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

Here’s how analysts read the market pulse:

Deepak Jasani, Head of Retail Research, HDFC Securities, said that the Nifty has risen for seven weeks from the lows of 15,183 (with one negative close in between). “It could now make a top for this move in the 17,784-18,115 band and later correct. On falls, 17,556 and 17,407 are the supports,” he said.

Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities, said that the technical landscape for Nifty is likely to be positive as long as the benchmark trades above its biggest support at the 17,527 mark with targets at 17,889 mark and then the psychological 18,000 mark.

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

US stocks slip as China data sparks fear

Wall Street’s main indexes opened lower on Monday, mirroring global markets, after weak economic data from China rekindled fears of an economic slowdown in the world’s second-largest economy.

The Dow Jones Industrial Average fell 50.35 points, or 0.15%, at the open to 33,710.70.

The S&P 500 opened lower by 10.78 points, or 0.25%, at 4,269.37, while the Nasdaq Composite dropped 50.56 points, or 0.39%, to 12,996.63 at the opening bell.

European shares
With European stocks steadying at 10-week highs, one may be apt to forget that many players expect a recession by year-end.

The pan-European equity benchmark index was last up 0.2%.

There was some relief over results from Hellofresh which confirmed its 2025 targets and said it was cautiously optimistic about H2, sending its shares up 9% to the top of the STOXX.

Tech View: Long bullish candle on weekly chart

Nifty50 formed a small bullish candle on the daily chart and a long bullish candle on the weekly chart, the fourth in a row. Analysts said that the bulls need to be cautious at this juncture and felt profit booking at higher levels can’t be ruled out.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Bharat Forge,

, PNB Housing, , Vaibhav Global and .

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 signalling weakness ahead
The MACD showed bearish signs on the counters of UCO Bank,

, , and . Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms
RIL (Rs 1,533 crore), Tata Steel (Rs 1,073 crore), ICICI Bank (Rs 936 crore), Divi’s Labs (Rs 797 crore),

(Rs 758 crore), and HDFC Bank (Rs 657 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
Tata Steel (Shares traded: 9.6 crore), ONGC (Shares traded: 4.1 crore), NTPC (Shares traded: 1.8 crore),

(Shares traded: 1.3 crore), SBI (Shares traded: 1.2 crore) and ICICI Bank (Shares traded: 1.1 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Tata Elxsi,

, , , Trent, and witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure

Shares of

witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured losers as 1,760 stocks ended in the green, while 1,628 names settled with cuts.

(With inputs from agencies)


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