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

Here’s how analysts read the market pulse:

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the short-term trend of the Nifty continues to be positive. “Display of lack of strength to sustain the highs during upside breakout is likely to result in further consolidation or downward correction from the highs. On the other hand, a decisive upmove above 15,900 could open further upside towards another hurdle of 16,200 levels,” he said.

Ajit Mishra, VP – Research, Religare Broking, reiterated a positive yet cautious view on markets citing the hurdle at 15,900 levels. “A decisive breakout could further fuel the recovery to the 16,200 zone in Nifty else correction would resume. Amid all, we’ve been seeing select sectors/themes doing well, so the focus should be more on identifying the stocks from such themes while keeping a check on leveraged positions.”

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

Wall Street sheds opening gains

Wall Street’s main indexes fell after opening higher on Monday, as a rally last week on easing concerns over inflation lost steam, with high-growth stocks leading declines. At 10:11 a.m. ET the Dow Jones Industrial Average was down 76.62 points, or 0.24%, at 31,424.06, the S&P 500 was down 13.94 points, or 0.36%, at 3,897.80 and the Nasdaq Composite was down 78.44 points, or 0.68%, at 11,529.19.

European stocks close slightly higher

European stocks closed slightly higher on Monday, as a positive trend seen at the end of last week’s trading lost some momentum. The pan-European Stoxx 600 index provisionally ended 0.6% higher.

Tech View: Bearish candle on daily charts

Nifty50 closed below its opening level, thus forming a bearish candle on the daily chart. Analysts said a failure to see a follow-up buying post a gap-down start was disappointing. The index needs to hold above 15,800 levels to hold for the momentum to stay strong, they said.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of

, System, , Firstsource, Uflex 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 Solar Ind, Relaxo, Voltas,

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

Most active stocks in value terms

(Rs 1,794 crore), (Rs 781 crore), (Rs 703 crore), M&M (Rs 684 crore), TCS (Rs 679 crore), and (Rs 668 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

ONGC (Shares traded: 2.5 crore),

(Shares traded: 1.5 crore), (Shares traded: 1.3 crore), NTPC (Shares traded: 1.3 crore), (Shares traded: 1.2 crore) and SBI (Shares traded: 9.5 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest

Shares of M&M witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure

Star Health,

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

Sentiment meter favours bulls

Overall, market breadth favoured winners as 2,360 stocks ended in the green, while 1,067 names settled with cuts.

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