The NSE Nifty 50 index rose 0.76% to 25,010, while the S&P BSE Sensex rose 0.75% to settle at 81,698.
Here’s how analysts read the pulse of the market:
“On the daily chart, we can observe that the Nifty has filled the gap area formed on 2nd August and is higher. The rally above the previous all-time high 25078 and above is likely to extend to 25220 which is the daily upper Bollinger band. . DOWNSIDE At, 24600, which is around the 20-day moving average, will act as a trend reversal level from a short-term perspective,” said Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas.
Tejas Shah of JM Financial & BlinkX said, “Bulls are in complete control of the markets at present and are using every intra-day correction to build long positions. The short-term moving average is slightly below price action and continues to support it. Indicators on each decline for Nifty now seen at 24,850 and 24,650 levels continue to advance.”
That said, here’s a look at what some key indicators suggest for Tuesday’s action:
US Market:
On Monday, the Dow and S&P 500 were higher in volatile trading as investors anticipated a Federal Reserve rate cut and awaited Nvidia’s results later in the week. A rise in crude oil prices has boosted energy stocks.
The Dow hit an intraday record high, buoyed by Fed Chair Jerome Powell’s comments on low inflation risks and a possible rate cut due to moderating labor demand. The S&P 500 is also near record highs, with rate-sensitive small caps enjoying their best day in six weeks.
The Dow Jones Industrial Average rose 0.42% to 41,346.57, while the S&P 500 added 0.11% to 5,640.62 and the Nasdaq Composite fell 0.20% to 17,841.20.
European Stocks:
European stocks were mostly flat in slow trading on Monday, with semiconductor stocks dragging the technology sector lower. Investors awaited key economic data releases and Nvidia’s second-quarter results on Wednesday. The biggest decliners were in the technology sector, which fell 1%, as ASML Holding, ASM International and Aixtron fell between 1.6% and 2.7%.
Tech View:
The Nifty ended Monday’s session up 187 points and was just 68 points away from crossing its previous all-time high of 25,078. On the daily chart, the index forms a long bull candle with a small upper shadow.
Technically, this pattern suggests an attempted upside breakout of the previous down gap resistance around the 24950-25000 levels of August 2nd. Hence, the two important down gaps of 2nd and 5th August around 24950-24680 respectively are completely filled. Nagaraj Shetty of HDFC Securities said this is a positive sign.
Open interest (OI) data shows that on the call side, the highest OI was seen at 25,200 and 25,500 strike prices, while on the put side, the highest OI was seen at 24,800 strike price.
Stocks Showing Bullish Bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on counters of TCPL Packaging, Deepak Fertilizers, DOMS Industries, Hindustan Unilever, Swaraj Engines and Apar Industries.
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 is a Colgate-Palmolive, Dr. The counters of Lal Pathlabs, Lupine, Infosys, Avenue Supermarts and Jyoti Labs showed bearish signs. A bearish crossover on MACD on these counters indicates that they have started their downward journey.
Most active stocks by value:
HDFC Bank (Rs 1,836 crore), Medplus Health Services (Rs 1,514 crore), Honasa Consumer (Rs 1,407 crore), RIL (Rs 1,335 crore), ICICI Bank (Rs 1,322 crore), GSPL (Rs 1,220 crore), and Tata Motors (Rs. 1,031 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: 24.3 crore), Yes Bank (shares traded: 8.4 crore), Alok Industries (shares traded: 6.5 crore), Suzlon Energy (shares traded: 5.7 crore), JM Financial (shares traded: 5.7 crore), Zomato (shares traded: 3.6 crore), and HFCL (shares traded: 3.3 crore) among others were among the most traded stocks of the session on NSE.
Stocks showing interest in buying:
Shares of Motilal Oswal, Honasa Consumer, PolicyBazar, BLS International Services, Ques Corp, Craftsman Automation and Gillette India saw strong buying interest from market participants as they scaled their fresh 52-week highs, indicating bullish sentiment.
Selling Pressure in Stocks:
No major stocks touched their 52-week lows on Monday.
The sentiment meter favors the bulls:
Overall, market breadth favored the bulls as 2,143 stocks ended in the green, while 1,913 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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