The BSE benchmark Sensex declined 57 points or 0.07% to settle at 79,648.9, while the broader NSE Nifty dropped 20.5 points or 0.08% to end at 24,347.
Here’s how analysts read the market pulse:
“The sentiment is sideways to weak, with the index closing below the 21-day EMA. The RSI is in a bearish crossover, indicating weak momentum. The market might continue to be a sell-on-rise as long as it stays below 24,500. On the lower end, support is placed at 24,150,” said Rupak De, Senior Technical Analyst, LKP Securities.Jatin Gedia of Sharekhan, said, “On the daily charts, we can observe that Nifty has been in a counter trend pullback after a decline of 1200 points. On the upside, the retracement can occur till 24520 – 24650 where the 50% and 61.82% Fibonacci retracement levels of the fall are placed. The immediate support on the downside is placed at 24210.”
That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:
US market:
Wall Street’s main indexes were slightly lower on Monday as investors held back ahead of key economic data later in the week, particularly U.S. consumer prices. Eight of the 11 S&P sectors declined, led by real estate and consumer discretionary. Tesla fell over 1%, contributing to losses in megacap and growth stocks. Despite recouping most losses from last week’s sharp drop, investors are cautious ahead of Wednesday’s CPI report and Thursday’s retail sales figures. The CBOE Volatility Index rose slightly but remains well below recent highs.Tech View: Doji candle
Nifty ended Monday’s trading session 20.5 points lower to form a Doji candle on the daily chart and indicate indecisive mood on Dalal Street.
Broadly, Nifty is still trading in the range of 24,000 to 24,400 levels for the past few days and we need to wait and watch for either side breakout or breakdown for further major direction in Nifty. Support for the index is now seen at 24,200 and 23,950-24,000 levels. On the higher side, the immediate resistance zone for Nifty is at 24,350-400 levels and the next resistance is at 24,550 levels, Tejas Shah, Technical Research, JM Financial & BlinkX, said.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Gillette India, Trent, AIA Engineering, Orchid Pharma, Bharat Rasayan, Affle India, and Pitti Engineering among others.
The MACD is known for signaling trend reversals in traded securities or indices. When the 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 weakness ahead:
The MACD showed bearish signs on the counters of Divi’s Laboratories, Suven Pharma, Adani Energy Solutions, Sapphire Foods, and Mastel among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms:
RVNL (Rs 3,493 crore), HDFC Bank (Rs 3,272 crore), Adani Enterprises (Rs 3,196 crore), Voltas (Rs 2,178 crore), Adani Power (Rs 1,892 crore), Inox Wind (Rs 1,819 crore), and Adani Ports (Rs 1,382 crore) among others were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.
Most active stocks in volume terms:
Vodafone Idea (Shares traded: 29 crore), YES Bank (Shares traded: 20.8 crore), Suzlon Energy (Shares traded: 13 crore), HFCL (Shares traded: 9.7 crore), Inox Wind (Shares traded: 9.2 crore), IRFC (Shares traded: 6.4 crore), and RVNL (Shares traded: 6.2 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Inox Wind, Voltas, Glenmark Life, Jubilant FoodWorks, HFCL, Welspun Corp, and Bikaji Foods International among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
Shares of Equitas Small Finance Bank hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bears:
Overall, market breadth favoured bears as 2,187 stocks ended in the red, while 1,899 names settled in the green.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
