The NSE Nifty 50 index The S&P BSE Sensex rose 0.02 per cent to 81,712 points.
This is how analysts read the market pulse:
“On the daily charts, we can observe that the Nifty is witnessing profit-taking at higher levels around the all-time high of 25,078. Negative divergence and crossover in the momentum indicator could be the reason for vulnerability at higher levels. On the downside, the crucial support lies at 24,960-24,855 zone. On the upside, the immediate hurdle lies at 25,200-25,250,” said Jatin Gedia, Technical Research Analyst at Sharekhan.
Rupak De of LKP Securities said, “Sentiment has entered an indecisive phase as Nifty closed with a Doji pattern on the daily chart. Significant presence of call and put options Put option Writers in the 25,000s Strike price “The technical level is strengthening. As a result, the Nifty is likely to remain range bound or witness a slight decline in the near term. On the lower end, 24,800 could act as an immediate support, while a rise above 25,100 could propel the Nifty towards 25,300.”
That said, let’s take a look at what some key indicators suggest for Wednesday’s action:
US Market:
Wall Street’s major indexes fell on Tuesday, weighed down by technology stocks as investors took a cautious stance ahead of Nvidia’s anticipated earnings report and key economic data later in the week. Nvidia, a leader in the recent bull market, saw its shares fall slightly ahead of reporting quarterly results expected to show revenue growth of more than 100%. Chip stocks also struggled, with Broadcom down 0.8% and Micron down 1.3%, leading the Philadelphia SE Semiconductor Index to drop 0.5%.
The Dow Jones Industrial Average fell 18.23 points, or 0.04%, to 41,222.29, the S&P 500 declined 4.72 points, or 0.08%, to 5,612.12 and the Nasdaq Composite fell 52.09 points, or 0.29%, to 17,673.67.
Technical view: Doji candle
Nifty formed a neutral Doji candle on the daily chart, reflecting an uncertain outlook in the near term.
To build momentum, fresh highs need to be set soon, which could open the door for further gains. Key levels to watch include 24975 and the bullish gap around 24850 as immediate support, with resistance at 25080-25100 and then 25400. Traders are advised to keep an eye on the above levels and trade accordingly, said Rajesh Bhosale of Angel One.
Open interest (OI) data showed that the highest OI on the buy side was seen at the strike prices of 25,300 and 25,500, while on the Put On the other hand, the highest OI was at the strike price of 24,800.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence-Divergence (MACD) showed bullish trade on the counters of Page Industries, Zen Technologies, Suven Pharma, Pearl Global Industries and HDFC Life Insurance 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 security’s price may experience an upward movement and vice versa.
Actions that indicate weakness in the future:
The MACD showed bearish signals on the counters of Ajanta Pharma, Symphony, Kfin Technologies, Suraj Estate Developers, Tips Industries, 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:
Tata Elxsi (Rs 4,681 crore), HDFC Bank (Rs 2,932 crore), Tata Technologies (Rs 2,520 crore), ICICI Bank (Rs 1,992 crore), Zee Entertainment Enterprises (Rs 1,513 crore), GSPL (Rs 1,427 crore) and CESC (Rs 1,425 crore), among others, were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify the counters with higher trading volumes on the day.
Most active stocks in terms of volume:
Vodafone Idea (shares traded: Rs 41.5 crore), Zee Entertainment Enterprises (shares traded: Rs 10.1 crore), Tata Teleservices (shares traded: Rs 7.2 crore), CESC (shares traded: Rs 7 crore), YES Bank (shares traded: Rs 6.5 crore), Alok Industries (shares traded: Rs 4.8 crore) and Castrol India (shares traded: Rs 3.6 crore), among others, were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Kfin Technologies, CESC, Caplin Point, Godrej Industries, Century Textiles, Castrol India and Jubilant Pharmova, 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 Tuesday.
Sentiment gauge favors bulls:
Overall, market breadth favored the bulls as 2,150 stocks ended in the green, while 1,812 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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