rs 1,227 crore), Adani Enterprises (Rs 1,164 crore) and ICICI Bank(Rs 1,015 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
Vodafone Idea (Shares traded: 10.81 crore), YES Bank (Shares traded: 10.30 crore), PNB (Shares traded: 8.36 crore), Ambuja Cements (Shares traded: 7.577 crore) and Zomato (Shares traded: 7.04 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Meghmani Fine, Ambuja Cements, India Cements, Escorts etc witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of SIS India, Birlasoft, Metropolis, Piramal Enterprises and Mastek, among others, witnessed strong selling pressure and hit their new 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bears
Overall, market breadth favoured losers as 1,973 stocks ended in the red, while 1,655 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)