Here’s what analysts are predicting for the market:
“Going forward, the market direction will largely depend on upcoming earnings reports and Union Budget discussions. Global market developments, particularly the robust performance of the US market, will also be closely watched,” said Ajit Mishra, SVP, research, Religare Broking.
“We expect that benchmark Nifty may go through a period of consolidation over the next few days, which may ease off marginal parameters. Market sentiment remains positive with sector rotation contributing to the strong underlying trend. We expect this trend to continue barring any unexpected developments in the global markets. In the meantime, traders are advised to remain vigilant and steadily book profits at regular intervals,” said Osho Krishan, Senior Analyst, Technical & Derivatives, Angel One.
That said, let’s take a look at what some key indicators suggest for Tuesday’s action.
US Market
On Friday, the S&P 500 and Nasdaq hit new highs after official data showed the U.S. labor market was steadily cooling, raising hopes of a September interest rate cut. Wall Street’s major indexes closed in positive territory, with the Nasdaq Composite up 0.9% to 18,352.76 and the S&P 500 up 0.5% to 5,567.19. European stocks
European stocks fell on Friday, weighed down by losses in banking and energy shares as investors turned cautious ahead of the second round of French parliamentary elections.
The pan-European STOXX 600 index ended down 0.2% after hitting a more than one-week high in the morning, although the index was up 1% for the week.
Tech View
The underlying trend for Nifty remains positive. An upside breakout hurdle is likely to emerge around 24400-24500 levels in the next few sessions. The immediate support is at 24170 levels, said Nagaraj Shetti, HDFC Securities.
Stocks showing bullish trends
Momentum indicator Moving Average Convergence Divergence (MACD) indicated bullish trading in stocks like Rail Vikas Nigam, Vardhman Textiles, BEML, Thermax, Indian Railway Finance and Paytm.
The MACD is known to signal trend reversals in the securities and indices being traded. When the MACD rises above its signal line, it signals a bullish trend, indicating that the security’s price may rise, and vice versa.
Stock prices signal weakness ahead
MACD showed bearish signs in stocks like FACT, Siemens, Alok Industries, Bayer CropScience, Bajaj Finserv and Can Fin Homes. The bearish crossover of MACD in these stocks indicates that the downward trend has just begun.
Most Active Stocks by Value
RVNL (Rs 71,311 crore), HDFC Bank (Rs 6,812 crore), Mazagon Dock Ship (Rs 5,468 crore), Indian Railway Fins (Rs 4,183 crore), Cochin Shipyards (Rs 3,569 crore), Ircon International (Rs 3,523 crore) and BEML (Rs 3,462 crore) were among the most active stocks in terms of value traded on the NSE.High volume stocks in terms of value traded help identify the stocks with the highest trading volume for the day.
Most traded stocks
YES Bank (shares traded: 985 million shares), Vodafone Idea (shares traded: 492 million shares), Indian Railway Fin (shares traded: 224 million shares), RVNL (shares traded: 152 million shares), Ircon (shares traded: 116 million shares), Suzlon (shares traded: 96 million shares) and HFCL (shares traded: 81 million shares) were some of the most traded stocks during the session on NSE.
Stocks showing buying interest
Shares of RVNL, Vardhman Textiles, Ircon International, Raymond, BEML, CG Power and RailTel Corp rose to their highest 52-week levels, indicating bullish sentiments and strong buying interest among market participants.
Stocks under selling pressure
No companies hit a 52-week low on Friday.
Sentiment Meter Favors Bears
Overall, market breadth was in favor of bulls as 2,162 stocks rose and 1,772 declined.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not represent the views of The Economic Times)
