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

Supported by State Bank of India and ICICI Bank, which moved largely to the upside due to their significant weighting in benchmark indices, domestic markets pared early losses to close with modest gains. Sectorally, auto and energy stocks witnessed recovery, while IT, metals and FMCG stocks lagged behind. The Nifty 50 gained 11.30 points (0.05%) to close at 24,364.85, while the BSE Sensex gained 26.76 points (0.03%) to settle at 78,520.30.

Meanwhile, volatility gauge India VIX ended at 18.79, up 9.21% from last close.

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

Rupak De, senior technical analyst at LKP Securities, said the Nifty bounced back from the previous session’s highs but faced resistance at higher levels and slipped below 24,500. So far, the index has managed to sustain the recent lows from the all-time high above the 50% retracement level (placed at 24,270) of the previous decline, he said. “However, failure to break above 24,500, an immediate resistance, will make the current rally questionable. Support is placed at 24,270, while resistance is at 24,500/24,800,” Day added.

US markets

The S&P 500 and Nasdaq eased off record highs on Monday after last week’s stunning rally on Wall Street, as tensions between the US and Iran weighed on the collapse of a ceasefire and dampened investor sentiment.

Iran opened the Strait of Hormuz on Friday, with the S&P 500 and Nasdaq posting record highs for a third straight session and marking their biggest weekly gains since May.

However, Tehran closed the waterway again after the US said it had seized an Iranian cargo ship attempting to run its blockade. Iran’s foreign ministry said on Monday that there are no plans for a second round of talks with the US.

European markets

Most major European indices traded in the red at 1:41 pm BST (6:27 pm India time) on Monday. UK’s FTSE 100, Stoxx 600, Spain’s IBEX 35 and Germany’s Dax closed higher by between 0.67% and 1.37%.

Tech View

Decoding the technical charts, Bajaj Broking Research said that the index formed a higher wave candlestick pattern with higher highs and higher lows signaling consolidation around the 50-day EMA. Sustaining the index above last Wednesday’s gap-up area of ​​23850 would keep the bias positive and gradually open towards 24,700-24,800 levels, which is the confluence of 200-day EMA and 61.8% retracement of the entire decline, 3132 said.

“Volatility is likely to remain high due to geopolitical tensions and volatile crude oil prices. Short-term support is located around the 23,600-23,500 range due to the confluence of last week’s low and 20-day EMA. A higher and higher low formation on the weekly chart will sustain the current pullback trend.”

Most active stocks in terms of turnover

Triveni Turbine (Rs 190 crore), State Bank of India (Rs 153 crore), HDFC Bank (Rs 153 crore), ICICI Bank (Rs 141 crore), Indrapratha Gas (IGL, Rs 106 crore), Axis Bank (Rs 99 crore) and Suzlon Energy (Rs 85 crore) were the most active BSE stocks. High activity in 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 (traded shares: 2.35 crore), Yes Bank (traded shares: 1.94 crore), Suzlon Energy (traded shares: 1.62 crore), Spice Jet (traded shares: 1.57 crore), Ola Electric (traded shares: 1.15 crore), Reliance 6 lakh and Power 6 lakh shares. (Shares traded: 62.77 lakh) was one of the most actively traded stocks in terms of volume on BSE.

Stocks show interest in buying

Bank of Maharashtra (BoM), Deccan Gold Mines, Trent, Adani Power, Kakatiya Cement Sugar & Industries, STL Networks and Khetan (India) were among the stocks that saw strong buying interest from market participants.

52 week high

Today, 199 stocks touched their 52-week highs while 31 stocks slipped to their 52-week lows. Among those hitting their 52-week high were ABB India, Adani Energy Solutions, Adani Power, Bajaj Consumer Care, Bellarys Industries, Bharat Heavy Electricals (BHEL) and Cupid.

Selling pressure is seen in stocks

Large cap names include Jio Financial Services, Hindalco Industries and Tata Motors Passenger Vehicle (TMPV). Other stocks that saw significant selling pressure included Gravis Hospitality, Grand Oak Canyons Distillery, IEX, Cineline India, Centum Electronics, GMDC and Pashupati Coatspin.

The sentiment meter favors the bears

The Sensex ended with marginal gains, supported by State Bank of India (SBI), ICICI Bank and Trent, while market breadth in the overall markets remained negative. Of the 4,578 stocks traded on BSE on Monday, April 20, 1,810 stocks advanced, 2,593 declined while 175 remained unchanged.

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