India's benchmark equity indices, Sensex and Nifty50, gave up early gains and ended in the red on Tuesday, dragged down by index heavyweight Reliance Industries, financial, and IT stocks. A hotter-than-expected September inflation print dampened hopes of a domestic rate cut this year, weighing further on investor sentiment.
The BSE Sensex fell 153 points, or 0.19%, to close at 81,820, while the NSE Nifty dropped 70 points, or 0.28%, to end at 25,057.
Here's how analysts the market pulse:
"The Nifty remained volatile throughout the day but sustained above the 21 EMA on the daily timeframe. A fall below this level could increase weakness, with the possibility of Nifty dropping below 24,900. If Nifty falls below 24,900, it may trigger a further correction towards 24,700. On the higher side, resistance is seen at 25,200," said Rupak De of LKP Securities.
Jatin Gedia of Sharekhan, said, "On the daily charts we can observe that the nifty has been trading around the 40-day average (25150) since the last five trading sessions. we expect this consolidation to breakout on the upside and target levels 25,360 – 25,500. On the downside, 24,920 – 24,900 is the crucial support zone."
That said, here’s a look at what some key indicators are suggesting for Wednesday's action:
US market:
On Tuesday, the S&P 500 and Nasdaq saw slight gains, while the Dow declined, as the benchmark index remained close to record highs amid mixed quarterly results from companies like UnitedHealth and Bank of America.Among the S&P 500 sectors, eight out of eleven saw upward movement, with Financials leading the way with a 0.6% gain, buoyed by positive earnings reports from several major banks, following last week’s strong results from JPMorgan Chase.
European stocks:
European stocks pulled back from Monday’s two-week high, weighed down by declines in mining and energy sectors. Investors remained focused on corporate earnings and the upcoming European Central Bank's rate decision on Thursday.
MSCI’s global stock gauge decreased by 3.29 points, or 0.36%, to 854.06. The STOXX 600 index fell 0.55%, while the FTSEurofirst 300 dropped 13.20 points, or 0.63%.
Tech View:
A reasonable negative candle was formed on the daily chart with minor upper and lower shadows, technically indicating the presence of crucial resistance around 25,200 and the expectation of further range-bound movement in the short term.
The short-term trend of Nifty continues to be choppy and the market is now placed within a broader range of 25,200-24,900 levels. A decisive move above 25,200 levels could open the next upside of around 25,500-25,600 levels in the near term. Immediate support is placed at 24,900 levels, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,200 and 25,100 strike prices, while on the put side, the highest OI was at 25,000 strike price followed by 24,900.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Kaynes Technology, LTIMindtree, OFSS, Persistent Systems, Anant Raj, CAMS, and Oberoi Realty 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 Ajanta Pharma, Tega Industries, Tips Films, Marsons, and CMS Info Systems 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:
Angel One (Rs 6,416 crore), RIL (Rs 4,572 crore), Mazagon Dock Shipbuilders (Rs 2,235 crore), BSE (Rs 1,997 crore), HDFC Bank (Rs 1,654 crore), ICICI Bank (Rs 1,458 crore), and Motilal Oswal (Rs 1,423 crore) among others 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:
JP Power (Shares traded: 7.8 crore), YES Bank (Shares traded: 4.3 crore), Suzlon Energy (Shares traded: 4.2 crore), Tata Steel (Shares traded: 3.8 crore), Network18 Media (Shares traded: 3.4 crore), TV18 Broadcast (Shares traded: 3.1 crore), and JM Financial (Shares traded: 3 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Motilal Oswal, Vijaya Diagnostic, Five-Star Business Finance, Apar Industries, Usha Martin, Ramkrishna Forgings, and JM Financial among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
Shares of CreditAccess Grameen hit their 52-week lows, signaling bearish sentiment on the counter.
Sentiment meter bulls:
No major shares hit their 52-week lows on Tuesday.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
The BSE Sensex fell 153 points, or 0.19%, to close at 81,820, while the NSE Nifty dropped 70 points, or 0.28%, to end at 25,057.
Here's how analysts the market pulse:
"The Nifty remained volatile throughout the day but sustained above the 21 EMA on the daily timeframe. A fall below this level could increase weakness, with the possibility of Nifty dropping below 24,900. If Nifty falls below 24,900, it may trigger a further correction towards 24,700. On the higher side, resistance is seen at 25,200," said Rupak De of LKP Securities.
Jatin Gedia of Sharekhan, said, "On the daily charts we can observe that the nifty has been trading around the 40-day average (25150) since the last five trading sessions. we expect this consolidation to breakout on the upside and target levels 25,360 – 25,500. On the downside, 24,920 – 24,900 is the crucial support zone."
That said, here’s a look at what some key indicators are suggesting for Wednesday's action:
US market:
On Tuesday, the S&P 500 and Nasdaq saw slight gains, while the Dow declined, as the benchmark index remained close to record highs amid mixed quarterly results from companies like UnitedHealth and Bank of America.Among the S&P 500 sectors, eight out of eleven saw upward movement, with Financials leading the way with a 0.6% gain, buoyed by positive earnings reports from several major banks, following last week’s strong results from JPMorgan Chase.
European stocks:
European stocks pulled back from Monday’s two-week high, weighed down by declines in mining and energy sectors. Investors remained focused on corporate earnings and the upcoming European Central Bank's rate decision on Thursday.
MSCI’s global stock gauge decreased by 3.29 points, or 0.36%, to 854.06. The STOXX 600 index fell 0.55%, while the FTSEurofirst 300 dropped 13.20 points, or 0.63%.
Tech View:
A reasonable negative candle was formed on the daily chart with minor upper and lower shadows, technically indicating the presence of crucial resistance around 25,200 and the expectation of further range-bound movement in the short term.
The short-term trend of Nifty continues to be choppy and the market is now placed within a broader range of 25,200-24,900 levels. A decisive move above 25,200 levels could open the next upside of around 25,500-25,600 levels in the near term. Immediate support is placed at 24,900 levels, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,200 and 25,100 strike prices, while on the put side, the highest OI was at 25,000 strike price followed by 24,900.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Kaynes Technology, LTIMindtree, OFSS, Persistent Systems, Anant Raj, CAMS, and Oberoi Realty 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 Ajanta Pharma, Tega Industries, Tips Films, Marsons, and CMS Info Systems 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:
Angel One (Rs 6,416 crore), RIL (Rs 4,572 crore), Mazagon Dock Shipbuilders (Rs 2,235 crore), BSE (Rs 1,997 crore), HDFC Bank (Rs 1,654 crore), ICICI Bank (Rs 1,458 crore), and Motilal Oswal (Rs 1,423 crore) among others 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:
JP Power (Shares traded: 7.8 crore), YES Bank (Shares traded: 4.3 crore), Suzlon Energy (Shares traded: 4.2 crore), Tata Steel (Shares traded: 3.8 crore), Network18 Media (Shares traded: 3.4 crore), TV18 Broadcast (Shares traded: 3.1 crore), and JM Financial (Shares traded: 3 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Motilal Oswal, Vijaya Diagnostic, Five-Star Business Finance, Apar Industries, Usha Martin, Ramkrishna Forgings, and JM Financial among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
Shares of CreditAccess Grameen hit their 52-week lows, signaling bearish sentiment on the counter.
Sentiment meter bulls:
No major shares hit their 52-week lows on Tuesday.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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