Indian equity indices reversed losses to end higher on Tuesday as investors sought safety in heavyweight financials that are considered to have cheaper valuations, ahead of the tightly-fought U.S. presidential election.
The NSE Nifty 50 rose 0.91% to 24,213, while BSE Sensex gained 0.88% to 79,476. The benchmarks fell about 0.6% each during the session, before reversing course in the final two hours.
Here's how analysts read the market pulse:
"Nifty has found support around a historical swing low for the second consecutive day. On the technical front, a Piercing Line candlestick pattern has appeared on the daily chart, suggesting a potential bullish reversal. Additionally, a positive divergence on the daily RSI further strengthens the case for an upward move. Looking ahead, a buy-on-dips strategy could benefit traders as long as Nifty stays above 24,000. On the higher side, Nifty may advance toward the 24,750-24,800 range. However, the buy-on-dips strategy has to be reviewed once Nifty falls back below 24000," said Rupak De of LKP Securities.
Jatin Gedia of Sharekhan, said, "A reach above the 24368 would confirm that the trend has reversed. The daily momentum indicator has a positive crossover which is a buy signal. Thus, there are signs of a near term reversal note however it shall be confirmed only above 24368."
That said, here’s a look at what some key indicators are suggesting for Wednesday's action:
US market:
U.S. stock indexes climbed on Tuesday as voters cast their ballots on the final day of the presidential election, while economic data continued to show strength.
Treasury yields also surged after a report showed stronger-than-expected growth in U.S. services industries, including retail and transportation. Despite predictions of a slowdown, the Institute for Supply Management reported the fastest growth since the summer of 2022.
Global markets
MSCI's global stock index rose 0.65%, while the 10-year Treasury yield climbed over 5 basis points to 4.3636%, nearing last week's four-month high as inflation concerns resurfaced. Yields rose despite expectations of a 25 basis point rate cut by the Federal Reserve.
Europe's STOXX index remained flat, and MSCI's index of Asia-Pacific shares (excluding Japan) gained 0.9%.
Currency markets saw more volatility, with mixed signals about investor preferences for the presidential candidates. The dollar eased slightly, trading at 151.98 yen and $1.0905 per euro as traders adjusted positions.
Tech View:
Nifty ended Tuesday's session 218 points higher to form a Piercing Line candle on the daily chart around its 150-day exponential moving average (DEMA) support to indicate strength.
The underlying short-term trend of Nifty is on the verge of reversal. A decisive move above 24500 levels could open fresh upmove in the market. Any weakness from here is expected to drag Nifty down to 23900-800 levels again, said Nagaraj Shetti of HDFC Securities.
In the derivatives market, open interest (OI) data showed the highest OI on the call side at the 24,500 and 25,000 strike prices, while the put side registered peak OI at the 25,000 level.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Neuland Laboratories, Shilchar Technologies, Bajaj Steel, BASF India, Zen Technologies, and Mankind Pharma 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 Amber Enterprises, Coforge, Bombay Burmah, and Wipro 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:
HDFC Bank (Rs 3,840 crore), SBI (Rs 2,207 crore), RIL (Rs 2,111 crore), ICICI Bank (Rs 2,110 crore), Mazagon Dock Shipbuilders (Rs 1,909 crore), ABB India (Rs 1,547 crore), and Axis Bank (Rs 1,351 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: 55.5 crore), PNB (Shares traded: 7.9 crore), YES Bank (Shares traded: 5.6 crore), Suzlon Energy (Shares traded: 4.5 crore), JP Power (Shares traded: 4.4 crore), Tata Steel (Shares traded: 4.2 crore), and NHPC (Shares traded: 4.2 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Rainbow ABSL AMC, Deepak Fertilisers, Nalco, Suven Pharma, and Gillette India among others witnessed strong buying interest as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
Shares of Delhivery hit their 52-week lows, signaling bearish sentiment on the counter.
