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

    Synopsis

    The MACD showed bearish signs on the counters of SAIL, Indiabulls Real Estate, Coffee Day, Hindustan Copper and HDFC Life Insurance, among others

    Market outlook for TuesdayANI
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of ITC, Va Tech, NCC, IIFL Finance and Godfrey Phillips, among others.
    NEW DELHI: Benchmark indices ended flat on the first trading day of the pivotal week as investors keenly await the US Fed Reserve’s policy decision due on December 14. Meanwhile, broader markets, relatively performed better and ended with gains.

    Here's how analysts read the market pulse:

    “Indian benchmark Indices ended near the previous close in the volatile session. Nifty opened nearly 100 points lower on the back of weak global cues. However, it managed to stage a handsome recovery of more than 150 points to end the day near the previous close. Nifty ended the day up by 1 point at 18,497. Bank Nifty continued its outperformance by gaining 0.20% to close at yet another all-time high levels,” said Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities.

    “After showing sharp weakness on Friday, the downside momentum continued in the Nifty in the early part of Monday's session, but the market was able to show smart upside recovery from the intraday lows towards the end. After opening with a weak note, the market slipped into further declines soon after the opening,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

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

    US market
    US stocks rose at the start of a crucial week for monetary-policy decisions from the Federal Reserve, European Central Bank and a host of their peers. The S&P 500 and the Nasdaq 100 rose after fluctuating earlier in the session. Treasuries advanced, with the 10-year yield around 3.54%. The dollar was little changed. Investors are looking for firmer clues on how far and fast central banks will tighten monetary policy from here on as recession fears resurface. US Treasury yields were steady on Monday. The Dow Jones Industrial Average (.DJI) rose 0.55%, the S&P 500 (.SPX) gained 0.27%, and the Nasdaq Composite (.IXIC) added 0.07%.

    European shares
    European shares fell on Monday, as investors braced for interest rate decisions from the US Federal Reserve and the European Central Bank due this week, while rising COVID-19 infections in China after restrictions were eased also weighed on sentiment. The continent-wide STOXX 600 index was down 0.4% at 0805 GMT. The index posted its first weekly drop after a seven-week rally on Friday, as fears of an impending global recession from aggressive rate hikes countered optimism around the easing of strict COVID-19 curbs in China. London Stock Exchange rose 4.5% after Microsoft agreed to buy about 4% equity stake in the UK bourse operator as part of a deal to migrate its data platform into cloud.

    Tech View: Positive candle
    A reasonable positive candle was formed on the daily chart, which signalled a comeback of bulls after a minor downward correction. After the downside breakout of 18,500-18,550 levels on Friday, Nifty not showing any sharp follow-through weakness on Monday could signal chances of false downside breakout at the said resistance.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of ITC, Va Tech, NCC, IIFL Finance and Godfrey Phillips, among others.

    The MACD is known for signalling 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 SAIL, Indiabulls Real Estate, Coffee Day, Hindustan Copper and HDFC Life Insurance, 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
    Yes Bank (Rs 165 crore), Suzlon Energy (Rs 62 crore), JP Power (Rs 59 crore), PNB (Rs 57 crore) and HDFC Bank (Rs 53 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
    Yes Bank (Shares traded: 7.97 crore), JP Power (Shares traded: 7.23 crore), Suzlon Energy (Shares traded: 6.2 crore), Vodafone Idea (Shares traded: 4.98 crore) and PNB(Shares traded: 0.98 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of Punjab and Sind Bank, Star Cement, IIFL Finance and Blue Star witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

    Stocks seeing selling pressure
    Shares of Rossari Biotech hit their 52-week lows on Tuesday, which signals bearish sentiment on the counter.

    Sentiment meter favours bears
    Overall, market breadth favoured bears as 1,746 stocks ended in the green, while 1,867 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)




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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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