The NSE Nifty 50 index rose 0.13% to 24,572, and the S&P BSE Sensex fell 0.02% to 80,424.
Here’s how analysts view the market:
“On the daily charts, we can observe that the Nifty is consolidating around the 24620 – 24650 zone which coincides with the 61.82% Fibonacci retracement level and also the upper end of the gap area formed on August 5. We believe that the Nifty is in the process of filling the gap area. On the upside, 24650 – 24700 is the immediate hurdle zone while 24390 – 24350 is the immediate support zone. Overall, we expect a range-bound move in the Nifty from a short-term perspective,” Jatin Gedia of Sharekhan.
Tejas Shah of JM Financial & BlinkX said, “The technical structure of Nifty is relatively stronger than Bank Nifty. The Nifty index also closed above the crucial resistance zone of 24,350-400 for two consecutive days which is a positive sign. Support for the Nifty is now seen at 24,500 and 24,350-24,400 levels. On the upside, the immediate resistance for the Nifty is at 24,700 level and the next resistance is at 24,850 levels.
That said, let’s take a look at what some key indicators suggest for Tuesday’s action:
US Market:
US stocks were flat on Monday, with the S&P 500 up 0.2%, the Dow up 0.3% and the Nasdaq up 0.1%. Ulta Beauty gained 2.5% following the announcement of Berkshire Hathaway’s stake, while AMD rose 0.4% following its acquisition of ZT Systems. Trading was quiet, with Treasury yields steady ahead of Federal Reserve Chairman Jerome Powell’s upcoming speech in Jackson Hole, where rate cuts are expected next month.
Tech View: Small Red CandleNifty closed Monday’s session range-bound with a gain of 31.5 points to form a small red candle on the daily chart that indicated doubts after Friday’s bullish breakout.
The short-term trend of Nifty remains positive. Having placed at the key level above The resistance is around 24,700. There is a possibility of further consolidation or minor decline in the next 1-2 sessions, before showing another round of bullish breakout. The immediate supports to watch are 24,400 levels, said Nagaraj Shetti of HDFC Securities.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence-Divergence (MACD) showed bullish trade on the counters of Info Edge, Ethos, Glenmark Pharma, Cholamandalam Financial Holdings and GRP Ltd among others.
The MACD is known for signaling trend changes in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the listed asset has increased. security You can see an upward movement and vice versa.
Actions that indicate weakness in the future:
The MACD showed bearish signals on the counters of Pfizer, AIA Engineering, Dhanuka Agritech, Bajaj Steel Industries, and NDR Auto Components, among others. The bearish crossover of the MACD on these counters indicated that they have just started their bearish journey.
Most active stocks in terms of value:
Triveni Engineering & Industries (Rs 2,164 crore), RIL (Rs 2,056 crore), HDFC Bank (Rs 1,587 crore), Hindustan Zinc (Rs 1,305 crore), CDSL (Rs 1,275 crore), Trent (Rs 1,220 crore) and Firstsource (Rs 1,204 crore), among others, were among the most active stocks on NSE in terms of value. Higher activity on a counter in terms of value can help identify the counters with higher trading volumes on the day.
Most active stocks in terms of volume:
Vodafone Idea (Actions The most traded stocks during the session on NSE were: Shares of YES Bank (shares traded: 13.1 crore), Suzlon Energy (shares traded: 9.6 crore), Zomato (shares traded: 8 crore), Tata Steel (shares traded: 6.2 crore), NBCC (shares traded: 5.6 crore) and Ujjivan Small Finance Bank (shares traded: 4 crore), among others.
Stocks showing buying interest:
Shares of Caplin Point, Godfrey Philips, Triveni Engineering, Firstsource, Jubilant Pharmova, Himadri Speciality and Voltas, among others, witnessed strong buying interest from market participants as they touched their fresh 52-week highs, indicating bullish sentiment.
Stocks see selling pressure:
No major stocks hit their 52-week lows on Monday.
Sentiment gauge favors bulls:
Overall, market breadth favored the bulls as 2,715 stocks ended in the green, while 1,325 names closed in the red.
(Disclaimer: The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of the Economic Times)
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