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NEW DELHI: The selling pressure continues to mount day by day as the headwinds become stronger. Analysts advise to be cautious and stock only quality names.

Here’s how analysts read the market pulse:-

Nifty50 is currently placed near the 78.60 per cent of Fibonacci retracement, while any further sell-off could drag it towards the psychological mark of 16,000 in the near future, said Osho Krishan of Angel One.



Nagaraj Shetti at HDFC Securities said the short-term trend of the Nifty50 continues to be negative.

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

US Stocks Whipsaw After Brief Rally

Stocks whipsawed on concern the Federal Reserve may have to take a more aggressive stance to combat soaring prices, a move that would raise the risks of pushing the economy toward a recession.

The Dow Jones Industrial Average was last down more than 180 points, or 0.6% after rising more than 500 points earlier in the session. The S&P 500 and Nasdaq Composite slipped about 0.5% and 0.2%, respectively, stepping back an early rally.

European Stocks Rise From Two-Month Low

European stocks gained slightly on Tuesday as traders returned to risk assets, encouraged by cheaper valuations following four straight days of steep declines amid fears of a recession and tighter monetary policy.

The Stoxx Europe 600 Index closed up 0.7% after hitting a two-month low in the previous session.

Tech View: Indecisive Candle

Nifty50 fell for the third day and continued with its lower high-low formations. The index made an indecisive candle on the daily chart, with a long upper wick, as the bears thwarted the bulls’ attempt to make a comeback.

F&O: Resistance at 16,500

On the call side highest OI was witnessed at 16,500, followed by a 16,700 strike price, while on the put side, the highest OI was at 16,000, followed by a 16,200 strike price, providing support to the Nifty index.

Stocks Showing Bullish Bias

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

.

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 Blue Dart,

, India, Schaeffler India, Amber Enterprises and Mahindra CIE. 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 2247 crore), Tata Steel (Rs 1742 crore), (Rs 1342 crore), (Rs 1093 crore), (Rs 969 crore), HDFC (Rs 925 crore) and (Rs 910 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

Vodafone Idea (Shares traded: 10 crore),

(Shares traded: 7 crore), (Shares traded: 5 crore), (Shares traded: 3 crore), SAIL (Shares traded: 3 crore) and (Shares traded: 3 crore) were among the most traded stocks in the session on NSE.

Stocks Showing Buying Interest

Power Grid witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks Seeing Selling Pressure
Zomato, Infibeam Avenues,

Industries, Natco Pharma, Nazara Tech, and witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment Meter Favours Bears

Overall, market breadth favoured losers as 870 stocks ended in the green, while 2,491 names settled with cuts.

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