Meanwhile, Tuesday’s trade can see some impact as India’s retail inflation accelerated to a 9-month high of 5.49% on an annual basis in September, driven by a persistent rise in vegetable prices and a lower year-ago base. This is higher than the 5-year low of 3.65% registered in the previous month and marks the first time since July that it has exceeded the Reserve Bank of India’s (RBI) 4% medium-term target.
Here’s how analysts read the market pulse:
“On the daily charts, we can observe that the Nifty has resumed its upmove towards 25500 after a brief three-day consolidation. Hourly momentum indicator has a positive crossover which is a buy signal. Thus, we expect the positive momentum to continue over the next few trading sessions towards 25234 – 25360. Support base shifts higher towards 24920,” said Jatin Gedia of Sharekhan.Tejas Shah of JM Financial & BlinkX, said, “The candlestick pattern formed on the daily chart is an encouraging one. On the higher side, the 25,250 – 25,300 zone remains important as a barrier and the market needs to cross this on a closing basis for any major strength in Nifty. Support for Nifty is now seen at 25,000 and 24,750-800. On the higher side, immediate resistance for Nifty is at 25,150 levels and the next crucial resistance zone is at 25,250-300 levels.”That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:
US market:
Wall Street rose on Monday, with the S&P 500 and Dow hitting new intraday record highs as investors prepared for a week filled with corporate earnings and key economic data that could challenge elevated stock market valuations. Chip stocks propelled gains on the S&P 500 and Nasdaq, with the benchmark index building on its record close from Friday after major banks kicked off the third-quarter earnings season positively. An index of semiconductor companies surged 1.5% to a two-month high, driven by a 2.5% increase in Nvidia. Other growth stocks like Apple and Microsoft rose 1.1% and 0.9%, respectively, while energy shares dipped 0.2%, following a decline in oil prices.
European shares:
European stocks closed Monday’s volatile session at a two-week high as investors looked ahead to corporate earnings and a European Central Bank policy decision later this week, though caution lingered after China’s weekend stimulus announcements fell short of expectations.
The continent-wide STOXX 600 index finished 0.48% higher, with technology, defense, and utilities sectors each gaining over 1.2%.
France’s main index lagged behind other major markets after credit ratings agency Fitch downgraded the country’s outlook from “stable” to “negative” on Friday.
Tech View: Long bull candle
A long bull candle was formed on Nifty’s daily chart, which indicates an attempt of an upside breakout of smaller range movement. Having moved within a broader high low range of 25,200-24,700 levels in the last 3-4 sessions. The index has bounced back and is now placed near the upper range of 25,200 levels.
A sustainable move above the upper range of 25,200 levels could be considered as an upside breakout of the key hurdle and that could eventually pull Nifty towards the next resistance of 25,500-25,600 levels in the near term. Immediate support is placed at the 24,900 levels, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,200 and 25,300 strike prices, while on the put side, the highest OI was at 25,000 strike price followed by 25,100.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Gujarat Fluorochemicals, Neuland Laboratories, Mankind Pharma, Va Tech Wabag, Angel One, and ZF Steering Gear among others.
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 signaling weakness ahead:
The MACD showed bearish signs on the counters of Paytm, Balrampur Chini Mills, Saregama, Five-Star Business Finance, and Vedanta among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms:
BSE (Rs 6,074 crore), CDSL (Rs 2,844 crore), Avenue Supermart (Rs 2,050 crore), RIL (Rs 1,678 crore), HDFC Bank (Rs 1,558 crore), ICICI Bank (Rs 1,458 crore), and Zomato (Rs 1,273 crore) among others 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:
JP Power (Shares traded: 9.8 crore), YES Bank (Shares traded: 5.6 crore), Zomato (Shares traded: 4.5 crore), Easy Trip Planners (Shares traded: 3.7 crore), Bandhan Bank (Shares traded: 3.6 crore), Tata Steel (Shares traded: 3.5 crore), and Nalco (Shares traded: 3.3 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Aptus Value Hosuing Finance, BSE, Oberoi Realty, Tech Mahindra, Persistent System, Motilal Oswal, and Anant Raj among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
Shares of CreditAccess Grameen hit their 52-week lows, signaling bearish sentiment on the counter.
Sentiment meter bulls:
Overall, market breadth favoured bulls as 2,069 stocks ended in the green, while 1,972 names settled in the red.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
