Ahead of the market: 10 things that will determine stock action on Wednesday

Domestic benchmark equity indices Sensex and Nifty 50 closed higher for the second straight day on Tuesday, as gains in banking and financial stocks helped the indices reverse course in the final hour of trading after spending the day under some soft earnings reports and continued dues pressure. Foreign sales.

The NSE Nifty 50 was up 0.52% at 24,467, while the BSE Sensex was up 0.45% at 80,369. Both indexes fell by about 0.7% before a U-turn for a second straight day of gains.

Here’s how analysts read the pulse of the market:

“On the daily chart, we can observe that Nifty has received buying interest from the support zone of 78.6% Fibonacci retracement level at 24,170 and initiated the next phase of upmove. The upmove is likely to continue towards 24,563 – 24,823 which are the Fibonacci extension targets. Sher Khan’s Jatin The hourly momentum indicator has triggered a positive crossover and a counter-trend pullback rally is likely to begin, Gedia said.

Tejas Shah of JM Financial & BlinkX said, “As long as Nifty holds above 24K, the pullback rally that has started recently is likely to continue. However, it has been facing a lot of resilience around 24,450 to 24,500 levels in the past. .Two days on immediate basis and further strength in Nifty we need to see a critical close above 24,450-500 level and next critical resistance zone is at 24,700-750 level.”

That said, here’s a look at what some key indicators suggest for Wednesday’s action:

US Market:
Wall Street was relatively unchanged on Tuesday as investors weighed various corporate earnings and awaited results from Google parent Alphabet later in the day.

This week has been the busiest for S&P 500 earnings, with five stocks from the “Magnificent Seven” set to report their quarterly results receiving significant attention. The results will be crucial in assessing whether Wall Street can sustain the optimism surrounding technology and artificial intelligence that has driven indices to record highs this year.

Global Markets:
Global stock indexes were mostly steady slightly higher on Tuesday as investors braced for upcoming earnings reports this week.

The MSCI index, which tracks stocks worldwide, rose 0.05 points, or 0.01%, to 847.98. Meanwhile, the STOXX 600 index fell 0.49%.

In the US, the benchmark 10-year yield rose 2.2 basis points to 4.3%, after earlier hitting a near four-week high of 4.337%.

The yen recovered after falling to a three-month low on Monday, hurt by the coalition government’s poor performance in Japan’s recent elections, which has raised uncertainty around the country’s fiscal and monetary policies.

The dollar rose 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.

US crude oil prices fell 0.62% to $66.96 a barrel, while Brent crude fell 0.66% to $70.95 a barrel.

Tech View:
The Nifty made a bullish candle in today’s session after making a triple bottom in the 24,073-24,140 band and closed at its highest level in 5 sessions. Its indicators are showing positive signs. The short term trend of Nifty seems to be bullish. HDFC Securities’ Deepak Jasani said the Nifty may take support from the above band while on an upmove it may face resistance in the 24,567-24,694 band in the near term.

In open interest (OI) data, the highest OI was seen at 24,500 and 24,600 strike prices on the call side, while on the put side, the highest OI was seen at 24,400 strike price followed by 24,300.

Stocks Showing Bullish Bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on counters of Thermax, Tips Music, ICICI Bank, Laurus Labs and Kirloskar Pneumatic Company.

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 signaling further weakness:
MACD showed bearish signals on counters of JSW Holdings, Oberoi Realty, Five-Star Business Finance, Dodla Dairy and Wendt (India). A bearish crossover on MACD on these counters indicates that they have started their downward journey.

Most active stocks by value:
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. 1,598 crore) at Rs. 1,400 crore) was one of the most active stocks on the NSE in terms of value. 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:
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) were the other most traded stocks in the session on NSE.

Stocks showing interest in buying:
Shares of Deepak Fertilizers, Gillette India, MCX India, City Union Bank and Piramal Pharma witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, indicating bullish sentiment.

Selling Pressure in Stocks:
Shares of Astral Poly Tech, IndusInd Bank, Zee Enterprises and Delhivery touched their 52-week lows, signaling bearish sentiment on the counter.

Sentiment Meter Bulls:
Overall, market breadth favored the 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 experts are their own. These do not represent the views of Economic Times)