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

    Synopsis

    Indian equities snapped a two-day losing streak, with the Nifty ending above 18,600 points on Monday, driven by positive global cues and optimistic expectations surrounding India's economic growth. Sectors including IT and real estate were among the major gainers.

    Ahead of Market: 10 things that will decide D-Street action on TuesdayiStock
    Snapping 2-day losing streak, Indian equities ended in the green with Nifty settling above 18,600 points on Monday. The positive sentiment was aided by encouraging commentary about India’s economic growth as well as positive global cues. Majority of the sectors ended in green with IT, Real Estate being major gainers. Tuesday’s market sentiment will be dictated by retail inflation print and IIP numbers.

    From the Nifty pack, top gainers included stocks like BPCL, HCL Technologies, Infosys, NTPC and Adani Enterprises.

    Here's how analysts read the market pulse:

    “The domestic indices are moving with caution as investors step up to a data-loaded week both in the domestic and global markets. However, the expectations are optimistic, like the Indian CPI data is forecasted to moderate and the Fed & BoJ are expected to maintain their policy rates. Other major events on the centre stage are domestic IIP, WPI inflation, and policy announcements from ECB. The market anticipates ECB to increase their rates further while recessionary risk is rising,” said Vinod Nair, Head of Research at Geojit Financial Services.

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

    US market
    Wall Street's main indexes rose on Monday as investors awaited inflation data and the Federal Reserve's interest rate decision this week, while Oracle Corp hit a record high ahead of its quarterly results later in the day.

    At 9:43 am ET, the Dow Jones Industrial Average was up 115.88 points, or 0.34%, at 33,992.66, the S&P 500 was up 12.75 points, or 0.30%, at 4,311.61, and the Nasdaq Composite was up 62.98 points, or 0.47%, at 13,322.12.

    Nasdaq Inc slumped 9.8% after the exchange operator said it would buy Thoma Bravo-owned software firm Adenza for $10.5 billion.

    European shares
    European stocks rose in early trading on Monday and world stocks were just below 13-month highs ahead of key inflation data and U.S. Federal Reserve and European Central Bank meetings later in the week.

    After lacking direction during Asian trading, market sentiment picked up in early European trading, as investors waited for U.S. CPI data due on Tuesday.

    At 0845 GMT, the MSCI World Equity index was up 0.2% on the day, holding just below a recent 13-month high, while MSCI's Europe index was up 0.8%.

    Europe's STOXX 600 was up 0.5% and London's FTSE 100 was up 0.3%.

    Tech View: Doji candle
    Nifty On Monday formed a Doji candle on the daily chart where a small positive candle with minor upper and lower shadow was noticed. Now it has to cross and hold above 18,636-18,676 zones to witness an up move towards 18,777 and 18,888 zones while on the downside support exists at 18,550 and 18,480 zones, says Chandan Taparia of Motilal Oswal.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Delhivery, Mirc Electronics, Petronet LNG and Apollo Tyres, 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 Tata Consumer Products, Central Bank, Jai Corp, Policy Bazar and Karnataka Bank 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
    HAL (Rs 1,468 crore), HDFC Bank (Rs 1076 crore), Go Fashion (Rs 1059 crore), ICICI Bank (Rs 987 crore ), and HDFC (Rs 866 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
    Suzlon Energy (Shares traded: 46.13 crore), Reliance Power (Shares traded: 35.08 crore), Zomato ( 10.54 crore) and Vodafone Idea (Shares traded: 9.47 crore),among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of GRSE, Suzlon Energy, Usha Martin, Prestige Estate and Olectra Greentech witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

    Stocks seeing selling pressure
    Shares of Aavas Financiers, Jet Knitwears and JBF Industries hit their 52-week lows, signaling bearish sentiment on the counters.

    Sentiment meter favours bulls
    Overall, market breadth favoured bulls as 2,092 stocks ended in the green, while 1,632 names settled with losses.

    (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, Budget 2024 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 .)

    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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