The benchmark Nifty 50 index ended 0.17% higher at 25,278 points and the BSE S&P Sensex rose 0.24% to settle at 82,559. Both hit all-time highs.
Here’s how analysts read the market pulse:
“The Nifty failed to surpass the opening high after a positive start. Heavy call writing was observed at the 25,300 strike, and overall, call writers significantly outnumbered put writers throughout the day. In the near term, the trend might remain sideways to negative as long as it stays below 25,300. On the lower end, however, the correction may be limited to 25,000, where significant put writing has been observed,” said Rupak De of LKP Securities.
Jatin Gedia, Technical Research Analyst at Sharekhan, said, “Sectoral rotation is helping Nifty to stay at elevated levels. We shall continue to ride the up move. On the upside, we expect Nifty to target levels of 25,500. On the downside, the crucial support base is placed at 25210 – 25120 where the key hourly moving averages are placed. We shall continue to ride the up move with a trailing stop loss mechanism.”
That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:US market:
The US markets were closed today on account of Labor Day.
Tech View: Small negative candle
Nifty ended Monday’s session with a gain of 43 points to form a small negative candle with minor lower shadow on the daily chart.The short-term trend of Nifty is intact. Though, Nifty is placed at the hurdles of around 25350 levels (1.382% Fibonacci extension), still there is no indication of any significant reversal pattern building at the highs. A decisive move only above 25400 could open the next upside target of 25800 levels. Immediate support is placed at 25100, Nagaraj Shetti of HDFC Securities said.
Open Interest (OI) data shows the highest OI on the call side at the 25,500 and 25,700 strike prices, and on the put side at the 25,000 strike price. This data, coupled with the overbought conditions, hints at a possible correction in the September series, analysts said.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Page Industries, Safari Industries, Sun Pharma, Britannia, Paytm, SRF, and Newgen Software Technologies 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 Sky Gold, Nile, Kfin Technologies, Fine Organics Industries, Affle, and Aurobindo Pharma 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:
Gujarat Gas (Rs 3,030 crore), HDFC Bank (Rs 2,778 crore), Jio Financial Services (Rs 2,207 crore), GSPL (Rs 2,173 crore), RIL (Rs 1,705 crore), Bajaj Finance (Rs 1,693 crore), and ICICI Bank (Rs 1,539 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:
Vodafone Idea (Shares traded: 68.6 crore), YES Bank (Shares traded: 14.2 crore), Suzlon Energy (Shares traded: 7.2 crore), Jio Financial Services (Shares traded: 6.5 crore), Zomato (Shares traded: 5.5 crore), NHPC (Shares traded: 5.2 crore), and GSPL (Shares traded: 4.8 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Gujarat Gas, Bajaj Holdings, Godrej Industries, Kalyan Jewellers, UTI AMC, GSPL, and Radico Khaitan 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 shares hit their 52-week low on Monday.
Sentiment meter favours bears:
Overall, market breadth favoured bears as 2,336 stocks ended in the red, while 1,705 names settled in the green.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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