Ahead of Market: 10 things that will decide D-Street action on Tuesday

Estimated read time 16 min read
Indian equity indices clocked record highs in the first session of fiscal year 2025, led by a surge in metal companies after upbeat data from top consumer China. The blue-chip NSE Nifty 50 index was up 0.61% at 22,462, while the BSE Sensex added 0.49% to 74,014, at the close.

Both the Nifty 50 and Sensex rose as much as 0.91% and 0.82%, respectively, to record highs intra-day and the first time since March 11 and March 7, respectively.

Here’s how analysts read the market pulse:

“Nifty opened at gap-up and traded with a narrow range thereafter. It registered a new all-time high of 22,529.95. Nifty has been witnessing a sharp up-move for the past couple of trading sessions and we expect the momentum to continue. The hourly momentum indicator has triggered a negative crossover, which can lead to consolidation and a dip towards 22,400 – 22,350 is possible. However, it should be used as a buying opportunity as the overall trend appears positive. If Nifty manages to sustain above 22,500 then there shall be a further upside till 22,670 – 22,740,” said Jatin Gedia of Sharekhan.

Kunal Shah of LKP Securities said, “Nifty encountered a sideways trading session following a robust start, encountering resistance at 22,500, coinciding with the highest open interest on the call side. To maintain the upward momentum, the index must decisively breach the 22,500 mark, paving the way for further gains towards 22,700/22,800 levels. On the downside, support is situated at 22,350, and as long as the index holds above this level, the overall outlook remains optimistic.”

That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:

US market

The tech-heavy Nasdaq outpaced Wall Street peers on Monday as megacap growth stocks gained on hopes of an early rate cut by the U.S. Federal Reserve after the latest batch of data showed signs of softening inflation.The Commerce Department’s data on Friday showed the personal consumption expenditures (PCE) price index – the Fed’s preferred inflation gauge – rose 0.3% in February, compared with the estimates of a 0.4% increase, according to economists polled by StuffsEarth.

At 10:02 a.m. ET, the Dow Jones Industrial Average was down 152.37 points, or 0.38%, at 39,655.00, the S&P 500 was up 5.74 points, or 0.11%, at 5,260.09, and the Nasdaq Composite was up 94.21 points, or 0.58%, at 16,473.67.

European shares

European markets were closed on Monday on account of Easter holiday.

Tech View: Doji candle

Nifty on Monday ended 135 points higher to form a Doji candle on the daily chart with the index trying to break above the crucial overhead resistance of 22,500-22,550 levels.

Though Nifty is now placed at the crucial hurdle of around 22,500 levels, the overall chart pattern remains positive and we are unlikely to see any sharp decline from here. Any consolidation or dip could be a buying opportunity, said Nagaraj Shetti of HDFC Securities.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Jindal Saw, JM Financial, Indiabulls Housing Finance, Epigral, NALCO, and Bank of Maharashtra among others.

The MACD is known for signalling 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 Team Lease Service, Whirlpool India, Delhivery, and SBI Card among others. A bearish crossover on the MACD on these counters indicates that they have just begun their downward journey.

Most active stocks in value terms

HDFC Bank (Rs 1,848 crore), Tata Steel (Rs 1,365 crore), ICICI Bank (Rs 1,191 crore), Infosys (Rs 990 crore), Tata Motors (Rs 862 crore), Bajaj Finance (Rs 819 crore), and SBI (Rs 753 crore) 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 the highest trading turnovers in the day.

Most active stocks in volume terms

Tata Steel (Shares traded: 8.4 crore), HDFC Bank (Shares traded: 1.2 crore), ICICI Bank (Shares traded: 1 crore), SBI (Shares traded: 93 lakh), ITC (Shares traded: 93 lakh), Power Grid (Shares traded: 89 lakh ), and Tata Motors (Shares traded: 86 lakh) were among the most traded stocks in the session on NSE.

Stocks showing buying interest

Shares of Tata Steel, Adani Ports, L&T, and Grasim Industries among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure

No major stock hit 52-week lows on Monday.

Sentiment meter favours bulls

Overall, market breadth favoured bulls as 3,212 stocks ended in the green, while 698 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 Economic Times)

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