Waiting for the market: 10 factors that will decide the performance of stocks on Tuesday

National headline equity The Sensex and Nifty indices closed at fresh record highs for the third consecutive session on Monday as last week’s massive US rate cut boosted investors’ risk appetite.

The Nifty 50 index rose 0.57 per cent to 25,939, while the S&P BSE Sensex gained 0.45 per cent to 84,928, hitting record closing highs.

This is how analysts read the market pulse:

“On the daily charts, we can observe that the Nifty is steadily moving higher towards the upper end of the ascending channel in the 26000 – 26100 zone. The divergence in the momentum indicator on the daily and hourly time frames points to a cautious stance; however, until there is specific evidence of weakness on the price front, we will continue to ride the up move with a trailing stop loss mechanism that should be kept at 25,700,” said Jatin Gedia of Sharekhan.

LKP Securities’ Rupak De said, “The Nifty continues to rise and touches fresh daily highs. The sentiment remains positive, suggesting a possible surge towards 26,200 in the near term. On the downside, the Nifty may find support around the 21-EMA on the hourly time frame, which is currently located at 25,700. The RSI has given a break of the downtrend line on the daily time frame. The positive sentiment is likely to persist as long as the index remains above this critical moving average.”

That said, let’s take a look at what some key indicators suggest for Tuesday’s action:

US Market:

Wall Street’s major indexes rose slightly in volatile trading on Monday as investors assessed comments from Federal Reserve policymakers and factory activity data following the central session. bankThe decision to begin to relax monetary policyThe Federal Reserve’s major policy shift last week supported monthly gains in major indexes, bucking the historical trend of weak stock performance in September.

Eight of the 11 S&P 500 sectors closed higher, with energy stocks leading the way with a 1.4% gain, while health care stocks fell 0.3%. Among interest rate-sensitive growth stocks, Tesla rose 3.6%, Meta gained 1.2% and Apple fell 0.5%.

Tech Outlook: Bullish Candle

The Nifty formed a bullish candle on the daily chart as the market continued its bullish run on Monday.

A reasonable bullish candlestick has formed on the daily chart. The short-term trend of Nifty remains positive. Nifty is now heading towards the upside target of 26250 (1.618% Fibonacci extension) in the near term. The immediate support is at 25750, said Nagaraj Shetti of HDFC Securities.

In it open interest (OI) data, the highest OI on the buy side was seen at strike prices of 26,000 and 25,900, while on the sell side, the highest OI was at strike price of 25,800, followed by 25,900.

Stocks showing bullish bias:

Momentum Indicator Moving Average Convergence Divergence (MACD) was optimistic trade at the counters of Inox Wind Energy, E2E Networks, Apollo Hospitals Enterprise, Solar Industries, Amber Enterprises, Bajaj Finserv, V-Mart Retail, HUL and Angel One, 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 Apar Industries, LTIMindtree, Lakshmi Machine Works, Glenmark Life Sciences, Crisil, Shilpa Medicare, Anand Rathi Wealth, and Paytm, among others. The bearish crossover of the MACD on these counters indicated that they have just started their downward journey.

Most active stocks in terms of value:

HDFC Bank (Rs 2,368 crore), BSE (Rs 2,109 crore), Kalyan Jewellers (Rs 1,916 crore), Vodafone Idea (Rs 1,877 crore), ICICI Bank (Rs 1,502 crore), Amber Enterprises (Rs 1,470 crore) and Zomato (Rs 1,437 crore), among others, were among the most active stocks on NSE in terms of value. Higher activity in a market in terms of value can help identify markets with higher trading volumes on the day.

Most active stocks in terms of volume:

Vodafone Idea (shares traded: Rs 168.2 crore), SBFC Finance (shares traded: Rs 12.1 crore), SI Bank (Shares traded: Rs 7.5 crore), High Frequency Liquid (HFCL) (Shares traded: 7.4 crore), Zomato (Shares traded: 4.8 crore), GMR Infra (Shares traded: 4.5 crore) and Bank of Maharashtra (Shares traded: 4.4 crore), among others, were among the most traded stocks in the session on NSE.

Stocks showing buying interest:

Shares of SBFC Finance, Amber Enterprises, Asahi India Glass, Kalyan Jewellers, Aditya Birla Retail, Mankind Pharma and Blue Star, among others, witnessed strong buying interest from market participants as they hit their fresh 52-week highs, indicating bullish sentiment.

Stocks see selling pressure:

Shares of Gujarat Ambuja Exports hit 52-week lows, indicating bearish sentiment in the market.

Bullish sentiment gauge:

Overall, market breadth favored the bulls as 2,318 stocks ended in the green, while 1,793 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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