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    Ahead of Market: 12 things that will decide stock action on Wednesday

    Synopsis

    On the downside, 13,250-13,280 is a near-term support zone and any minor degree dip is likely to find support over there. The overall outlook for the Nifty continues to be positive with the short-term target at 13,700.

    marketiStock
    Reports of emergency vaccine rollout in India and hopes of stimulus packages in the US and Japan have also helped in keeping momentum live.
    Nifty touched its all time high on Tuesday, forming a doji candle on the daily chart. This signalS indecisiveness as the benchmark index closed slightly below the opening price of 13,393.85.

    Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas, said, “There is a possibility of a brief pause before the index stretches higher. On the downside, 13,250-13,280 is a near-term support zone and any minor degree dip is likely to find support over there. The overall outlook for the Nifty continues to be positive with the short-term target at 13,700,” he said.

    “Since November, PSU banks have been outperforming the market and this rally continued and took Indian benchmark indices to new highs in today’s volatile session. Reports of emergency vaccine rollout in India and hopes of stimulus packages in the US and Japan have also helped in keeping momentum live,” said Vinod Nair, Head of Research at Geojit Financial Services.

    That said, here's a look at what some of the key indicators are suggesting for Wednesday's action:
    US shares dip on rising virus cases

    Wall Street's main indexes were trading lower on Tuesday as surging coronavirus cases threatened to hamper an economic revival, while investors awaited progress in ongoing negotiations for a fresh COVID-19 US relief package. The Dow Jones Industrial Average fell 2.84 points, or 0.07%, at 30,067.53. The S&P 500 was down by 4.91 points, or 0.14%, at 3,686.75, while the Nasdaq Composite dropped 36.77 points, or 0.29%, to 12,483.20.

    European shares flat ahead of Brexit trade talks
    European shares were little changed on Tuesday, as hopes of a Brexit trade deal faded amid a last-ditch attempt to find a solution, while rising coronavirus cases spurred talks of stricter curbs that could cause more economic pain. The pan-European STOXX 600 index was down 0.12%, while London's FTSE 100, which has been outperforming regional peers in recent sessions, was trdaing flat at 0.06%.

    Tech view: Nifty forms indecisive Doji
    Nifty50 on Tuesday breached the 13,400 level on an intraday basos but could not sustain the gains. Buying was seen later at lows, as the index ended almost where it had opened, thereby forming an indecisive Doji on the daily chart. The index made a higher high higher-low candle for the seventh session in a row, but the advance-decline ratio was slightly tilted in favour of the bears, hinting at wide profit booking in the broader market.

    Check out the candlestick formations in the latest trading sessions
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    F&O: Lower volatility suggests bulls holding tight grip
    India VIX rose 3.28% from 18.02 to 18.61 level. The overall lower volatility suggests the bulls are holding a tight grip and any decline could trigger buying in this market. Marginal Call writing was seen at strike price 13,400, while there was unwinding at 14,000 and Put writing was seen at 13,000 and then 13,400 levels. Options data suggested an immediate trading range between 13,200 and 13,500 levels.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) on Tuesday showed bullish trade setup on the counters of ICICI Bank, Karur Vysya Bank, PNB Gilts, Colgate Palmolive, Prince Pipes & Fittings, Dynemic Products, KPR Mill, Subros, Vinati Organics, S P Apparels, AMJ Land Holdings, Jash Engineering, Pearl Polymers and Welspun Investments.

    Stocks signalling weakness ahead
    The MACD showed bearish signs on the counters of Vodafone Idea, Bharat Petroleum, SBI Life Insurance, Granules India, Phillips Carbon, Manali Petrochemicals, Centrum Capital, S H Kelkar & Company, Fineotex Chemical, Schneider Electric, Cyient, Future Lifestyle, Inox Wind, Asian Granito India, Can Fin Homes, EPL Ltd, Texmo Pipes & Products, Swan Energy, Brigade Enterprises, Astral Poly Technik, B L Kashyap & Sons, Kiri Industries, VLS Finance, Hindustan Media Ventures, Mahindra CIE Auto, Anjani Portland, Sandhar Technologies, Ador Welding, Maithan Alloys, Lux Industries, Aaron Industries, Global Offshore Services, Techno Electric & Engg, Hinduja Global Solutions, Automotive Axles, Ratnamani Metals, Honeywell Automation, Ebixcash World Money and JSW Holdings.

    Tuesday's most active stocks
    RIL (Rs 3996.31 crore), SBI (Rs 1771.15 crore), Maruti Suzuki (Rs 1475.84 crore), Bajaj Finance (Rs 1430.24 crore), Infosys (Rs 1420.63 crore), HDFC Bank (Rs 1340.00 crore), HDFC (Rs 1218.66 crore), IndusInd Bank (Rs 1208.37 crore), TCS (Rs 1185.49 crore) and IRCTC (Rs 1044.13 crore) were among the most active stocks on Dalal Street on Tuesday in value terms.

    Tuesday's most active stocks in volume terms
    YES Bank (Shares traded: 56.27 crore), PNB (Shares traded: 22.73 crore), Vodafone Idea (Shares traded: 16.91 crore), Bank of Baroda (Shares traded: 13.44 crore), JP Power (Shares traded: 12.26 crore), South Indian Bank (Shares traded: 9.52 crore), BHEL (Shares traded: 8.33 crore), JP Associates (Shares traded: 7.95 crore), Canara Bank (Shares traded: 7.26 crore) and SBI (Shares traded: 6.56 crore) were among the most traded stocks in the session.

    Stocks showing buying interest
    Wockhardt, Zensar Tech, Tanla Solutions, Avenue Supermart and Godrej Prop witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Tuesday signalling bullish sentiment.

    Stocks seeing selling pressure
    Jump Networks, Sanginita Chemicals, Vishal Fabrics witnessed strong selling pressure in Tuesday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.

    Sentiment meter favoured the bears
    Overall, market breadth remained in favour of bears. As many as 185 stocks on the BSE 500 index settled the day in green, while 312 settled the day in red.

    Podcast: Where should equity investors hunt for value now? >>>
    Three stocks -- Reliance Industries, TCS and Infosys -- contributed to most of the gains in benchmark equity indices which ended at fresh closing highs. Sensex added 182 points to close at 45,609 points, while Nifty rose 37 points to 13,393 points. We caught up with Vinod Nair, Head of Research at Geojit Financial Services, to discuss where investors can find value now.





    ( Originally published on Dec 08, 2020 )

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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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