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Market Ahead: Ahead of Market: 12 things that will decide stock action on Tuesday


NEW DELHI: Nifty50 on Monday formed a bullish candle on the daily chart, as the index managed to recoup the 17,000-point mark in style after a wobbly start to the session.


Here’s how analysts read the market pulse:

Gaurav Ratnaparkhi of Sharekhan said, Nifty50 received support as it reached the hourly lower Bollinger Band and took a leap back to the hourly upper Bollinger Band that capped upside for the day.

Mazhar Mohammad of Chartviewindia.in said that the last two trading sessions of price behaviour are hinting that dip-buyers might have returned to the Street. “A failure to sustain above 17,000 level on a closing basis can induce some weakness,” he said.

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


S&P 500 hits all-time high on retail sales cheer


The S&P 500 hit a record high on Monday, as a strong retail sales report underscored the strength of the economy and overshadowed worries from Omicron-driven flight cancellations at the start of this year’s final trading week. At 9:48 a.m. ET, the Dow Jones Industrial Average was up 119.06 points, or 0.33 per cent, at 36,069.62 and the S&P 500 was up 24.64 points, or 0.52 per cent, at 4,750.43. The Nasdaq Composite was up 84.21 points, or 0.54 per cent, at 15,737.59. Main stock indexes in the United States are eyeing a third straight yearly gain, with the benchmark S&P 500 on track to close out the year 26.4 per cent higher.


European shares inch up in thin trading

European shares edged up in holiday-thinned trading on Monday, with Swiss drugmaker Roche rising on regulatory approval for certain COVID-19 products, although concerns around rising Omicron infections capped gains. The pan-European STOXX 600 rose 0.63 per cent, while London’s FTSE 100 index closed flat.



Tech View: More upside possible


Analysts see the potential for more upside in Nifty50 after it sent a buy signal on the MACD indicators. Analysts suggested that a positive momentum indicator could help the index rise to 17,350-17,450 points in the coming sessions.


F&O: Traders optimistic


In the derivatives segment, traders covered their short positions in the out-of-money call options of the Nifty50 index suggesting optimism for more gains in the coming session. However, traders were sellers of call options beyond the 17,500 strike price, which could act as a resistance.


Stocks showing bullish bias


Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of GMR Infra, Ashoka Buildcon, Vikas Lifecare, Bliss GVS, Tata Coffee and Motherson Sumi.

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 Siemens, Agro Phos India, Country Club, Premier and Tata Communication. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.


Most active stocks in value terms


RBL Bank (Rs 2727 crore), IndusInd Bank (Rs 1029 crore), Tech Mahindra (Rs 794 crore), Zee Entertainment (Rs 724 crore), Bajaj Finance (Rs 620 crore) and Tata Motors (Rs 587 crore) were among the most active stocks on Dalal Street 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


RBL Bank (Shares traded: 19.1 crore), Vodafone Idea (Shares traded: 13.4 crore), GMR Infra (Shares traded: 10.3 crore), YES Bank (Shares traded: 6.2 crore), PNB (Shares traded: 4.3 crore) and IDFC First Bank (Shares traded: 3.2 crore) were among the most traded stocks in the session.


Stocks showing buying interest


KPR Mill, GMR Infra, P&G, Navin Fluorine, Saregama India and Tata Tele witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.


Stocks seeing selling pressure


RBL Bank, Gillette India, Glenmark Life, Aditya Birla Sun Life AMC and Whirlpool of India witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on these counters.


Sentiment meter favours bulls


Overall, market breadth was in favour of gainers as 268 stocks ended in the green on the Nifty500 index, while 232 names settled with cuts.


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The BSE barometer Sensex gyrated in the range of 970 points. It surged close to 300 points to settle above 57,420 level. Its broader peer, Nifty50, gained more than 80 points to settle just 14 points shy of 17,100 mark. Broader markets performed in line with the headline peers. Meanwhile, fear gauge India VIX spiked 6 per cent to above 17 levels.



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