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

Domestic benchmark equity indices ended higher on Monday, snapping from their losing streak over the past week, led by gains in banking and consumer stocks, despite lingering worries over the US economy following last week’s jobs data, which signaled continued slack in the labor market. .

The Nifty 50 index rose 0.34% to settle at 24,936 points. The S&P BSE Sensex rose 0.46% to 81,559 points.

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

“Technically, Nifty is oversold as long as it stays below 25,100. At the higher end, the 25,000-25,100 range could act as a critical near-term resistance, where sellers can re-enter. At the lower end, there is support. 24,800 -24,785, below which selling may pick up,” said Rupak De of LKP Securities.

Sharekhan’s Jatin Gedia said, “On the daily chart we can observe that the Nifty has tested and held the support zone 24850 – 24800 which is in line with the 20 day moving average and 38.2% Fibonacci retracement level. Today at 24750 A low is a stoploss for long positions and a break below it will lead to a trend reversal from a short-term perspective.

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

US Market:
US stocks rose on Monday, mirroring gains in Europe as investors awaited key data and central bank actions. The S&P 500 was poised to snap a four-day losing streak along with the downs, after experiencing its biggest weekly percentage decline since March 2022. Meanwhile, the Nasdaq rebounded from its most significant Friday-to-Friday decline since January 2022.

Tech View:

A reasonably positive candle was formed on the daily chart of Nifty after the formation of long bear candles on Friday. Technically, this pattern indicates the emergence of buying interest after a minor downward correction. Immediate support of the 20-day EMA has been regained at 24900 after breaching below it in the previous session.

Nifty’s short-term trend remains weak, but after a small downward correction, the market is showing signs of a sustained upside recovery. Nifty needs to cross the barrier of 25,150 to consider a possible trend change to the upside. Nagaraj Shetty of HDFC Securities said the immediate support is at 24750.

In open interest (OI) data, the highest OI was seen at 25,000 and 25,100 strike prices on the call side, while on the put side, the highest OI was seen at 24,800 strike price followed by 24,900.

Stocks Showing Bullish Bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on counters of Bharat Chemical, Jubilant Pharmava, Orchid Pharma, United Spirits, McPhos, Blue Star and JSW Energy.

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 Tata Elxsi, TVS Holdings, LTTS, Apollo Hospitals, Nelco, Venky’s, Lupin, Mankind Pharma, and BHDFC AMC. A bearish crossover on MACD on these counters indicates that they have started their downward journey.

Most active stocks by value:
HDFC Bank (Rs 1,952 crore), ICICI Bank (Rs 1,698 crore), SBI (Rs 1,661 crore), Zomato (Rs 1,529 crore), RIL (Rs 1,317 crore), Mazagon Dock Shipbuilders (Rs 1,310 crore) ), and PFC (Rs 1,310 crore to 1,054 crore) are 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: 62.9 crore), Yes Bank (Shares traded: 12.1 crore), Suzlon Energy (Shares traded: 8.7 crore), Zomato (Shares traded: 5.8 crore), IDFC First Bank (Shares traded: 5.8 crore), Canara Bank (shares traded: 4.5 crore), and Tata Steel (shares traded: 3.2 crore) were the other most traded stocks in the session on NSE.

Stocks showing interest in buying:
Shares including Glenmark Life, Gujarat Fluorochemicals, DOMS Industries, Godrej Consumer, HUL, Dabur India and Jubilant Pharmava saw strong buying interest from market participants as they scaled their fresh 52-week highs, indicating bullish sentiment. .

Selling Pressure in Stocks:
Shares of CSB Bank hit their 52-week low, signaling bearish sentiment over the counter.

The sentiment meter favors the bears:
Overall, market breadth favored the bears as 2,390 stocks ended in the red, while 1,650 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)