The NSE Nifty settled 0.35% higher at 24,587, while the S&P BSE Sensex added 0.18% to end at 80,665. Both benchmarks have recorded consecutive record closing highs since TCS and HCLTech posted higher quarterly revenue, signaling a recovery in demand for IT companies and starting the earnings season on a strong note.
Here’s how analysts the market pulse:
“From a technical standpoint, the zone encompassing the golden ratio, denoted by 24,610, is likely to be seen as the pivot zone, and a sustainable breakthrough could only boost further momentum. On the lower end, 24,500-24,400 is expected to cushion any upcoming blips, followed by the sacrosanct support of 24,150,” said Osho Krishan, Senior Analyst – Technical & Derivatives, Angel One.
Jatin Gedia, Sharekhan by BNP Paribas, said, “On the daily charts, we can observe that Nifty is able to sustain the gains after breaking above 24,400. There can be a retest of the breakout however that should be used as a buying opportunity. The short term target of 24,610 has been achieved and hence we extend it further towards 24,840.”
That said, hereβs a look at what some key indicators are suggesting for Tuesday’s action:US market
The Dow hit a record high in Wall Street’s upbeat trading on Monday, on a greater chance of presidential candidate Donald Trump winning a second term after surviving an assassination attempt, while interest-rate cut hopes also aided sentiment.Under Trump, markets expect a hawkish trade policy and looser regulations over issues from climate change to cryptocurrency.The Dow hit a record high, boosted by a 2% gain in UnitedHealth as health insurers also jumped on a likely Trump win.
The small-cap Russell 2000 gained 1.2% to its highest since January 2022, in continued evidence of broad-based market gains.
At 9:49 a.m. ET, the Dow Jones Industrial Average was up 201.52 points, or 0.50%, at 40,202.42, the S&P 500 was up 23.67 points, or 0.42%, at 5,639.02, and the Nasdaq Composite was up 93.90 points, or 0.51%, at 18,492.34.
European shares
European shares moved lower on Monday after a raft of dour updates from companies made investors, already jittery from the assassination attempt on U.S. presidential candidate Donald Trump, more cautious.
The continent-wide STOXX 600 was down 0.1% as of 0844 GMT, snapping a three-session win streak.
European equities logged two consecutive weeks of gains on Friday with expectations of rate cuts from both, the European Central Bank and the U.S. Federal Reserve spurring risk appetite.
Focus will now be on ECB President Christine Lagarde’s remarks later in the day, ahead of the central bank’s policy meeting later this week.
Tech View: Doji candle
Nifty ended Mondayβs session with a gain of 84.5 points to form a Doji candle on the daily charts and indicate indecisiveness in the market.
The near-term trend of Nifty remains positive. Having sustained above the hurdle of 24,400 levels (1.618% Fibonacci extension), there is a higher possibility of further gradual upmove in Nifty towards 24,950 levels in the next one week. Immediate support is at 24,450, said Nagaraj Shetti of HDFC Securities.
OI data showed that on the call side, the highest OI was observed at 25,000 followed by 24,700 strike prices, while on the put side, the highest OI was at 24,500 strike price.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of LTIMindtree, Axis Bank, Banco Products, Rallis India, and Triveni Engineering & Industries 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 Abbott India, Bharat Bijlee, Godrej Properties, Tube Investment of India, and Zen Technologies 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
IRFC (Rs 3,713 crore), HDFC Bank (Rs 2,706 crore), SBI (Rs 2,226 crore), TCS (Rs 2,038 crore), ICICI Bank (Rs 1,922 crore), RVNL (Rs 1,873 crore), and HCL Tech (Rs 1,650 crore) were among the most active stocks on the 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
Vodafone Idea (Shares traded: 54 crore), YES Bank (Shares traded: 39 crore), IRFC (Shares traded: 17 crore), NHPC (Shares traded: 14 crore), Bank of Maharashtra (Shares traded: 12 crore), IOB (Shares traded: 8 crore), and SJVN (Shares traded: 6 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of Godfrey Philips, HBL Power, KSB, NLC India, Castrol India, Vardhan Textiles, and ONGC among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure
No major shares hit their 52-week lows on Monday.
Sentiment meter favours bulls
Overall, market breadth favoured bulls as 2,036 stocks ended in the green, while 2,004 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)
Source link
