Indian benchmark indices Nifty50 and Sensex ended lower on Monday as weak earnings and renewed profit-booking offset a post-results rally in top private lender HDFC Bank.
The Nifty50 fell 0.29% to 24,781, while the BSE Sensex closed 0.09% lower at 81,151. Both indices fluctuated between early gains of around 0.4% and a midday decline of nearly 0.7%, before staging a partial recovery.
Here's how analysts read the market pulse:
"Nifty remained volatile throughout the day as traders were uncertain about the market direction. On the higher end, it found resistance at the 50EMA on the daily time frame. Additionally, the index failed to move beyond 25000, which led to selling pressure that pushed it down to 24700. If Nifty falls below 24700, the selling pressure may intensify. However, if it holds above 24700, a smart recovery toward 25050 could be expected," said Rupak De of LKP Securities.
Jatin Gedia of Sharekhan, said, "Nifty witnessed selling pressure from the 25000 mark which coincides with high concentration of open interest on the call side implying resistance. On the downside the 20 week average (24730) which was defended well last week is being tested again. So there is a standoff between bulls and bears leading to heightened volatility. Overall, we expect a rangebound price action in the range 24500 – 25200 from short term perspective."
That said, here’s a look at what some key indicators are suggesting for Tuesday's action:
US market:
Wall Street stocks fell slightly early Monday as major indices retreated from record highs in anticipation of a busy earnings week featuring Tesla and Boeing. Meanwhile, China's central bank announced cuts to two key interest rates, bringing them to historic lows in a bid to boost the economy.
Boeing shares surged nearly five percent after labor negotiators reached an agreement to present a new contract to 33,000 workers in the Seattle area, potentially ending the month-long machinist union strike.
European shares:
Europe's STOXX 600 index dropped 0.6% ahead of results from German giant SAP, which could influence a busy earnings week on both sides of the Atlantic.
The British pound and the euro each fell about 0.2% against the dollar, while the U.S. dollar surpassed the 150 mark against the yen, rising 0.25% for the day.
Tech View:
A small reasonable candle was formed on the daily chart with a minor lower shadow. Technically this pattern indicates a lack of strength in the market to show a sustainable upside bounce. The market is still in a broader high-low range since the last few weeks.
The underlying trend of Nifty remains weak amidst range movement. Having failed to sustain the recent upside bounce, the market could revisit the lower range of 24,600-24,500 levels in the near term. Immediate resistance is at 25,000 levels, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 24,900 and 24,800 strike prices, while on the put side, the highest OI was at 24,700 strike price followed by 24,500.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Olectra Greentech, Tata Chemicals, Heritage Foods, Aster DM Healthcare, and HDFC Bank among others.
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 signaling weakness ahead:
The MACD showed bearish signs on the counters of Apar Industries, Shakti Pumps, Persistent Systems, OFSS, Prataap Snacks, Whirlpool of India, and Symphony among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms:
HDFC Bank (Rs 4,033 crore), Amber Enterprises (Rs 2,784 crore), Kotak Bank (Rs 2,342 crore), Mazagon Dock Ship (Rs 2,327 crore), Zomato (Rs 2,303 crore), Tata Chemicals (Rs 2,275 crore), and Bajaj Auto (Rs 2,186 crore) among others 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 highest trading turnovers in the day.
Most active stocks in volume terms:
Zomato (Shares traded: 8.8 crore), YES Bank (Shares traded: 6.7 crore), RBL Bank (Shares traded: 6.3 crore), JM Financial (Shares traded: 5.6 crore), JP Power (Shares traded: 5.3 crore), Manappuram Finance (Shares traded: 3 crore), and IDFC First Bank (Shares traded: 2.7 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Amber Enterprises, Suven Pharma, Netweb Technologies, MCX, Tech Mahindra, Dixon Technologies, and Aditya Birla Real Estate among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
Shares of Ujjivan Small Finance Bank, RBL Bank, IndusInd Bank, J&K Bank, IDFC First Bank, Equitas Small Finance Bank, and CreditAccess Grameen hit their 52-week lows, signaling bearish sentiment on the counter.
