After a volatile session, headline equity indices ended mixed on Monday. Nifty ended 0.14% higher at 18,691, while Sensex ended with a marginal cut at 62,970. Broader markets posted a decent rally with Nifty Midcap100 recording around 1% gains.
“The global market exhibited a negative bias as concerns regarding economic growth emerged in the light of the political instability in Russia. This instability led to an increase in oil prices, driven by worries over potential supply disruptions, given Russia’s status as one of the largest oil producers. On the domestic front, the market experienced limited downside as the pharma and auto sectors provided support. Additionally, mid and small-cap stocks were seen recovering their positions following a recent sell-off, indicating a regained investor confidence in these segments,” Vinod Nair, Head of Research at Geojit Financial Services, said.
“The 20-day EMA around 18,650 has been active in the last couple of months and minor upside bounce could be expected in the short term. However, any weakness below this support at 18,650 levels is likely to bring the next round of weakness in the market. Immediate resistance is placed at 18,760 levels,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.
That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:
US market
The S&P 500 and Nasdaq climbed on Monday, with chipmakers and energy stocks leading a rebound as investors shrugged off geopolitical risks and assessed the outlook for U.S. monetary policy.
After a subdued start on Monday, stocks picked up some momentum, with energy stocks jumping 1.3% as oil prices steadied following an aborted revolt by Russian mercenaries over the weekend, which the market did not view as an immediate threat to oil supply.
European shares
European shares fell on Monday, with defence stocks leading declines after an aborted mutiny in Russia over the weekend, while financial stocks dragged on mounting concerns of global interest rates staying higher for longer.
The pan-European STOXX 600 index was down 0.4% by 0828 GMT, at a three-month low and extending losses to the sixth straight session.
Tech View: Small positive candle
A small positive candle was formed on the daily chart with open and close for the day at the same. Technically, this pattern signals a formation of Doji or high wave type candle after small weakness. The immediate support of 10-day EMA has been broken on the down side on Friday at 18750 levels and the Nifty is currently placed at the next crucial support of 20day EMA around 18650 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Orient Green Power, IEX, Aurobindo Pharma, City Union Bank and Bharti Airtel 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 Coffee Day Enterprises, Paytm, Graphite India, SBI Life and Tata Communications. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
Adani Enterprises (Rs 1792 crore), RIL (Rs 1458 crore), HDFC Bank (Rs 1321 crore), HDFC (Rs 1133 crore), and ICICI Bank (Rs 1089 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 highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Shares traded: 12.11crore), Suzlon Energy (Shares traded: 9.30 crore), Reliance Power (Shares traded: 8.62 crore), YES Bank (Shares traded: 6.94 crore), and SJVN (Shares traded: 4.58 crore) among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of ICICI Securities, SJVN, JBM Auto, Policy Bazaar and V-Guard 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 Eros Media, CMI, Kore Digital, Accuracy Shipping and Kshitij Polyline, among others, hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bulls
Overall, market breadth favoured bulls as 1,783 stocks ended in the red, while 1,860 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 Economic Times)
