NEW DELHI: After crossing the 16,000 mark, Nifty ended Tuesday’s session 24.5 points lower at 15,810. Sensex fell 100 points to end the day at 53,134. Metal and pharma indices were the only two sectoral gainers.
Here’s how analysts read the market pulse:
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the short-term trend of the Nifty seems to have reversed down from the highs and the current chart pattern indicates the possibility of further weakness in the short term. One may expect Nifty to slide down to 15,600-15,500 levels again in the near term, he said.
Ajit Mishra, VP – Research, Religare Broking, said on the index front, the Nifty should hold decisively above 15,900 to inch towards 16,200, while a decline below 15,600 would again put the bears back in the game.
That said, here’s a look at what some key indicators are suggesting for Wednesday’s action:
Wall Street falls as recession fears mount
Wall Street’s main indexes fell on Tuesday, with investors fretting about the possibility of a recession as central banks across the world take aggressive actions to stem a surge in inflation.
U.S. stocks have been under relentless selling pressure this year, with the benchmark S&P 500 index recording its steepest first-half percentage drop since 1970, as the Federal Reserve moves away from easy-money policy by raising borrowing costs.
At 09:45 a.m. ET, the Dow Jones Industrial Average was down 604.88 points, or 1.95%, at 30,492.38, the S&P 500 was down 75.15 points, or 1.96%, at 3,750.18 and the Nasdaq Composite was down 201.56 points, or 1.81%, at 10,926.29.
European markets close 2% lower
European stocks closed sharply lower on Tuesday, as global markets failed to cement gains after a bruising week for stocks last week. The pan-European STOXX 600 index lost 1.94% and MSCI’s gauge of stocks across the globe shed 1.83% but was still managing to stay above its June 17 trough, which had been its lowest level since November 2020.
Tech View: Bearish candle on daily chart
Nifty50 formed a bearish candle on the daily chart, with a long upper wick, reflecting weakness at high. Analysts said the ongoing consolidation for the index may continue, with levels of 15,650-750 likely to offer some support to the index.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of
, , , Saregama, and .
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 signalling weakness ahead
The MACD showed bearish signs on the counters of Tata Consumer,
, NHPC, Divis Lab and . A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
RIL (Rs 1,987 crore), Infosys (Rs 1,103 crore),
(Rs 979 crore), (Rs 832 crore), Hindalco (Rs 733 crore), and HDFC (Rs 732 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
ONGC (Shares traded: 4.5 crore), Hindalco (Shares traded: 2.1 crore), ITC (Shares traded: 1.9 crore),
(Shares traded: 1.7 crore), (Shares traded: 1.5 crore) and SBI (Shares traded: 1.2 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of Siemens and
witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
, , and Wockhardt witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.
Sentiment meter favours bulls
Overall, market breadth favoured losers as 1,664 stocks ended in the green, while 1,637 names settled with cuts.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)