Here’s how analysts read the market pulse:
Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities, said the short-term support for Nifty was at 17,500 levels, which happens to be the 34-day EMA. “Resistance for Nifty was at 18,100-odd levels. For the last six weeks, Nifty50 has been in a tight consolidation zone. Breakouts from the 17,500-18,100 range would give directional move in Nifty,” he said.
Rupak De, Senior Technical Analyst at
, said on the higher end, 17,900 acted as resistance leading to a close near the day’s low. “The trend is likely to remain positive as long as it sustains above 17,700. On the higher end, a move above 17,900 may induce a rally towards 18,100 and higher.”
That said, here’s a look at what some key indicators are suggesting for Wednesday’s action:
US stocks fall ahead of Fed meeting
Wall Street‘s main indexes opened lower on Tuesday as investors positioned themselves for new economic projections and another large interest rate hike by the U.S. Federal Reserve this week to quell decades-high inflation.
The Dow Jones Industrial Average fell 352 points, or 1.14%. The S&P 500 shed 1.19% and the Nasdaq Composite slid 1.1%.
Banks keep European shares afloat
European shares edged higher on Tuesday, boosted by banks, while expectations of another large interest rate hike by the U.S. Federal Reserve kept risk-taking bets in check.
The pan-European STOXX 600 index added 0.1%, after a soft start to the week, with banks climbing 1.6% by 0759 GMT as lenders tend to benefit from a high interest rate environment.
Tech View: Small-bodied candle on daily charts
Nifty formed a small-bodied bullish candle with a long upper shadow on the daily scale, indicating buying interest from lows, but an absence of follow-up activity is seen at higher zones.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Sun Pharma,
, , Cipla and .
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 signalling weakness ahead
The MACD showed bearish signs on the counters of L&T Finance Holdings, Central Bank, Delta, DCW,
A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.
Most active stocks in value terms
Bajaj Finance (Rs 1,235 crore),
(Rs 1,110 crore), Infosys (Rs 1,010 crore), RIL (Rs 977 crore), HDFC Bank (Rs 819 crore), and HDFC (Rs 729 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 the highest trading turnovers in the day.
Most active stocks in volume terms
(Shares traded: 5.2 crore), (Shares traded: 1.7 crore), NTPC (Shares traded: 1.5 crore), Power Grid (Shares traded: 1.5 crore), ONGC (Shares traded: 1.3 crore) and ICICI Bank (Shares traded: 1.2 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of Cipla,
, , , , and ITC witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Shares of Mastek and
were among those that witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bulls
Overall, market breadth favoured winners as 2,071 stocks ended in the green, while 1,402 names settled with cuts.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)