Benchmark equity indices Nifty50 and Sensex extended their gains for the fifth straight session, with the latter ending at a fresh record high in a volatile market on Monday, led by financials, auto, and energy stocks.
The NSE Nifty 50 index rose as much as 0.66% to a record level of 22,186, before settling 0.37% higher at 22,122. The S&P BSE Sensex gained 0.39% to 72,708, about 1% shy of an all-time high of 73,427.
Here’s how analysts read the market pulse:
“Nifty has managed to surpass the hurdle of 22,150 but failed to close above the same. For the index to continue its upward momentum, it would be crucial for the private banking majors to participate and contribute to the move. We maintain our view to stay focused on stock selection and refrain from aggressive bets until Nifty decisively close above 22150,” said Ajit Mishra, Religare Broking.
Rupak De, LKP Securities, said, “Nifty has surpassed the swing high on the hourly chart, signaling an increase in optimism. Additionally, the consolidation observed in recent days has concluded with an upside breakout. The momentum indicator RSI is also suggesting a positive shift in momentum. The overall sentiment appears to position Nifty for a potential upward movement towards 22,500-22,600 in the short term. The immediate crucial support is situated at 22,000.”
That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:
– European Shares: European stocks slipped with French stocks taking a hit after the government cut its annual economic growth forecast, while shares of car parts maker Forvia rose following an upbeat outlook and on plans to trim its workforce.
– Tech View: Ascending Triangle pattern: Nifty today ended 82 points higher at fresh peaks to form an Ascending Triangle pattern on the daily chart. Nifty has surpassed the swing high on the hourly chart, signaling an increase in optimism. The momentum indicator RSI is also suggesting a positive shift in momentum.
– Stocks showing bullish bias: Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Rain Industries, Quess Corp, Delta Corp, Patanjali Foods, Meghmani Finechem, and Just Dial among others.
– Stocks signaling weakness ahead: The MACD showed bearish signs on the counters of Sonata Software, Sanofi India, Aarti Drugs, Voltas, Cyient, and RIL among others.
– Most active stocks in value terms: HDFC Bank (Rs 2,447 crore), SBI (Rs 1,060 crore), RIL (Rs 987 crore), ICICI Bank (Rs 975 crore), Coal India (Rs 933 crore), Bajaj Auto (Rs 890 crore), and Bajaj Finance (Rs 886 crore) among others were among the most active stocks on NSE in value terms.
– Most active stocks in volume terms: Coal India (Shares traded: 1.9 crore), HDFC Bank (Shares traded: 1.7 crore), Tata Steel (Shares traded: 1.7 crore), ITC (Shares traded: 1.7 crore), ONGC (Shares traded: 1.5 crore), SBI (Shares traded: 1.4 crore), and BPCL (Shares traded: 1.2 crore) among others were among the most traded stocks in the session on NSE.
– Stocks showing buying interest: Shares of Bajaj Auto, Cipla, Dr Reddy’s Laboratories, Adani Enterprises, Maruti Suzuki, Adani Ports, and Wipro among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
– Stocks seeing selling pressure: No major stock hit its 52-week low on Monday.
– Sentiment meter favours bulls: Overall, market breadth favored bulls as 2,363 stocks ended in the green, while 1,604 names settled in the red.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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