Spread the love

NEW DELHI: Volatility remains high in the market as the uncertainties regarding commodity prices and interest rates linger. Meanwhile, analysts have also pointed out that earnings downgrades are in the offing, making the market participants cautious.

Here’s how analysts read the market pulse:-

“We saw buying interest as the index approached the 17,000 mark. Monday’s low of 17,000 in Nifty50 will be seen as a sacrosanct and till the support is intact one should avoid forming short positions,” said Ruchit Jain of 5paisa.com.

Independent Analyst Manish Shah said the MACD is in a buy mode and the 20-day moving average has ‘curled’ up.

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

US stocks mixed as markets monitor Ukraine talks

Wall Street stocks were mixed early Monday as markets monitored Russia-Ukraine peace talks, while oil prices retreated on worries over lower energy demand.

The S&P 500 was trading largely flat on Monday as gains in Tesla were offset by declines in bank and energy shares, ahead of the first face-to-face peace talks between Ukraine and Russia in more than two weeks.

The electric-car maker jumped 5.3% after saying that it will seek investor approval to increase its number of shares to enable a stock split.

At 10:24 a.m. ET, the Dow Jones Industrial Average was down 109.93 points, or 0.32%, at 34,751.31, the S&P 500 was down 1.47 points, or 0.03%, at 4,541.59, and the Nasdaq Composite was up 29.92 points, or 0.21%, at 14,199.22.

European markets climb on Ukraine developments

European stocks moved higher on Monday as investors continue monitoring developments in the war between Ukraine and Russia. The pan-European STOXX 600 index rose 0.29%.

In early European trading, Britain’s FTSE 100 added 0.7%, Germany’s DAX jumped 2.1% and France’s CAC 40 added 1.8%.

Tech View: Bullish candle

Nifty50 snapped a three-day losing run and closed above the 17,200 mark after testing the lower end of its consolidation range of 17,000-17,450. The index moved above its 50-day and 200-day moving averages as it ended up forming a bullish candle on the daily chart, with a long lower wick, suggesting buying interest at low.

F&O: Strong support at 17,000

“In the options segment, the put writers have decent open interest outstanding in 17,000 strike, which makes this support more prominent. Hence, we witnessed buying interest as the index approached the 17000 mark,” said Ruchit Jain, Lead Research, 5paisa.com.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Power Grid and Nesco.

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 Titan, BSE, Torrent Pharma, Amber Enterprises, Johnson Controls and Birla Corporations. 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 Elxsi (Rs 2,757 crore), PVR (Rs 1,381 crore), Adani Power (Rs 1,358 crore), Adani Wilmar (Rs 1,297 crore), Reliance Industries (Rs 1,192 crore), HDFC Bank (Rs 1,117 crore) and HDFC (Rs 1,070 crore) were among the most active stocks on Dalal Street 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: 12 crore), Adani Power (Shares traded: 9 crore), YES Bank (Shares traded: 8 crore), GTL Infra (Shares traded: 7 crore), IDFC First Bank (Shares traded: 6 crore) and Lemon Tree (Shares traded: 6 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest

Supreme Petrochem, Lemon Tree Hotels, Inox Leisure, Gujarat Alkalies, Gujarat Ambuja, Tata Elxsi and GNFC witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure

Vaibhav Global, Max Financial, Dilip Buildcon, Godrej Industries, Castrol India, Aarti Drugs and FDC 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 1,121 stocks ended in the green, while 2,399 names settled with cuts.



Leave a Reply

Your email address will not be published. Required fields are marked *