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

    Synopsis

    Indian equity benchmarks Sensex and Nifty closed lower due to profit booking and heavyweights like ICICI Bank and Reliance Industries facing selling pressure, resulting in losses for many private banks. The PSU banks, however, saw the highest sectoral gains. Looking ahead, there may be more volatility as the Nifty has been witnessing significant swings in both directions for the past three trading sessions. In other global markets, European shares fell and the US was closed for Juneteenth on 19 June.

    Ahead of Market: 10 things that will decide D-Street action on TuesdayAgencies
    Equity benchmarks Sensex and Nifty pared early gains to close lower on Monday as investors offloaded telecom, power and utility stocks amid a bearish trend in global markets and profit booking. Intense selling in private bank counters like ICICI Bank and Kotak Bank also dragged the indices down, brokers said.

    Indian equities ended the first day of the week on a negative note dragged by heavyweight counters, including Reliance Industries and ICICI Bank. Sectorally, private banks’ pack led the losses, while PSU banks emerged as the top sectoral gainers.

    Here's how analysts read the market pulse:

    “Indian equities shied away from closing at all-time high levels amid profit booking, primarily driven by private banks. Global markets also took a breather after a strong rally last week as investors looked forward to China’s rate decision and the Fed Chair's testimony. The Indian rupee has been exhibiting strength recently, supported by strong FII inflows and favorable domestic macroeconomic data,” said Vinod Nair, Head of Research at Geojit Financial Services.

    “The Nifty opened on a positive note however as the day progressed it witnessed selling pressure and closed on a negative note. Since past three trading sessions the Nifty has been witnessing large swings in both directions and thus creating volatility. Increasing volatility is a sign of top or bottom and in this case the probability turns in favor of a top. However, it needs to be confirmed by a breach of the crucial support zone which currently stands at 18650 - 18600. Divergent signals from the daily and hourly momentum indicators are also adding to the confusion and thus inducing volatility.

    “Thus, we should brace up for more volatility in the coming trading sessions. Crucial support levels to keep handy are 18650 – 18600 and 18880 – 18900 is the crucial resistance level,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.

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

    US market
    US stock markets were closed on Monday in observance of Juneteenth on June 19. Juneteenth is a federal holiday in the US commemorating the emancipation of enslaved African Americans. It has derived its name from combining June and nineteenth. It is celebrated on the anniversary of the order by Major General Gordon Granger proclaiming freedom for enslaved people in Texas on June 19, 1865.

    European shares
    European shares fell on Monday, with Franco-German lab equipment maker Sartorius leading the declines, while investors cautiously awaited further stimulus measures from China to revive demand.

    The pan-European STOXX 600 index shed 0.6%, while Germany's DAX index dropped 0.6% after closing at a record high in the previous session.

    Shares of Sartorius plunged 16.6%, to the bottom of the STOXX 600, after the company cut its 2023 revenue and margin forecasts on Friday.

    Tech View: Bearish Dark Cloud Cover pattern
    “Nifty formed a bearish Dark Cloud Cover pattern on daily charts on June 19. However in the recent past, such formations have not seen any follow through. The Nifty gets pushed back as it tries to register a new life high. Nifty could face resistance from 18,888, while 18,669 could offer support in the near term,” Deepak Jasani, Retail Research-Head, HDFC Securities, said.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Bank of Baroda, HDFC Bank, HDFC Life, Jain Irrigation and Karnataka Bank 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 Axis Bank, Tata Motors, RBL Bank and Hindustan Copper 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
    Adani Enterprises (Rs 2770 crore), HDFC Bank (Rs 1994 crore), ICICI Bank (Rs 1786 crore), Kotak Bank (Rs 1392 crore), and( HDFC (Rs 1380 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
    Alok Industries (Shares traded: 16.60 crore), Suzlon Energy (Shares traded: 16.36 crore), Reliance Power (Shares traded: 13.61 crore), YES Bank (Shares traded: 12.72 crore), and IDFC First Bank (Shares traded: 8.23 crore) among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of Titagarh Wagons, Mishra Dhatu Nigam, PTC Industries and eClerx Services 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 Supreme Engineering, AG Universal, Kore Digital, MOS Utility and MK Proteins, among others, hit their 52-week lows, signaling bearish sentiment on the counters.

    Sentiment meter favours bears
    Overall, market breadth favoured bears as 1,668 stocks ended in the green, while 1,990 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)



    (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


    (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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