The NSE Nifty 50 closed 0.39% higher at 23,558, while the S&P BSE Sensex closed 0.40% higher at 77,301.
Here is how analysts view the market:
Rupak Dey of LKP Securities said, “After a strong opening, Nifty remained within a range as the index exhibited another day of muted movement on the daily chart. For the last few days, Nifty has been moving sideways on an intraday basis but it eventually moved above 23,500. From here onwards, the trend looks positive, with support at 23,300. A dip below 23,300 could lead to selling pressure. On the higher side, the index could head towards 23,800.”
Rajesh Bhosale of Angel One said, “With the bullish cues, traders should focus on trades outside the index, as that is where the real action lies. With regards to levels, the immediate support is around the bullish gap near 23,500, with major support at 23,350. In the uncharted territory, 23,650 to 23,700 appears to be the immediate resistance. Traders are advised to keep an eye on these levels and set their trades accordingly.”
That said, let’s take a look at what some key indicators are pointing to for Wednesday’s action:
American Market
The S&P 500 and the Dow rose on Tuesday after weaker-than-expected U.S. retail sales data, with attention focused on comments from Federal Reserve officials later in the day.
Data showed US retail sales rose 0.1% in May, while economists polled by Reuters had expected a 0.3% rise, as lower gasoline prices weighed on receipts at service stations.
Following these data, the market has slightly raised expectations that the Fed will cut interest rates twice this year, according to LSEG’s FedWatch.
At 9:46 a.m. Eastern time, the Dow Jones Industrial Average was up 88.24 points, or 0.23%, at 38,866.34, the S&P 500 was up 9.62 points, or 0.18%, at 5,482.85, and the Nasdaq Composite was down 4.66 points, or 0.03%, at 17,852.36.
European Stocks
European stock markets rose on Tuesday, led by a drop in government bond yields as investors eased concerns about France’s political troubles and focused on data and comments from policymakers to gauge monetary policy from global central banks.
The pan-European Stoxx 600 closed up around 0.7%, with the utilities sector gaining 1.5%.
Euro zone government bond yields eased somewhat as concerns over political risk in France eased, while weak US consumer spending data helped spur some investment flows into fixed income. The US benchmark S&P 500 also rose.
European stocks on Friday posted their biggest weekly drop so far this year, as French President Emmanuel Macron called for early elections after his ruling centrist party was defeated in European Parliament elections.
Technical view: doji candle
Nifty formed a doji candle with a gain of 92 points in Tuesday’s trading session as the short-term trend of the index remains positive with trading in a narrow range.
Nagaraj Shetti of HDFC Securities said that after sustaining above the hurdle of 23,515 level (1.382% Fibonacci extension), Nifty can be expected to move towards the next resistance of 1.786% Fibonacci extension at 23,950 level in the near future, while the immediate support is placed at 23450.
Open interest (OI) data showed that on the call side, the highest OI was seen at 24,000 and 24,500 strike prices. On the put side, the highest OI was at 23,000 strike price.
Stocks showing bullish trend
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on stocks like ABB India, Hindustan Aeronautics, Cochin Shipyards, BEML, Godfrey Phillips India and Cummins India, etc.
The MACD is known to indicate trend reversal in the traded securities or index. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the security’s price may witness an upward movement and vice versa.
Sign of weakness in the stock market
The MACD showed bearish signals on the counters of Pfizer, Brigade Enterprises, HUL, Kirloskar Ferrous Industries and Sumitomo Chemical India. The bearish crossover on the MACD on these counters indicated that they have just started their downward journey.
Most active stocks in terms of value
HAL (Rs 5,442 crore), Mazagon Dock Shipbuilders (Rs 4,396 crore), Cochin Shipyard (Rs 2,697 crore), GRSE (Rs 2,620 crore), HDFC Bank (Rs 2,599 crore), BEL (Rs 2,059 crore) and ICICI Bank (Rs 2,044 crore) were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify the counter with the highest trading turnover for the day.
Most active stocks in terms of volume
Vodafone Idea (Shares Traded: 80 crore), HFCL (Shares Traded: 13.4 crore), GMR Infra (Shares Traded: 11.5 crore), YES Bank (Shares Traded: 9.3 crore), IDFC First Bank (Shares Traded: 7.3 crore), BEL (Shares Traded: 6.4 crore), and Samvardhana Motherson International (Shares Traded: 5.5 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of GRSE, Cochin Shipyard, Ramkrishna Forgings, Asahi India Glass, Mazagon Dock, Avanti Feeds and Phoenix Mills witnessed strong buying from market participants as these stocks hit fresh 52-week highs, signalling a bullish trend.
Selling pressure in stocks
No major stock hit its 52-week low on Tuesday.
Sentiment meter in favor of bulls
Overall, the market witnessed a bullish trend with 2,167 stocks ending in the green while 1,836 stocks ended in the red.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)