Sentiment meter bears:
Overall, market breadth favoured bears as 1,102 stocks ended in the green, while 2,948 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 the Economic Times)
The Nifty50 fell 0.29% to 24,781, while the BSE Sensex closed 0.09% lower at 81,151. Both indices fluctuated between early gains of around 0.4% and a midday decline of nearly 0.7%, before staging a partial recovery.
Here's how analysts read the market pulse:
"Nifty remained volatile throughout the day as traders were uncertain about the market direction. On the higher end, it found resistance at the 50EMA on the daily time frame. Additionally, the index failed to move beyond 25000, which led to selling pressure that pushed it down to 24700. If Nifty falls below 24700, the selling pressure may intensify. However, if it holds above 24700, a smart recovery toward 25050 could be expected," said Rupak De of LKP Securities.
Jatin Gedia of Sharekhan, said, "Nifty witnessed selling pressure from the 25000 mark which coincides with high concentration of open interest on the call side implying resistance. On the downside the 20 week average (24730) which was defended well last week is being tested again. So there is a standoff between bulls and bears leading to heightened volatility. Overall, we expect a rangebound price action in the range 24500 – 25200 from short term perspective."
That said, here’s a look at what some key indicators are suggesting for Tuesday's action:
US market:
Wall Street stocks fell slightly early Monday as major indices retreated from record highs in anticipation of a busy earnings week featuring Tesla and Boeing. Meanwhile, China's central bank announced cuts to two key interest rates, bringing them to historic lows in a bid to boost the economy.
Boeing shares surged nearly five percent after labor negotiators reached an agreement to present a new contract to 33,000 workers in the Seattle area, potentially ending the month-long machinist union strike.
European shares:
Europe's STOXX 600 index dropped 0.6% ahead of results from German giant SAP, which could influence a busy earnings week on both sides of the Atlantic.
The British pound and the euro each fell about 0.2% against the dollar, while the U.S. dollar surpassed the 150 mark against the yen, rising 0.25% for the day.
Tech View:
A small reasonable candle was formed on the daily chart with a minor lower shadow. Technically this pattern indicates a lack of strength in the market to show a sustainable upside bounce. The market is still in a broader high-low range since the last few weeks.
The underlying trend of Nifty remains weak amidst range movement. Having failed to sustain the recent upside bounce, the market could revisit the lower range of 24,600-24,500 levels in the near term. Immediate resistance is at 25,000 levels, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 24,900 and 24,800 strike prices, while on the put side, the highest OI was at 24,700 strike price followed by 24,500.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Olectra Greentech, Tata Chemicals, Heritage Foods, Aster DM Healthcare, and HDFC Bank among others.
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 signaling weakness ahead:
The MACD showed bearish signs on the counters of Apar Industries, Shakti Pumps, Persistent Systems, OFSS, Prataap Snacks, Whirlpool of India, and Symphony among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms:
HDFC Bank (Rs 4,033 crore), Amber Enterprises (Rs 2,784 crore), Kotak Bank (Rs 2,342 crore), Mazagon Dock Ship (Rs 2,327 crore), Zomato (Rs 2,303 crore), Tata Chemicals (Rs 2,275 crore), and Bajaj Auto (Rs 2,186 crore) among others 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 highest trading turnovers in the day.
Most active stocks in volume terms:
Zomato (Shares traded: 8.8 crore), YES Bank (Shares traded: 6.7 crore), RBL Bank (Shares traded: 6.3 crore), JM Financial (Shares traded: 5.6 crore), JP Power (Shares traded: 5.3 crore), Manappuram Finance (Shares traded: 3 crore), and IDFC First Bank (Shares traded: 2.7 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Amber Enterprises, Suven Pharma, Netweb Technologies, MCX, Tech Mahindra, Dixon Technologies, and Aditya Birla Real Estate among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
Shares of Ujjivan Small Finance Bank, RBL Bank, IndusInd Bank, J&K Bank, IDFC First Bank, Equitas Small Finance Bank, and CreditAccess Grameen hit their 52-week lows, signaling bearish sentiment on the counter.
Sentiment meter bears:
Overall, market breadth favoured bears as 1,102 stocks ended in the green, while 2,948 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 the Economic Times)
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