Here’s how analysts pulse the market:
“Looking ahead, market direction will be largely influenced by the upcoming earnings reports and discussions on the Union Budget. Global market trends, particularly the strong performance of US markets will also be closely watched,” said Ajit Mishra – SVP, Research, Religare Broking.
“In the coming days, we expect the benchmark Nifty to go through a period of consolidation, potentially reducing the stretched parameters. Market sentiment remains positive with sectoral rotation contributing to a strong undertone. We expect this trend to continue barring any unexpected developments in global markets. In the meantime, we encourage traders to remain vigilant and secure consistent profits at regular intervals,” said Osho Krishnan, Senior Analyst – Technical & Derivatives, Angel One.
That said, here’s a look at what some key indicators suggest for Tuesday’s action:
US market
The S&P 500 and Nasdaq hit fresh highs on Friday after official data showed the US labor market continued to cool – raising expectations for a September interest rate cut.
Wall Street’s major indexes closed in the green, with the Nasdaq Composite up 0.9 percent to 18,352.76 and the S&P 500 up 0.5 percent to 5,567.19.
European stocks
European shares fell on Friday, led by losses in banks and energy stocks as investors became more cautious ahead of the second round of voting in French parliamentary elections.
The pan-European STOXX 600 index ended 0.2% lower, after hitting a more than one-week high earlier in the day. However, the index registered a gain of 1% for the week.
Tech View
The underlying trend of Nifty has been positive. An upside breakout hurdle around the 24400-24500 level is likely in the next few sessions. Nagaraj Shetty of HDFC Securities said immediate support is at 24170 level.
Stocks showing a bullish bias
Momentum Indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Rail Vikas Nigam, Vardhaman Textile, BEML, Thermax, Indian Railway Finance, Paytm etc.
MACD is known for indicating the opposite trend in traded securities or indices. When 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 signal further weakness
MACD showed bearish signals on counters of FACT, Siemens, Alok Industries, Bayer Cropscience, Bajaj Finserv, Can Fin Homes etc. A bearish crossover on MACD on these counters indicates that they have started their downward journey.
Most active stocks by value
RVNL (Rs 71311 crore), HDFC Bank (Rs 6,812 crore), Mazagon Dock Ship (Rs 5,468 crore), Indian Railways Fin (Rs 4,183 crore), Cochin Shipyard (Rs 3,569 crore), Ircon International (Rs . 3,523 crore), and the most active stocks on the NSE by value include BEML (Rs. 3,462 crore). High activity on a counter in terms of value can help identify counters with the highest trading turnover in a day.
Most active stocks in terms of volume
Yes Bank (shares traded: 98.5 crore), Vodafone Idea (shares traded: 49.2 crore), Indian Railway Fin (shares traded: 22.4 crore), RVNL (shares traded: 15.2 crore), Ircon (shares traded: 11.6 crore), Suzlon (shares traded: 9.6 crore), and HFCL (shares traded: 8.1 crore) were among the most traded stocks of the session on the NSE.
Stocks show interest in buying
Shares of RVNL, Vardhaman Textile, Aircon International, Raymond, BEML, CG Power, RailTel Corp witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, indicating bullish sentiment.
Selling pressure is seen in stocks
No company’s shares hit a 52-week low on Friday.
The sentiment meter favors the bears
Overall, market breadth favored the bulls as 2,162 stocks ended in the green, while 1,772 names settled in the red.
(disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. (These do not represent the views of The Economic Times)
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