Here’s how analysts pulse the market:
“Nifty faced profit booking around 24,200, closing 100 points higher. Sentiment is likely to favor selling in rallies till it goes above 24,250. At lower end, 24,000 acts as immediate support for Nifty. Rupak De, senior technical analyst at LKP Securities, said a fall below 24,000 could lead to a correction towards 23,850/23,700.
“Investors are closely monitoring the progress of the monsoon, the upcoming Union Budget, the US election, which could have potential global economic implications. Recent spikes in US Treasury yields and a gradual rise in crude oil prices are affecting market trends, ” said Vinod Nair, Head of Research at Geojit Financial Services.
That said, here’s a look at what some key indicators suggest for Tuesday’s action:
US market
Wall Street indexes fell on Tuesday after Federal Reserve Chairman Jerome Powell said more evidence was needed before cutting interest rates, while gains in Tesla shares pared losses.
Stocks also pared early losses as Fed Chair Powell told a panel that recent economic data showed “significant progress,” though the central bank noted more needed to be seen before changing policy.
At 10:11 a.m., the Dow Jones Industrial Average was down 38.01 points, or 0.10%, at 39,131.51, the S&P 500 was down 7.23 points, or 0.13%, at 5,467.86, and the Nasdaq was down 1019 points. %, at 17,859.79.
European stocks
European shares fell to two-week lows on Tuesday as a relief rally in French stocks following the first round of parliamentary elections faded, while data pointed to elevated service inflation in the euro zone.
The pan-European STOXX 600 index was down 0.5% as of 0917 GMT, with insurers and automakers among the top sector decliners.
France’s blue-chip CAC 40 index fell 0.5% as investors remained cautious ahead of the second round of voting on July 7.
Tech View
The overall trend of Nifty has been positive. As per the bullish pattern of higher tops and bottoms, further consolidation or minor decline from here could be a buying opportunity. As per long term chart Nifty remains strong and can expect upside momentum to resume soon after consolidation movement. Immediate support is at 23,980. Nagaraj Shetty of HDFC Securities said, the next upside resistance will be seen around 24,400.
Stocks showing a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on counters of TV18 Broadcast, Network18 India, Jyoti Labs, CAMS, Adani Transmission, KEC International.
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 Shree Renuka Sugar, Metro Brands, GE Shipping, Lloyds Metals, Sundaram Finance, UPL 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 3,954 crore), JK Paper (Rs 2,199 crore), ICICI Bank (Rs 1,929 crore), L&T (Rs 1,829 crore), SBI (Rs 1,759 crore), GRSE (Rs 1,707 crore) , and Kotak Bank (Rs 1,699 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: 82.6 crore), Yes Bank (Shares traded: 14.7 crore), Zomato (Shares traded: 6.5 crore), Motherson Sumi (Shares traded: 4.8 crore), PNB (Shares traded: 4.1 crore), IDFC First Banks (shares traded: 3.9 crore), and TV18 Broadcast (shares traded: 3.8 crore) were among the most traded stocks in the session on NSE.
Stocks show interest in buying
Shares of JK Paper, Solar Industries, Sumitomo Chemicals, Godrej Properties, GRSE, Century Textiles and V-Guard saw 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 their 52-week lows on Tuesday.
The sentiment meter favors the bulls
Overall, market breadth favored the bulls as 1,965 stocks ended in the green, while 1,953 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)
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