The BSE benchmark Sensex settled down 57 points, or 0.07%, at 79,648.9, while the broader NSE Nifty closed down 20.5 points, or 0.08%, at 24,347.
Here’s how analysts read the pulse of the market:
Sentiment is bearish with the index closing below the 21-day EMA. The RSI is in a bearish crossover, indicating weak momentum. As long as it remains below 24,500, the market may continue to sell off. At the lower end, support is placed at 24,150,” said Rupak De, senior technical analyst at LKP Securities.
Sharekhan’s Jatin Gedia said, “On the daily chart, we can observe that Nifty is in a counter trend pullback after a 1200 point decline. On the upside, a retracement may take place from 24520 – 24650 where the 50% and 61.82% Fibonacci retracement levels are on the downside. placed at 24210.”
That said, here’s a look at what some key indicators suggest for Tuesday’s action:
US Market:
US stocks were mixed on Monday as investors braced for a busy week of economic data with the focus on US consumer prices to gauge future Federal Reserve policy. By 11:30 am ET, the Dow Jones Industrial Average was down 165.85 points, or 0.42%, at 39,331.69, while the S&P 500 was down 2.63 points, or 0.05%, at 5,340.65. In contrast, the Nasdaq Composite rose 31.22 points, or 0.19%, to close at 16,776.53. Most shares of the Magnificent Seven fell, with Tesla down 1.8% and Nvidia down 4%. Investors await Wednesday’s CPI report and Thursday’s retail sales data.
European Stocks:
Europe’s benchmark stock indexes showed little movement on Monday, erasing early gains as investors awaited crucial U.S. inflation data to gauge the Federal Reserve’s monetary policy amid worries about an ongoing recession and a deluge of European economic reports.
The STOXX 600 index ended the day flat, recovering from a significant sell-off in riskier assets following last week’s sluggish performance and fears of a US recession. The energy and basic resources sectors led gains due to higher oil and metals prices, while real estate fell 0.9%.
Tech View: Doji candlestick
The Nifty formed a doji candle on the daily chart in Monday’s trading session down 20.5 points and showed indecisive mood on Dalal Street.
Generally, Nifty is still trading in the range of 24,000 to 24,400 levels for the last few days and we need to wait for breakout or breakdown on both sides for further major direction in Nifty. Support for the index is now seen at 24,200 and 23,950-24,000 levels. On the upside, the immediate resistance zone for Nifty is at 24,350-400 level and the next resistance is at 24,550 level, said Tejas Shah, Technical Research, JM Financial & BlinkX.
Stocks Showing Bullish Bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on counters of Gillette India, Trent, AIA Engineering, Orchid Pharma, Bharat Rasayan, Eiffel India and Pitti Engineering.
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 the counters of Divini Laboratories, Suven Pharma, Adani Energy Solutions, Sapphire Foods and Mastel. A bearish crossover on MACD on these counters indicates that they have started their downward journey.
Most active stocks by value:
RVNL (Rs 3,493 crore), HDFC Bank (Rs 3,272 crore), Adani Enterprises (Rs 3,196 crore), Voltas (Rs 2,178 crore), Adani Power (Rs 1,892 crore), Inox Wind (Rs 1,819 crore) ), and Adani Ports (Rs 1,382 crore) were among 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: 29 crore), Yes Bank (Shares traded: 20.8 crore), Suzlon Energy (Shares traded: 13 crore), HFCL (Shares traded: 9.7 crore), Inox Wind (Shares traded: 9.2 crore), IRFC (Shares Traded: 6.4 Crore), and RVNL (Shares Traded: 6.2 Crore) among others were among the most traded stocks of the session on NSE.
Stocks showing interest in buying:
Shares of Inox Wind, Voltas, Glenmark Life, Jubilant Foodworks, HFCL, Welspun Corp and Bikaji Foods International saw strong buying interest from market participants as they scaled their fresh 52-week highs, indicating bullish sentiment.
Selling Pressure in Stocks:
Shares of Equitas Small Finance Bank hit their 52-week low, signaling bearish sentiment on the counters.
The sentiment meter favors the bears:
Overall, market breadth favored the bears as 2,187 stocks ended in the red, while 1,899 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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