Here’s a look at what some of the key indicators are suggesting for Wednesday's action.
Getty Imagesif Nifty manages to hold above 11,050 level, then buying interest could emerge and take it towards 11,250 level.
NEW DELHI: Nifty snapped a four-day losing streak on Tuesday and formed a bullish candle on the daily chart. Analysts said the index negated the formation of lower highs and lows of the last few sessions, which is a positive signal for the bulls.
Chandan Taparia of MOFSL said if Nifty manages to hold above 11,050 level, then buying interest could emerge and take it towards 11,250 level. On the downside, support exists in the 10,900-10,880 zone.
Vinod Nair of Geojit Financial Services said India’s economic activities are showing signs of revival, which offset concerns about rising virus infections and the uncertainties that this brings along.
“The market may look to consolidate, but as things stand, the current liquidity can ensure that any corrections get bought into,” he said.
Nagaraj Shetti of HDFC Securities said Nifty50 has the potential to move towards its recent swing high of 11,340 in the near term.
That said, here’s a look at what some of the key indicators are suggesting for Wednesday's action: Escalating Sino-US tensions strain US stocks The S&P 500 and Dow were subdued on Tuesday as Sino-US tensions escalated following President Donald Trump's moves to force a sale of TikTok's US operations, with investors also disappointed by quarterly results from Ralph Lauren and AIG. The Dow Jones Industrial Average was down 19.32 points, or 0.07%, at 26,645.08, while the S&P 500 was up just 0.28 points, or 0.01%, at 3,294.89.
Gloomy earnings hit European stocks European shares slipped on Tuesday as disappointing earnings reports from Diageo and Bayer took the shine off a jump in growth-linked cyclical stocks, while investors awaited signs of progress on more US fiscal stimulus. The pan-European STOXX 600 slipped 0.2% overall, with UK and German stocks both down.
Tech View: Nifty forms bullish candle Nifty50 surged 2 per cent to snap a four-day losing streak on Tuesday. The index formed a bullish candle on the daily chart and negated the formation of lower highs and lows of last four sessions. The index had ended near its 200-day moving average in the previous session, which played a role in its comeback on Tuesday. Analysts said follow-up buying would confirm the upside momentum.
F&O: VIX shows bulls buying on dips India VIX fell 5.97 per cent to 23.67 level. A decline in VIX from its recent bounce to 25.69 suggests the bulls are using any decline as a buying opportunity and the overall trend remains bullish. Options data suggested a trading range between 10,800 and 11,300 levels over the next few sessions.
Stocks showing bullish bias Momentum indicator Moving Average Convergence Divergence (MACD) on Tuesday showed bullish trade setup on the counters of Vedanta, Motherson Sumi Systems, Future Retail, Adani Ports, Adani Gas, Jyothy Labs, Magma Fincorp, Dwarikesh Sugar, GSFC, Uflex, Avanti Feeds, InterGlobe Aviation, Gujarat Gas, GNA Axles, Nectar Lifesciences, Apex Frozen Foods, Suven Life Sciences, Cosmo Films, Graphite India Ltd, NCL Industries, Godrej Properties, Sarda Energy & Miner, Bombay Burmah, Jindal Poly Films, Apollo Micro Systems, Godawari Power, J B Chemicals, Siyaram Silk, Vishnu Chemicals, Orient Electric, Maan Aluminium, VST Industries, APL Apollo Tubes, Bhagyanagar Properties, Nath Bio-Genes and Mahindra Holidays, among others.
Stocks signalling weakness ahead The MACD showed bearish signs on the counters of Infosys, Tata Consultancy, Karur Vysya Bank, PVR, Infibeam Avenues, Dalmia Bharat Sugar, Quess Corp, Kajaria Ceramics, Eicher Motors, Poly Medicure, Nesco, Ucal Fuel System and Garware Tech Fibres. 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 8911.31 crore) , HDFC Bank (Rs 3133.47 crore) , Bajaj Finance (Rs 2146.50 crore) , Tata Motors (Rs 1083.32 crore) , ICICI Bank (Rs 1074.93 crore) , Infosys (Rs 1057.43 crore) , IndusInd Bank (Rs 1056.72 crore) , Axis Bank (Rs 1048.46 crore) , BPCL (Rs 1033.88 crore) and SBI (Rs 841.30 crore) were among the most active stocks on Dalal Street on Tuesday in value terms.
Most active stocks in volume terms Vodafone Idea (shares traded: 32.85 crore) , YES Bank (shares traded: 15.63 crore) , Tata Motors (shares traded: 9.59 crore) , ZEEL (shares traded: 4.89 crore) , SBI (shares traded: 4.39 crore) , RIL (shares traded: 4.25 crore) , Future Consumer (shares traded: 3.77 crore) , BHEL (shares traded: 3.41 crore) , IDFC First Bank (shares traded: 3.28 crore) and ICICI Bank (shares traded: 3.08 crore) were among the most traded stocks in the session.
Stocks seeing buying interest Vaibhav Global, MCX India, Essel Propack, Alkem Laboratories and Hathway Cable witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Tuesday signalling bullish sentiment.
Stocks seeing selling pressure Aarti Surfactants, Borosil and Mittal Life Style witnessed strong selling pressure in Tuesday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls Overall, market breadth remained in favour of bulls. As many as 334 stocks on the BSE 500 index settled the day in green, while 161 settled the day in red.
Resuming their upmove after four days of consolidation, equity benchmarks advanced 2 per cent on Tuesday, led by solid gains in index heavyweights RIL and HDFC Bank. However, some selling in Infosys, HCL Technologies and Tech Mahindra capped the upside. Sensex ended the session 748 points higher at 37,688, while Nifty gained 203 points to 11,095. Can the market sustain at these levels? Mayuresh Joshi of William O'Neil India probes the pros and cons.
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