Indian equities traded in two special sessions from 9:15 a.m. to 10 a.m. (0345-0430 GMT) from a primary site, and then from 11:30 a.m. to 12:30 p.m. (0600-0700 GMT) from a so-called disaster recovery site as exchanges tested how their systems would respond in the case of unexpected events.
The benchmark NSE Nifty 50 settled 0.16% higher at 22,502, while the S&P BSE Sensex added 0.12% to 74,005.94. Both the benchmarks traded in a narrow range.
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Here’s how analysts read the market pulse:
“Heavy writing was visible in both call and put at 22,500 strike, indicating a sense of inflection. Therefore, traders need to be watchful in the initial hour to confirm any directional move. Support is visible at 22,400. On the higher end, a sustained move can take the index towards 22,600 and higher in the short term,” said Rupak De of LKP Securities.
Pravesh Gour of Swastika Investmart, said, “This positive momentum could push the index towards 22,525 and even 22,750 levels. On the downside, 22,300 will act as the immediate support level, followed by a 100-DMA of 22,050. It’s important to note that the market may experience volatility in both directions.That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:
US market
The main U.S. stock indexes were almost flat at open on Monday, as investors awaited quarterly results from Nvidia and the Federal Reserve’s policy meeting minutes due this week that will likely test Wall Street’s record-breaking run.
The Dow Jones Industrial Average fell 13.83 points, or 0.03%, at the open to 39,989.76. The S&P 500 opened higher by 2.08 points, or 0.04%, at 5,305.35, while the Nasdaq Composite gained 16.06 points, or 0.10%, to 16,702.02 at the opening bell.
European shares
European shares inched up on Monday but gains remained in check as a rise in commodity-linked stocks was offset by uncertainty around the outlook for interest rates.
The pan-European STOXX 600 index rose 0.1% to hover below record highs hit last week.
Tech View: Small bodied candle
Nifty ended Saturday’s small and special trading session 36 points higher to close above 22,500 for the first time in several days. However, a small bodied candle on the daily chart suggests very little about the future direction of the price, analysts say.
On the weekly chart, a Piercing Line-type pattern was seen, which hinted at more upside for the market ahead.
Larger range bound pattern of around 22800-21750 has come into play this week. Having moved up from near the lower range of 21750 levels in this week, Nifty is expected to move towards the upper range of 22800 levels in the next 1-2 weeks. Immediate support is placed at 22200 levels, said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of BEL, GRSE, Data Patterns (India), MTAR Technologies, Vedanta, and Laxmi Organics 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 GE Shipping, Capri Global, and Biocon 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
Tata Motors (Rs 183 crore), SBI (Rs 78 crore), HDFC Bank (Rs 77 crore), M&M (Rs 64 crore), Nestle India (Rs 63 crore), RIL (Rs 61 crore), and Tata Steel (Rs 60 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 highest trading turnovers in the day.
Most active stocks in volume terms
Tata Steel (Shares traded: 36 lakh), ONGC (Shares traded: 20 lakh), Tata Motors (Shares traded: 19 lakh), Power Grid (Shares traded: 15 lakh), NTPC (Shares traded: 10 lakh), Coal India (Shares traded: 9 lakh), and SBI (Shares traded: 9.6 lakh) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of Balkrishna Industries, Hindustan Zinc, Bharat Dynamics, Cadila Healthcare, Cochin Shipyard, HAL, and BEL 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 stocks hit their 52-week low on Saturday.
Sentiment meter favours bulls
Overall, market breadth favoured bulls as 2,415 stocks ended in the green, while 1,073 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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