Here’s how analysts read the pulse of the market:
“Looking ahead, 25200 is set to act as a key support for the benchmark, while a solid support zone is expected in the 25100-25000 range. At the higher end of the spectrum, 25350-25400 is expected to act as an intermediate resistance, followed by a strong 25500 in the comparable period. A bottleneck is coming,” said Osho Krishnan, Senior Analyst – Technical & Derivatives, Angel One.
“Amid mixed global cues and the absence of significant new catalysts, apart from the expected Fed rate cut, which is already a factor, the domestic market took a breather. The recent slowdown in manufacturing activities led to mild caution, suggesting a slowdown in demand,” Vinod Nair said. said, 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:
US stocks fell on Tuesday after a weak start to a week full of economic updates. The S&P 500 fell 1.3%, the Dow Jones Industrial Average was down 502 points, or 1.2%, and the Nasdaq Composite was down 1.7%.
US manufacturing shrank again in August, with Treasury yields falling following a report that continued its contraction under higher interest rates.
Markets are hoping for a favorable shift in Federal Reserve policy, with key reports on job openings and employment heading into the weekend.
European share:
European stocks fell sharply on Tuesday, experiencing their worst session in nearly a month. The pan-European STOXX 600 index fell 1%, with Germany’s DAX off 0.9% from earlier highs. Stocks in France, Spain and Italy fell between 0.9% and 1.3%. The decline was driven by weak US manufacturing data, raising concerns about global growth ahead of Friday’s key jobs report.
Take View: Small negative candlestick
Nifty’s near-term uptrend position remains intact. The current range-bound movement may eventually result in an upside breakout of the barrier at the 25400 level during the time frame. A decisive move above this hurdle is expected to pull the Nifty towards the next upside target of 25800. The immediate support is at the 25100 level, said Nagaraj Shetty of HDFC Securities.
In open interest (OI) data, the highest OI was seen at 25,500 and 25,600 strike prices on the call side, while on the put side, the highest OI was seen at the 25,000 strike price.
Stocks Showing Bullish Bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on counters of Jai Balaji Industries, Oracle, GRSE, IGL, Max Financial and Suven Pharma.
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 Blue Star, Honeywell, Jubilant Life, Mahindra Lifespace, Vodafone Idea and Vardhaman Textiles. A bearish crossover on MACD on these counters indicates that they have started their downward journey.
Most active stocks by value:
Mazagon Dock (Rs 3,513 crore), HDFC Bank (Rs 3,042 crore), ICICI Bank (Rs 2,363 crore), Jio Financial (Rs 2,273 crore), HAL (Rs 1,916 crore), Zomato (Rs 1,656 crore) ), and RIL (Rs 1652 crore) were the other 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: 27.2 crore), Yes Bank (Shares traded: 7.2 crore), HFCL (Shares traded: 7.2 crore), Zomato (Shares traded: 6.6 crore), Jio Financial (Shares traded: 6.5 crore), JM Financial (Shares traded: 5.9 crore), and Suzlon Energy (Shares traded: 4.9 crore) among others were among the most traded stocks of the session on the NSE.
Stocks showing interest in buying:
Shares including Godrej Industries, JM Financial, Bombay Burma, Ques Corp, Poly Medicure, Oracle and Jindal 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 Tuesday.
The sentiment meter favors the bears:
Overall, market breadth favored the bears as 1995 stocks ended in the red, while 1,956 names settled in the green.
(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)
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