Sentiment meter bulls:
Overall, market breadth favoured bulls as 2,468 stocks ended in the green, while 1,478 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 the Economic Times)
The NSE Nifty 50 rose 0.91% to 24,213, while BSE Sensex gained 0.88% to 79,476. The benchmarks fell about 0.6% each during the session, before reversing course in the final two hours.
Here's how analysts read the market pulse:
"Nifty has found support around a historical swing low for the second consecutive day. On the technical front, a Piercing Line candlestick pattern has appeared on the daily chart, suggesting a potential bullish reversal. Additionally, a positive divergence on the daily RSI further strengthens the case for an upward move. Looking ahead, a buy-on-dips strategy could benefit traders as long as Nifty stays above 24,000. On the higher side, Nifty may advance toward the 24,750-24,800 range. However, the buy-on-dips strategy has to be reviewed once Nifty falls back below 24000," said Rupak De of LKP Securities.
Jatin Gedia of Sharekhan, said, "A reach above the 24368 would confirm that the trend has reversed. The daily momentum indicator has a positive crossover which is a buy signal. Thus, there are signs of a near term reversal note however it shall be confirmed only above 24368."
That said, here’s a look at what some key indicators are suggesting for Wednesday's action:
US market:
U.S. stock indexes climbed on Tuesday as voters cast their ballots on the final day of the presidential election, while economic data continued to show strength.
Treasury yields also surged after a report showed stronger-than-expected growth in U.S. services industries, including retail and transportation. Despite predictions of a slowdown, the Institute for Supply Management reported the fastest growth since the summer of 2022.
Global markets
MSCI's global stock index rose 0.65%, while the 10-year Treasury yield climbed over 5 basis points to 4.3636%, nearing last week's four-month high as inflation concerns resurfaced. Yields rose despite expectations of a 25 basis point rate cut by the Federal Reserve.
Europe's STOXX index remained flat, and MSCI's index of Asia-Pacific shares (excluding Japan) gained 0.9%.
Currency markets saw more volatility, with mixed signals about investor preferences for the presidential candidates. The dollar eased slightly, trading at 151.98 yen and $1.0905 per euro as traders adjusted positions.
Tech View:
Nifty ended Tuesday's session 218 points higher to form a Piercing Line candle on the daily chart around its 150-day exponential moving average (DEMA) support to indicate strength.
The underlying short-term trend of Nifty is on the verge of reversal. A decisive move above 24500 levels could open fresh upmove in the market. Any weakness from here is expected to drag Nifty down to 23900-800 levels again, said Nagaraj Shetti of HDFC Securities.
In the derivatives market, open interest (OI) data showed the highest OI on the call side at the 24,500 and 25,000 strike prices, while the put side registered peak OI at the 25,000 level.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Neuland Laboratories, Shilchar Technologies, Bajaj Steel, BASF India, Zen Technologies, and Mankind Pharma 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 Amber Enterprises, Coforge, Bombay Burmah, and Wipro 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:
HDFC Bank (Rs 3,840 crore), SBI (Rs 2,207 crore), RIL (Rs 2,111 crore), ICICI Bank (Rs 2,110 crore), Mazagon Dock Shipbuilders (Rs 1,909 crore), ABB India (Rs 1,547 crore), and Axis Bank (Rs 1,351 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: 55.5 crore), PNB (Shares traded: 7.9 crore), YES Bank (Shares traded: 5.6 crore), Suzlon Energy (Shares traded: 4.5 crore), JP Power (Shares traded: 4.4 crore), Tata Steel (Shares traded: 4.2 crore), and NHPC (Shares traded: 4.2 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Rainbow ABSL AMC, Deepak Fertilisers, Nalco, Suven Pharma, and Gillette India among others witnessed strong buying interest as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
Shares of Delhivery hit their 52-week lows, signaling bearish sentiment on the counter.
Sentiment meter bulls:
Overall, market breadth favoured bulls as 2,468 stocks ended in the green, while 1,478 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 the Economic Times)
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