The BSE benchmark Sensex fell 57 points, or 0.07 per cent, to close at 79,648.9, while the broader NSE Nifty fell 20.5 points, or 0.08 per cent, to close at 24,347.
Analysts are predicting the market trends as follows:
“Sentiment is flat to bearish with the index closing below the 21-day EMA. The RSI is at a bearish crossover, indicating weak momentum. As long as it remains below 24,500, the market is likely to continue selling on the upside. On the downside, support lies at 24,150,” said Rupak De, senior technical analyst at LKP Securities. Jatin Ghediya of ShareKhan said, “On the daily chart, we can see that Nifty is on a counter-trend pullback after a 1,200-point drop. On the upside, retracement can occur up to 24,520-24,650, which are the 50% and 61.82% Fib retracement levels of the downside. On the downside, immediate support lies at 24,210.”
That said, let’s take a look at what some key indicators suggest for Tuesday’s action.
US Market:
US stocks performed mixed on Monday as investors looked to the US Consumer Price Index to gauge future Federal Reserve policy ahead of a busy week of economic data. By 11:30 a.m. ET, the Dow Jones Industrial Average was down 165.85 points, or 0.42%, to 39,331.69, while the S&P 500 was down 2.63 points, or 0.05%, to 5,340.65. In contrast, the Nasdaq Composite Index was up 31.22 points, or 0.19%, to 16,776.53. Most of the Magnificent Seven stocks were down, with Tesla down 1.8% and Nvidia up 4%. Investors await the CPI report on Wednesday and retail sales data on Thursday. European Stocks:
Europe’s main stock indexes were little changed on Monday, erasing early gains as investors awaited U.S. inflation data that will be crucial in assessing Federal Reserve monetary policy amid continuing recession fears and a flurry of European economic data.
The Stoxx 600 index ended the day flat, recovering from a heavy sell-off in risk assets on fears of a U.S. recession following a weak performance last week. The energy and basic resources sector rose on higher oil and metals prices, while real estate lagged, down 0.9%.
Technical Perspective: Doji Candle
Nifty ended Monday’s trading session down 20.5 points and formed a doji on the daily chart, indicating an ambivalent mood on Dalal Street.
Overall, Nifty is still trading in the range of 24,000-24,400 for the past few days and we will have to wait for a breakout or breakdown on either side to know the major future direction of Nifty. Support for the index is currently seen at 24,200 and 23,950-24,000 levels. Tejas Shah, Head of Technical Research, JM Financial & BlinkX said that on the upside, the immediate resistance zone for Nifty is 24,350-400 levels and the next resistance is at 24,550 levels.
Stocks exhibiting a bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) indicated bullish trading in stocks like Gillette India, Torrent, AIA Engineering, Orchid Pharma, Bharat Rasayan, Afre India and Pitti Engineering.
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 going forward:
The MACD showed bearish signs in stocks like Divi’s Laboratories, Suven Pharma, Adani Energy Solutions, Sapphire Foods, Mastel etc. The bearish crossover of MACD in these stocks indicates that the downward path has just begun.
Most Active Stocks by Value:
RVNL (Rs 3,493 crore), HDFC Bank (Rs 3,272 crore), Adani Enterprises (Rs 3,196 crore), Voltas (Rs 2,178 crore), Adani Power (Rs 1,892 crore), Inox Wind (Rs 1,819 crore) and Adani Ports (Rs 1,382 crore) were among the most active stocks in terms of value traded on the NSE. Stocks with high volume traded in terms of value traded help identify the stocks with the highest trading volume for the day.
Most active stocks by trading volume:
Vodafone Idea (290 million shares traded), YES Bank (280 million shares traded), Suzlon Energy (130 million shares traded), HFCL (970 million shares traded), Inox Wind (920 million shares traded), IRFC (640 million shares traded) and RVNL (620 million shares traded) were among the most traded stocks during the NSE trading session.
Stocks showing buying interest:
Shares like Inox Wind, Voltas, Glenmark Life, Jubilant FoodWorks, HFCL, Welspun Corp and Bikaji Foods International hit new 52-week highs, indicating bullish sentiment and strong buying interest from market participants.
Stocks seeing selling pressure:
Equitas Small Finance Bank’s share price hit a 52-week low, signaling widespread bearish sentiment in the stock market.
Sentiment Meter Favors the Bears:
Overall, market breadth was in favor of the bears as 2,187 stocks declined and 1,899 stocks advanced.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not represent the views of The Economic Times)
