Here’s how analysts pulse the market:
“The Nifty has finally breached the 23,600 barrier after two weeks of consolidation, hitting new record highs. We maintain a positive outlook on the index, now targeting the next milestone of 24,000. We believe the current upturn in banking, with significant strength IT will set the trend, while other sectors may contribute on a rotational basis, traders should align their positions accordingly and avoid the opposite approach,” said Ajit Mishra.
“Technically, the index broke out of the short-term consolidation range of 23,330–23,670 and closed above it. As per this breakout, the rally may extend to 24,000 level. On the downside, 23,670 will act as an immediate support for the index,” Asit C Mehta Hrishikesh Yedve, AVP Technical and Derivatives Research at Investment Intermediates said.
That said, here’s a look at what some key indicators suggest for Wednesday’s action:
US market
The Nasdaq rose on Tuesday as Nvidia and other AI-linked stocks rallied after a selloff, while the Dow slipped from a one-month high as investors awaited key inflation data this week for further signs on the Fed’s monetary policy path. .
The S&P 500 technology sector rose 1.0%, recovering some of Monday’s losses. Losses in consumer discretionary and industrial stocks pulled the Dow back from a one-month high, while the small-cap index also fell 0.5%. At 10:03 a.m., the Dow Jones Industrial Average was down 150.00 points, or 0.38%, at 39,261.21, the S&P 500 was up 8.94 points, or 0.16%, at 5,456.81, and the Composite was up 5,761 points, or 0.16%. %, at 17,612.58.
European stocks
European shares fell on Tuesday after a 7% drop in chipmaker Nvidia on Monday, but US equity futures pointed higher after falling the previous day.
Stock market indexes hovered near record highs as investors turned to less attractive names. Government bond yields cooled and Japan’s yen remained under pressure.
Investors’ attention is being pulled in several directions as snap elections begin in France over the weekend; Thursday’s first US presidential debate; and the release of the Federal Reserve’s preferred gauge of inflation on Friday.
Europe’s benchmark STOXX 600 index slipped 0.3% with the STOXX tech index down 0.4% after falling 1.5% in early trading.
Germany’s DAX stock index was down 1% while Britain’s FTSE 100 was down 0.2%. A weak earnings update from airplane maker Airbus also weighed on European stocks.
Tech View
The short term trend of Nifty remains positive. The market is now showing early signs of an upside breakout in the near term. The next upside level to be seen is around 24,000. Nagaraj Shetty of HDFC Securities said immediate support is placed at 23,550.
Stocks showing a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on counters of Welspun Corp, CAMS, Alembic Pharma, AU SFB, ABB Power.
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 Carborundum Uni, Torrent Power, Vedant Fashions, Pidilite Industries, RIL, KEI Industries etc. A bearish crossover on MACD on these counters indicates that they have started their downward journey.
Most active stocks by value
HDFC Bank (Rs. 6,353 crore), GRSE (Rs. 3,886 crore), Amara Raja Batteries (Rs. 3,415 crore), ICICI Bank (Rs. 3,247 crore), Exide Industries (Rs. 2,467 crore), Axis Bank (Rs. 2217 crore), and HAL (Rs. 1,884 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
Vodafone Idea (Shares Traded: 66 Crore), Yes Bank (Shares Traded: 13 Crore), Suzlon (Shares Traded: 6.3 Crore), Zomato (Shares Traded: 6 Crore), Exide Industries (Shares Traded: 4.1 Crore), Shree Renuka were the top gainers of the session on NSE. Among the traded stocks were Sugar (Shares Traded: 3.8 Crore), and HDFC Bank (Shares Traded: 3.7 Crore).
Stocks show interest in buying
Shares including Amara Raja Batteries, Craftsman Automation, GRSE, Raymond, LIC Housing, Shriram Finance and City Union Bank saw strong buying interest from market participants as they scaled their fresh 52-week highs, indicating bullish sentiment. is
Selling pressure is seen in stocks
Shares of AllCargo Logistics hit their 52-week lows, signaling bearish sentiment across the counters.
The sentiment meter favors the bears
Overall, market breadth favored the bears as 2,149 stocks ended in the red, while 1,747 names settled in the green.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of Economic Times)
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