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    Ahead of Market: 12 things that will decide stock action on Wednesday

    Synopsis

    A look at what some of the key indicators are suggesting for Wednesday’s market action.

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    Chandan Taparia of Motilal Oswal Financial Services said the major market trend remains positive, as declines are being bought into on many of the heavyweight counters.
    NEW DELHI: As Nifty ended with gains for the fifth session in a row on Tuesday, it formed a Pin Bar or Hanging Man candle pattern on the daily chart.

    Chandan Taparia of Motilal Oswal Financial Services said the major market trend remains positive, as declines are being bought into on many of the heavyweight counters.

    "Now, the index has to hold above 10,650 level to extend its move towards 11,000 level, while on the downside, supports shifted higher to 10,550 and 10,450 levels," he said.

    Deepak Jasani of HDFC Securities said technically, as Nifty move further up, it could rise towards 10,887 level, which corresponds to the 200-day SMA. Also, weakness could emerge if the support of 10,690 is broken.

    Sumeet Bagadia of Choice broking said Nifty has been trading above its 50-day moving average with an upward rising channel formation, which suggests further upside.

    “Based on the above technical structure, we expect Nifty resistance at 10,850-10,900, while downside support should come in at 10,570,” he said.

    That said, here’s a look at what some of the key indicators are suggesting for Wednesday’s market action:

    US shares dip after five-day run
    Wall Street's major indexes slipped on Tuesday following the benchmark S&P 500's longest streak of gains this year as investors worried about the tens of thousands of new coronavirus cases nationwide. At 7:30 pm (IST), the Dow Jones Industrial Average was down 208.12 points, or 0.79 per cent, at 26,078.91, the S&P 500 was down 11.52 points, or 0.36 per cent, at 3,168.20, and the Nasdaq Composite was down 6.22 points, or 0.06 per cent, at 10,427.43.

    European shares ease from 1-month highs
    European shares fell on Tuesday as surging US coronavirus cases and forecasts for a deeper-than-feared recession in the euro zone dimmed optimism around a post-pandemic rebound. The pan-European STOXX 600 index slipped 1 per cent, falling back from a near one-month high. Banks, which had surged 4 per cent in the previous session tracking a global rally after China moved to prop up its market, fell 1.3 per cent. Travel and leisure, real estate, and technology shares dropped more than 1.5 per cent each.

    Tech View: Nifty in consolidation mode
    Nifty on Tuesday missed the 10,800 mark by a whisker. It was another day of range-bound trade and for yet another day, the index formed an indecisive candle on the daily chart, suggesting that it was in a consolidation mode.

    Check out the candlestick formations in the latest trading sessions
    1

    F&O: VIX falls for fifth session
    India VIX fell around 0.39 per cent to 25.10 level on Tuesday. A gradual decline in volatility, which has been falling from last three weeks and is at the lowest level in four months, suggests an overall bullish stance. Options data suggested an immediate trading range between 10,400 and 11,060 levels.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) on Tuesday showed bullish trade setup on the counters of Tata Motors, NBCC (India), Rashtriya Chemicals, MTNL, Rain Industries, HCL Technologies, Tin Plate, JK Tyre & Industries, SPIC, City Union Bank, Mangalore Chem, Century Textiles, Voltas Ltd. and Havells India, among others.

    Stocks signalling weakness ahead
    The MACD showed bearish signs on the counters of Bharti Airtel, Petronet LNG, HFCL, Indian Bank, Ambuja Cements, Engineers India, Future Retail, Bajaj Auto, Grasim Industries, Birla Soft, Eros International, Jagran Prakashan, Tata Elxsi, Future Lifestyle, ITD Cementation, Orient Electric, Ipca Laboratories, VRL Logistics, IFB Industries, Prince Pipes, Megasoft and Sundaram Fasteners, among others.

    Most active stocks in value terms
    Bajaj Finance (Rs 7461.70 crore) , RIL (Rs 2973.93 crore) , IndusInd Bank (Rs 2187.51 crore) , ICICI Bank (Rs 1707.23 crore) , Axis Bank (Rs 1664.72 crore) , Bandhan Bank Ltd. (Rs 1580.69 crore) , Infosys (Rs 1521.16 crore) , HDFC Bank (Rs 1340.98 crore) , Bajaj Finserv (Rs 1296.64 crore) and TCS (Rs 1274.50 crore) were among the most active stocks on Dalal Street in value terms.

    Most active stocks in volume terms

    Vodafone Idea (Shares traded: 24.02 crore) , BHEL (shares traded: 11.17 crore), Tata Motors (shares traded: 8.58 crore) , NBCC (shares traded: 7.50 crore) , Equitas Holdings (shares traded: 5.81 crore) , SAIL (shares traded: 5.74 crore) , SBI (shares traded: 5.51 crore) , RBL Bank (shares traded: 5.23 crore) , M&M Financial (shares traded: 4.99 crore) and IDFC First Bank Ltd. (shares traded: 4.75 crore) were among the most traded stocks in the session.

    Stocks seeing buying interest
    Escorts, Hindustan Aeronautics, Vaibhav Global, Tata Consumer Products and Navin Fluorine witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Tuesday signalling bullish sentiment.

    Stocks seeing selling pressure
    B.C. Power Controls, Touchwood Entertainment, Mittal Life Style and Omaxe witnessed strong selling pressure in Tuesday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.

    Sentiment meter favours bears
    The overall market breadth remained in favour of bears. As many as 231 stocks on the BSE 500 index settled the day in green, while 266 settled the day in red.

    Podcast: Is Nifty going against global trend? >>>
    Domestic equity indices extended their gains into the fifth straight session on Tuesday. Overall, Sensex closed 187 points higher at 36,675, while Nifty advanced 36 points to 10,800. Smallcaps and midcaps moved largely in line with the largecaps. Indian market closed higher despite weakness in US stock futures and Asian markets. What is this telling us about market behaviour?

    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

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    1 Comment on this Story

    bsrahmd 37 days ago
    it's a doji. dragonfly doji.
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