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

    Synopsis

    Nifty on Tuesday ended 49 points lower to once again form a Doji candle on the daily chart. The index is now in the process of retesting the breakout of 22,300 it gave last week.

    Ahead of Market: 10 things that will decide D-Street action on WednesdayETMarkets.com
    Benchmark equity indices declined on Tuesday, snapping a four-session winning streak, dragged by Bajaj twins and IT stocks on concerns over near-term earnings, while a jump in Tata Motors on demerger plans capped losses.

    The blue-chip index NSE Nifty 50 shed 0.22% to 22,356, while the BSE Sensex dropped 0.26% to 73,677 at the close.

    Here's how analysts read the market pulse:

    "Bulls and bears experienced another day of minor clashes without arriving at a definitive outcome. The sentiment remains positive, with the index staying above the short-term moving average. The momentum indicator RSI is showing a bullish crossover. For a potential rally towards 22,600 and beyond, Nifty needs to decisively breach the 21,400 level. On the downside, support is positioned at 22,200," said Rupak De of LKP Securities.

    Aditya Gaggar, director of Progressive Shares, said, "After testing its strong support of 22,300, the index has formed another DOJI candlestick pattern which indicates indecisiveness between the bulls and bears. A convincing close above 22,420 is a must to resume its uptrend."

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

    US market


    Wall Street fell on Tuesday, with weakness in megacap growth stocks weighing on the Nasdaq as investors assessed a slew of economic data and awaited remarks from Federal Reserve Chair Jerome Powell.

    Data showed U.S. services industry growth slowed a bit in February amid a decline in employment, but a measure of new orders increased to a six-month high, pointing to underlying strength in the sector.

    At 10:10 a.m. ET, the Dow Jones Industrial Average was down 194.04 points, or 0.50%, at 38,795.79, the S&P 500 was down 31.07 points, or 0.61%, at 5,099.88, and the Nasdaq Composite was down 209.02 points, or 1.29%, at 15,998.49.

    European shares


    European shares moved lower on Tuesday as pledges by China to transform its economy amid stuttering growth failed to impress investors, while markets grew cautious ahead of a string of euro zone and U.S. economic data.

    The pan-European STOXX 600 was down 0.3% by 9:10 GMT, after settling just below all-time highs on Monday.

    Basic resources and oil and gas shares declined 0.6% each as a firmer dollar and disappointment from the lack of fresh supportive measures in China sparked concerns over demand and slower consumption.


    Tech View: Doji candle


    Nifty on Tuesday ended 49 points lower to once again form a Doji candle on the daily chart. The index is now in the process of retesting the breakout of 22,300 it gave last week.

    Nifty should move towards the next resistance zone of 22,450-500 either continuously from the current levels or maybe after a minor dip. Support for the index is now seen at 22,250-300 and 22,125-150 levels, said Tejas Shah of JM Financial & BlinkX.


    Stocks showing bullish bias


    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of ABB Power, Vedanta, Muthoot Finance, GAIL, NTPC, and Aditya Birla Capital 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 Gujarat Fluorochemicals, Clean Science & Technology, Adani Energy Solutions, PI Industries, Granules India, and Poly Medicure 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


    Tata Motors (Rs 6,186 crore), HDFC Bank (Rs 2,721 crore), SBI (Rs 1,415 crore), Bajaj Finance (Rs 1,100 crore), RIL (Rs 1,063 crore), ICICI Bank (Rs 1,005 crore), and TCS (Rs 832 crore) were among the most active stocks on the 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 Motors (Shares traded: 5.9 crore), Tata Steel (Shares traded: 3.7 crore), HDFC Bank (Shares traded: 1.9 crore), ONGC (Shares traded: 1.8 crore), SBI (Shares traded: 1.8 crore), NTPC (Shares traded: 1.6 crore), and Power Grid (Shares traded: 1.3 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest


    Shares of Tata Motors, ONGC, SBI, NTPC, Maruti Suzuki, and ICICI Bank 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 Aavas Financiers, Timken India, and KRBL hit their 52-week lows, signalling bearish sentiment on the counters.


    Sentiment meter favours bears


    Overall, market breadth favoured bulls as 2,640 stocks ended in the red, while 1,212 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)


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    (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
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