Here’s how analysts read the market pulse:
Mazhar Mohammad of Chartviewindia.in said Nifty50 is trying to form a consolidation range in the 17,380-250 region. “If Nifty sustains above 17,250, a sideways move with a positive bias is likely for the index,” he said.
Independent analyst Manish Shah said Nifty50 may need to break above 17,450 to witness a rally towards 17,720-17,820. “Support for Nifty is seen at 17,250-17,270, a tested zone that the index has held on for several days,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Tuesday’s action:
Energy, financials lift Wall Street
Wall Street indexes on Monday rose from their worst week in several months, with economically sensitive stocks leading gains as focus turned to potential changes to corporate tax and monetary policy.At 09:51 am ET, the Dow Jones Industrial Average rose 271.31 points, or 0.78 per cent , to 34,879.03, the S&P 500 gained 21.74 points, or 0.49 per cent, to 4,480.32 and the Nasdaq Composite gained 11.51 points, or 0.08 per cent, to 15,127.01.
European stocks snap 4-day losing streak
European stocks ended higher for the first time in five days on Monday, as oil, banks and utility shares gained on hopes that a strong euro zone economic recovery would outweigh risks from a global slowdown. The pan-European STOXX 600 index was up 0.3 per cent after hitting a three-week low last week. Asian stocks, however, fell following news of fresh regulatory crackdown on Chinese firms.
Tech View: Nifty50 forms indecisive candle
Nifty50 formed a Doji candle on the daily chart, suggesting indecisiveness among market participants. Analysts said a consolidation on the index is underway as seen in the tight trading range for the last five sessions. A fall below 17,250 can trigger weakness, they warned, adding that a breach of the 17,400-450 range would give the bulls an upper hand.
F&O: India VIX needs to hold below 13-level
India VIX moved up 0.61 per cent from 13.94 to 14.02 level. India VIX needs to hold below the 13 level to continue the bullish momentum. Options data suggested a broader trading range between 17,000 and 17,800 levels, while the immediate trading range was seen between 17,200 and 17 500 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Vedanta, Ujjivan Financial, Syngene International, JSW Steel, Zensar Technologies, North Eastern Carry, Sarla Performance, Schneider Electric, PNB Gilts, JTEKT India, Sasken Technologies, Poddar Pigments, D P Wires, Thyrocare Tech, Deccan Cements, P&G Health, Advani Hotels, Orbit Exports, Prataap Snacks, Aarti Surfactants, Sangam India, Bafna Pharmaceutical, Nxtdigital, Tainwala Chem and SIL Investments.
The MACD is known for signalling 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 ICICI Bank, Canara Bank, Tata Consultancy Services, SBI Cards and Pay,
, Jamna Auto Industries, Aptech, ICICI Securities, , Kajaria Ceramics, , Phoenix Mills, Torrent Pharma, Alicon Castalloy, Punjab Chemicals and Nilkamal. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
RIL (Rs 1793.03 crore), IRCTC (Rs 1622.07 crore), Bharti Airtel (Rs 1338.86 crore), HDFC (Rs 937.41 crore), Tata Steel (Rs 823.09 crore), Hindalco (Rs 791.12 crore), Infosys (Rs 787.64 crore), MindTree (Rs 754.64 crore), HDFC Bank (Rs 699.01 crore) and TCS (Rs 647.54 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 highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Shares traded: 35.74 crore), Dish TV India (Shares traded: 13.69 crore), YES Bank (Shares traded: 11.57 crore), NALCO (Shares traded: 3.95 crore), Coal India (Shares traded: 3.57 crore), SAIL (Shares traded: 3.53 crore), Trident (Shares traded: 3.50 crore), IDFC (Shares traded: 2.46 crore), Suzlon Energy (Shares traded: 2.33 crore) and BHEL (Shares traded: 2.16 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Balaji Amines, Sona BLW Precision Forgings, JSW Energy, Laxmi Organic Industries and Orient Refractories witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
ABM International, Nandani Creation, Krsnaa Diagnostics and Varroc Engineering witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls
Overall, the market breadth remained in favour of the bulls. As many as 283 stocks on the BSE500 index settled the day in the green, while 210 settled the day in the red.
Podcast: Should you take some money off the table?
BSE Sensex declined about 130 points, settling at 58,178. Nifty50 gave up 14 odd points to end the day at about 17,350. Broader markets outperformed as BSE midcap and smallcap indices added up to a per cent each. Fear gauge India VIX gained up to a per cent, crossing 14-level. The market kicked off the week on a volatile note. What to expect in the days ahead? Is this the right time to take some money off the table?