ahead of market: Ahead of Market: 10 things that will decide D-St action on Wednesday

Recording its biggest single-day gain since May 17, the Nifty50 ended 1.88 per cent higher near the 15,650 mark. All sectoral indices saw renewed buying with media, oil & gas, PSU banks, metals, IT, consumer durables and realty rallying 3-5 per cent each.

Here’s how analysts read the market pulse:

Deepak Jasani, Head of Retail Research, HDFC Securities, said 15,670-15,740 could be a near-term resistance for the Nifty. “Once this band is breached, 15,863-15,886 could be the next resistance. Investors may prepare a list of stocks that they would like to offload in this bounce to raise cash. Nervousness in the markets will keep coming up unless we see signs of inflation stabilising and reversing globally, which can be an early sign of bottom formation,” he said.

Ajit Mishra, VP – Research, Religare Broking, said a decisive move above 15,700 in Nifty can further fuel the rebound to the 16,000 zone, else the decline would resume. “Stocks, on the other hand, are offering opportunities on both sides, so traders should plan accordingly,” he said.

That said, here’s a look at what some key indicators are suggesting for Wednesday’s action:

Dow jumps 400 points
US stock indexes opened higher on Tuesday as investors returned from a long weekend to scoop up shares of megacap growth companies and banks that were hammered in a rout last week on worries over a global economic downturn.

The Dow Jones Industrial Average jumped 411 points, or 1.4%. The S&P 500 climbed 1.7%, and Nasdaq 100 futures popped 1.8%. U.S. stock markets were closed Monday for Juneteenth.

European markets climb

European equities extended gains on Tuesday, helped by chemical and commodity-linked sectors, as last week’s brutal selloff on recession fears attracted investors looking for bargains.

The pan-European STOXX 600 index rose 1%, stretching gains to a third session after hitting a more than one-year low last week.

Tech View: Bullish candle

Nifty50 formed a bullish candle on the daily chart. The index was stuck in a range of 15,200-15,400 for the last couple of sessions. But Tuesday’s gap-up opening helped the index surpass the hurdle and has entered the resistance zone of 15,670-15,700.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of

, Linde India, Coforge, MindTree, , and .

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 signalling weakness ahead

The MACD showed bearish signs on the counters of

, , Emami, Westlife Dev, and DCM Shriram. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks in value terms

(Rs 1,386 crore), Tata Steel (Rs 1,092 crore), TCS (Rs 949 crore), ICICI Bank (Rs 931 crore), Infosys (Rs 907 crore), and HDFC Bank (Rs 887 crore) 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 the highest trading turnovers in the day.

Most active stocks in volume terms
NTPC (Shares traded: 5.1 crore), ONGC (Shares traded: 2 crore), Hindalco (Shares traded: 1.5 crore),

(Shares traded: 1.5 crore), ITC (Shares traded: 1.5 crore) and SBI (Shares traded: 1.5 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of

, JWL and , among others, witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Dhani Ibull Ventures,

, JK Cement, , , and BPCL witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured winners as 2,477 stocks ended in the green, while 853 names settled with cuts.

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