The NSE Nifty 50 rose 0.52% to 24,467, while BSE Sensex gained 0.45% to 80,369. Both the indices had dropped about 0.7% each earlier before the U-turn sparked a second straight day of gains.
Here’s how analysts read the market pulse:
“On the daily charts, we can observe that the Nifty has found buying interest from support zone of 78.6% Fibonacci retracement level 24,170 and started the next leg of upmove. The upmove is likely to continue towards 24,563 – 24,823 which are the Fibonacci extension targets. The hourly momentum indicator has triggered a positive crossover and there is a high probability that the counter trend pullback rally which started can continue over the next few trading sessions,” 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. However, it is facing a lot of resilience around 24,450 to 24,500 levels for the past couple of days on an immediate basis and we need to witness a decisive close above 24,450-500 levels for further strength in Nifty. 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 Wednesday’s action:US market:
Wall Street was relatively unchanged on Tuesday as investors evaluated various corporate earnings and awaited results from Alphabet, Google’s parent company, later in the day.This week is the busiest for S&P 500 earnings, with significant attention on five stocks from the “Magnificent Seven” set to report their quarterly results. These outcomes will be critical in assessing whether Wall Street can maintain the optimism surrounding technology and artificial intelligence that has driven indexes to record highs this year.
Global markets:
Global stock indexes were largely stable to slightly higher on Tuesday as investors prepared for upcoming earnings reports this week.
The MSCI index, which tracks stocks worldwide, increased by 0.05 points, or 0.01%, reaching 847.98. Meanwhile, the STOXX 600 index decreased by 0.49%.
In the U.S., benchmark 10-year yields rose by 2.2 basis points to 4.3%, after earlier reaching a nearly four-week high of 4.337%.
The yen recovered after Monday’s drop to a three-month low, influenced by the coalition government’s poor performance in Japan’s recent elections, which has created uncertainty around the country’s fiscal and monetary policies.
The dollar increased by 0.1% to 153.365 yen. The Bank of Japan is set to announce its monetary policy decision on Thursday, with expectations that interest rates will remain unchanged.
U.S. crude oil prices fell by 0.62% to $66.96 per barrel, while Brent crude decreased by 0.66% to $70.95 per barrel.
Tech View:
Nifty formed a bullish candle in today’s session after forming a triple bottom in the 24,073-24,140 band and closed at its highest in 5 sessions. Its indicators are giving positive signals. The short-term trend of Nifty seems to have turned bullish. Nifty could take support from the above band while on upmoves it can face resistance in the 24,567-24,694 band in the near term, 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 24,600 strike prices, while on the put side, the highest OI was at 24,400 strike price followed by 24,300.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Thermax, Tips Music, ICICI Bank, Laurus Labs, and Kirloskar Pneumatic Company 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 JSW Holdings, Oberoi Realty, Five-Star Business Finance, Dodla Dairy, and Wendt (India) 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:
HDFC Bank (Rs 3,121 crore), ICICI Bank (Rs 2,729 crore), Maruti Suzuki (Rs 2,503 crore), SBI (Rs 2,306 crore), Tata Motors (Rs 2,260 crore), RIL (Rs 1,598 crore), and Dixon Technologies (Rs 1,400 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:
Suzlon Energy (Shares traded: 12.9 crore), PNB (Shares traded: 9.4 crore), YES Bank (Shares traded: 8.4 crore), Federal Bank (Shares traded: 6.7 crore), Canara Bank (Shares traded: 5.5 crore), IDFC First Bank (Shares traded: 5.2 crore), and JP Power (Shares traded: 4.2 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Deepak Fertilisers, Gillette India, MCX India, City Union Bank, and Piramal Pharma 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 Astral Poly Tech, IndusInd Bank, Zee Enterprises, and Delhivery hit their 52-week lows, signaling bearish sentiment on the counter.
Sentiment meter bulls:
Overall, market breadth favoured bulls as 2,242 stocks ended in the green, while 1,623 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)
