NEW DELHI: As Nifty ended the Tuesday’s volatile trading session on a flat note, it formed a bearish candle on the daily chart.
Ajit Mishra of Religare Broking said, going ahead, the upcoming auto sales numbers will be closely watched by the participants.
“Meanwhile, global cues will continue to dictate the trend. Traders should limit their leveraged positions and maintain positions on both sides,” he said.
Nagaraj Shetti of HDFC Securities said the short-term trend of Nifty is positive with rangebound movement.
“Further consolidation or narrow range movement is likely in the next 1-2 sessions with volatile intraday swings. Immediate support is placed at 11,180 and a sustainable move above 11,250 levels could pull Nifty towards the next 11,300-11,400 range for the near term,” he said.
Mazhar Mohammad of Chartviewindia.in said for the time being positional traders are advised to refrain from creating long positions on dip whereas intraday traders can short below 11180 for a modest target of 11100 levels with intraday high as stop loss level.
That said here’s a look at what some of the key indicators are suggesting for Wednesday’s action:
US stocks treads water ahead of first presidential debate
Wall Street’s main indexes steadied on Tuesday after substantial gains a day earlier, with a positive reading on consumer confidence soothing nerves about the economy as attention turned to the first U.S. presidential debate. The Dow Jones Industrial Average was up 5.12 points, or 0.02%, at 27,589.18, and the S&P 500 was up 4.51 points, or 0.13%, at 3,356.11. The Nasdaq Composite was up 11.84 points, or 0.11%, at 11,129.36.
European shares slip ahead of Trump-Biden debate
European stock markets slipped on Tuesday as a rebound in the previous session fizzled out, with investors remaining cautious ahead of the first U.S. presidential debate. The pan-European STOXX 600 was down 0.5% after recording its biggest single-day gain in three months on Monday.
Tech View: Nifty needs to move above 11,300 to resume rally
After two days of sharp rally, Nifty50 on Tuesday took a breather and ended almost flat. During the session, the 50-pack saw selling pressure at 11,300 level, a crucial short-term resistance. The NSE barometer ended up forming a bearish candle on the daily chart, but extended the formation of higher highs and lows into the third straight session. A move above 11,300 is key for the index to resume the uptrend, analysts said. A failure to break above the 11,300 level can trigger profit booking and drag Nifty50 lower towards 11,180 and 11,100 levels, being the 23.6 per cent and 38.2 per cent Fibonacci retracement levels respectively, said Aditya Agarwala of YES Securities.
Check out the candlestick formations in the latest trading sessions
ETMarkets.comF&O: Cooling VIX only solace
India VIX moved up 1.05 per cent from 19.57 to 19.77 levels, while the overall lower volatility gave some comfort for a possible bounceback move. Options data suggested a wider trading range between 10,700 and 11,500 levels while the immediate trading range was between 11,000 to 11,400 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Tuesday showed bullish trade setup on the counters of Himadri Speciality, Manappuram Finance, Biocon, Apollo Tyres, Arvind, Exide Industries, Tata Chemicals, Muthoot Finance, Phillips Carbon, Hero MotoCorp, Meghmani Organics, TVS Motor, Welspun India, Bata India, Shalby, Eicher Motors, ACC, Praj Industries, Info Edge (India), UltraTech Cement, Gujarat Gas, Ceat, Britannia Industries, Tin Plate, Sagardeep Alloys, Nahar Poly Films, Vardhman Polytex, Worth Peripherals, Welspun Investments, Lyka Labs, NBI Industrial, GRP and Zodiac JRD MKJ among others.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Berger Paints, L&T Technology Services, MSTC, Mastek, Panacea Biotec, Manaksia Steels, Hercules Hoists, Oriental Aromatics, Elgi Rubber, Bhagyanagar India, Hester Biosciences, Asian Hotels (West) and Aarvi Encon among others.
Tuesday’s most active stocks
RIL (Rs 2673.91 crore), TCS (Rs 1741.23 crore), Bajaj Finance (Rs 1531.83 crore), IndusInd Bank (Rs 1147.18 crore), Hero MotoCorp (Rs 1081.08 crore), ZEEL (Rs 943.88 crore), Infosys (Rs 885.27 crore), HCL Tech (Rs 871.15 crore), Axis Bank (Rs 860.80 crore) and Tata Motors (Rs 840.45 crore) were among the most active stocks on Dalal Street on Tuesday in value terms.
Tuesday’s most active stocks in volume terms
Vodafone Idea (shares traded: 46.02 crore), YES Bank (shares traded: 6.51 crore), Tata Motors (shares traded: 6.34 crore), Ashok Leyland (shares traded: 5.94 crore), BHEL (shares traded: 5.76 crore), ZEEL (shares traded: 4.50 crore), Hindalco Industries (shares traded: 3.66 crore), SAIL (shares traded: 3.63 crore), SBI (shares traded: 3.57 crore) and Bank of Baroda (shares traded: 3.14 crore) were among the most traded stocks in the session.
Stocks seeing buying interest
Adani Green Energy, Ruchi Soya Industries, Persistent Systems, APL Apollo Tube and Mindtree witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Tuesday signalling bullish sentiment.
Stocks seeing selling pressure
Laurus Labs, Mittal LifeStyle, S&S Power Switchgears, Shree Ram Proteins and Tirupati Forge witnessed strong selling pressure in Tuesday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bears
Overall, market breadth remained in favour of bears. As many as 188 stocks on the BSE 500 index settled the day in green, while 309 settled the day in red.
Podcast: How volatile can market be before the US election? >>>
Benchmark equity indices ended marginally lower on Tuesday amid lack of directional cues from domestic as well as global markets. Energy-to-telecom behemoth Reliance Industries, IT major TCS and NBFC player HDFC notched up some gains, but ICICI Bank, ITC, Axis Bank and HUL bled and dragged the index marginally down. Overall, Sensex closed 8 points down at 37,973, while Nifty settled 5 points lower at 11,222. We caught up with Ajit Mishra of Religare Broking to try and understand the market undercurrent.