NEW DELHI: Bulls have managed to get upper hand in the last couple of sessions but the threat of a lockdown due to sharply increasing Covid-19 cases is still real that may hit revenue of businesses and give ammunition to bears.
Here’s how analysts read the market pulse:-
Gaurav Ratnaparkhi of Sharekhan said Nifty50 had surpassed a falling trendline as well as the 40 day EMA on December 31, which indicated the bulls were having an upper hand.
Chandan Taparia of Motilal Oswal said having a decisive close above 50-Day EMA and surpassing the falling supply trend line on a daily scale is a positive but the index needs to hold above 17,500 for an up move towards 17,777 and 17,900. The analyst sees supports at 17,350 and 17,200 levels.
That said, here’s a look at what some of the key indicators are suggesting for Tuesday’s action:
US shares off to a positive start
Wall Street stocks rose early Monday, opening 2022 on a positive note as markets weighed the latest Covid-19 case trends and awaited key economic data.
The broad-based S&P 500 advanced 0.2 per cent at 4,777.89, while the tech-rich Nasdaq Composite Index dropped 0.5 per cent to 15,720.95.
Investors are also eyeing this week’s economic calendar which includes reports on the manufacturing and services sector, as well as US jobs data for December.
European shares surge on strong economic data
London’s traders enjoyed their final day of festive rest, but mainland Europe made a lively start, notching an all-time peak for the STOXX 600 index after an encouraging flurry of euro zone and eastern European data.
The euro zone’s Manufacturing Purchasing Managers’ Index (PMI) dipped to 58.0 in December from November’s 58.4, but it matched an initial “flash” estimate despite the recent surge in coronavirus infections and was still comfortably above the 50 mark separating growth from contraction.
Bourses in Germany, France, Italy and Spain rose between 0.9 per cent and 1.3 per cent.
Tech View: Silid bullish candle
Nifty50 on Monday formed a solid bullish candle on the daily chart and, in the process, it took out its 50-day moving average on a closing basis. Analysts said a hold above 17,600 level can push the index towards 18,000 level. They see support for the index in the 17,350-400 range.
F&O: 17,500 sees accumulation of support
In the derivatives segment, the 17,500 strike Put saw a lot of activity, the largest change in open interest, meaning a support is building there. On the other hand, 17,900-18,000 call options have seen activity, becoming the nearest targets for bulls.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of PNB, BHEL, Federal Bank, Tata Power, Minda Corporation, Oriental Hotels and Greaves Cotton.
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 KEI Industries, Axiscades Tech, Gateway Distriparks, Apar Industries and ISMT. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
Tata Motors (Rs 1626 crore), Bajaj Finance (Rs 906 crore), TCS (Rs 893 crore), RBL Bank (Rs 892 crore), ICICI Bank (Rs 731 crore) and HDFC Bank (Rs 684 crore) were among the most active stocks on Dalal Street 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
Vodafone Idea (Shares traded: 39 crore), YES Bank (Shares traded: 23 crore), RBL Bank (Shares traded: 7 crore), GMR Infra (Shares traded: 4 crore), Suzlon Energy (Shares traded: 4 crore) and PNB (Shares traded: 4 crore) were among the most traded stocks in the session.
Stocks showing buying interest:
Minda Corp, Rajesh Exports, Tube Investments, Vardhman Textiles, Anupam Rasayan and eClerx Services witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure
MAS Financial Services witnessed strong selling pressure and hit its 52-week lows, signaling bearish sentiment on the counter.
Sentiment meter favours bulls
Overall, market breadth was in favour of gainers as 2,687 stocks ended in the green, while 874 names settled with cuts.