The NSE Nifty50 gained 0.65% to close at 24,339, while the BSE Sensex advanced 0.76% to end at 80,005.
Here’s how analysts read the market pulse:
“On the daily charts, we can observe that the Nifty has found buying interest from the support zone of 24000 – 24090 where the daily lower Bollinger band is placed. The hourly momentum indicator has triggered a positive crossover and there is a high probability that the counter-trend pullback rally which started today can continue over the next few trading sessions till 24,900 – 24,930 where the key daily moving averages are placed,” said Jatin Gedia of Sharekhan.
Tejas Shah of JM Financial & BlinkX, said, “As long as Nifty is holding above 24 K, the present pullback rally which started recently is likely to continue. All pullback rallies towards 24,500 / 24,750 are likely to find selling pressure. Support for Nifty is now seen at 24,200 and 24,000. On the higher side, the immediate resistance zone for Nifty is at 24,450-500 levels and the next crucial resistance zone is at 24,700-750 levels.”
That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:US market:
Wall Street opened higher on Monday, with major U.S. stock indexes poised to recover some losses after a volatile trading week. This comes as investors await earnings reports from several megacap companies and gear up for the final push of the Nov. 5 presidential election.The focus for the week ahead is largely on corporate earnings, with around 169 S&P 500 companies set to report. This includes many from the “Magnificent Seven,” a group of tech giants that have significantly driven Wall Street’s gains this year. Notably, shares of Alphabet rose 1%, Meta Platforms gained 0.8%, and Microsoft increased by 0.3% ahead of their upcoming results.
Global stocks:
Global stock indexes rose on Monday as investors awaited earnings reports this week from several of the biggest U.S. tech-related companies, while oil prices fell sharply after Israel’s retaliatory strike against Iran at the weekend bypassed oil and nuclear facilities.
The Japanese yen reached a three-month low against the dollar after an election in Japan thrust the country into political turmoil.
Against the yen, the dollar rose by as much as 1% to a high of 153.88, the yen’s weakest level since late July. The dollar was last up 0.49% at 153.05.
MSCI’s gauge of stocks across the globe rose 3.38 points, or 0.40%, to 848.87. The STOXX 600 index rose 0.51%.
In Japan, Tokyo’s Nikkei closed up 1.8%, after initially dipping following the election result.
Tech View:
The Nifty remained volatile during the day before closing with a meaningful gain after several days. On the downside, it sustained above the previous day’s low, indicating strength in buying.
Nifty formed a high wave type candle on October 28 after a fall hinting at the start of an upward correction. Nifty could now rise to face resistance at 24,567, while the 24,073-24,135 band could offer support in the near term. Sustenance of this upmove over the next few days will be crucial to lead to the return of buying interest from all classes of investors, said Deepak Jasani of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 24,500 and 24,400 strike prices, while on the put side, the highest OI was at 24,200 strike price followed by 24,300.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Coforge, Yatharth Hospital & Trauma, and Aster DM Healthcare 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 MCX, Angel One, Nuvama Wealth Management, Va Tech Wabag, Redtape, Gopal Snacks, Agro Tech Foods, and Bombay Burmah Trading, and Emkay Global Financial Services 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:
IndiGo (Rs 3,634 crore), ICICI Bank (Rs 3,125 crore), HDFC Bank (Rs 1,913 crore), RIL (Rs 1,448 crore), Dixon Technologies (Rs 1,432 crore), Shriram Finance (Rs 1,414 crore), and Infosys (Rs 1,314 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:
YES Bank (Shares traded: 22.9 crore), IDFC First Bank (Shares traded: 19.5 crore), Suzlon Energy (Shares traded: 8.1 crore), JP Power (Shares traded: 7.5 crore), PNB (Shares traded: 7 crore), BHEL (Shares traded: 5.7 crore), and Canara Bank (Shares traded: 5.5 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Deepak Fertilisers, Firstsource, and Coforge 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, Mahindra Lifespace, Tanla Platforms, GNFC, Rajesh Exports, IDFC First Bank, and Trident hit their 52-week lows, signaling bearish sentiment on the counter.
Sentiment meter bulls:
Overall, market breadth favoured bulls as 2,579 stocks ended in the green, while 1,412 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)
