The Economic Times daily newspaper is available online now.

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

    Synopsis

    Nifty on Monday ended 166 points lower to close below the 20-DMA and formed a lower top on the daily chart, which signalled diminishing bullish sentiment. A long bear candle was seen on the charts.

    Ahead of Market: 10 things that will decide D-Street action on TuesdayETMarkets.com
    Domestic equity indices declined on Monday, weighed down by broad-based profit booking, while small- and mid-caps extended their slide on rising concerns over high valuations.

    The NSE Nifty50 index was down 0.76% at 21,616, while the S&P BSE Sensex settled 0.73% lower at 71,072.

    Here's how analysts read the market pulse:

    "On the daily charts, we can observe that Nifty has closed below the 20-day moving average (21,684), which is a sign of weakness. The daily momentum indicator has triggered a negative crossover, which is a sell signal. Thus, both price and momentum indicators suggest weakness. The broader market witnessed a deep cut even on Monday. The Midcap index was down 2.57% and the Smallcap index cracked 4% on Monday. The crucial support zone for Midcap index is placed at 46960 – 46550 and that for the Small cap Index is placed at 15440 – 15400," Jatin Gedia – Technical Research Analyst at Sharekhan, said.

    Shrey Jain, Founder and CEO of SAS Online, said, "From a technical standpoint, the Nifty is encountering selling pressure, a trend anticipated to persist in the coming sessions. Monitoring the support zone between 21,500-21,450 is crucial to sustaining positive momentum. Additionally, the Nifty faces resistance at 21,850, potentially signalling a breakout point."

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

    US market


    Wall Street's main indexes were muted on Monday, with investors gearing up for two crucial inflation reports during the week for clues on the interest-rate cut outlook, while Nvidia surpassed Amazon in market value for the first time in two decades.

    Nvidia crossed above Amazon.com in market capitalization, as the euphoria around artificial intelligence catapulted the chipmaker to the fourth-most valuable U.S. company. Their shares were up 0.5% and 0.1%, respectively.

    At 9:51 a.m. ET, the Dow Jones Industrial Average was up 21.04 points, or 0.05%, at 38,692.73, the S&P 500 was up 1.20 points, or 0.02%, at 5,027.81, and the Nasdaq Composite was up 5.72 points, or 0.04%, at 15,996.38.

    European shares


    European shares climbed on Monday, buoyed by the momentum on Wall Street that propelled the S&P 500 to close above 5,000 for the first time, while investors assessed earnings and economic data for insights into the European Central Bank's rate outlook.

    The pan-European STOXX 600 rose 0.3% and hovered around its two-year highs, with all the sectors trading in the green.

    Italian stocks outperformed regional peers with a 0.6% increase, hitting their highest level since June, 2008.

    Rate-sensitive real estate shares led the gains among sectors, rising 1.2% and on track to log their best day in nearly three weeks.

    Tech View: Long bear candle


    Nifty on Monday ended 166 points lower to close below the 20-DMA and formed a lower top on the daily chart, which signalled diminishing bullish sentiment. A long bear candle was seen on the charts.

    The momentum indicator aligns with this bearish outlook, displaying a crossover. Nifty might remain in sell-on-rise mode as long as it remains below 21,850. On the downside, support is situated at 21,500, Rupak De of LKP Securities said.


    Stocks showing bullish bias


    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Carborundum Universal, Metro Brands, Atul, Grasim Industries, Siemens, and Ambuja Cements, 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 TTK Prestige, Persistent System, Granules India, Infosys, Apollo Tyres, and Escorts, among others. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.


    Most active stocks in value terms


    HDFC Bank (Rs 2,402 crore), Wipro (Rs 1,233 crore), RIL (Rs 968 crore), Axis Bank (Rs 910 crore), HCL Tech (Rs 814 crore), ONGC (Rs 804 crore), and ICICI Bank (Rs 802 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


    Tata Steel (Shares traded: 3.6 crore), ONGC (Shares traded: 3.1 crore), Wipro (Shares traded: 2.4 crore), Power Grid (Shares traded: 1.9 crore), HDFC Bank (Shares traded: 1.7 crore), NTPC (Shares traded: 1.1 crore), and ITC (Shares traded: 1 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest


    Shares of Dr Reddy's Laboratories, HCL Tech, Bajaj Auto, Apollo Hospitals, Sun Pharma, Grasim Industries, and Hero MotoCorp, among others, witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.


    Stocks seeing selling pressure


    Shares of Orient Electric, Deepak Fertilisers & Petrochemicals Corporation, Polyplex Corporation, GMM Pfaudler, and Vinati Organics hit their 52-week lows, signalling bearish sentiment on the counters.


    Sentiment meter favours bears


    Overall, market breadth favoured bears as 3,015 stocks ended with cuts, while 980 names settled in the green.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)


    (You can now subscribe to our ETMarkets WhatsApp channel)

    (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

    (You can now subscribe to our ETMarkets WhatsApp channel)

    (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
    The Economic Times

    Stories you might be interested in