The BSE Sensex advanced 320 points or 0.49% to settle at 65,828. The broader NSE Nifty surged 115 points or 0.59% to end at 19,638.
Here’s how analysts read the market pulse:
“On the daily charts, we can observe that Nifty has not witnessed follow-through selling pressure from the previous trading session. It managed to close above the 19600 zone which is a positive sign. On the hourly charts, we can observe an Impulse i.e. a five-wave advance which helps us to assume that the low of 19492 is a short-term bottom in place. In terms of levels, 19500 – 19480 is the crucial support zone while 19780 – 19840 shall act as an immediate hurdle zone,” Jatin Gedia, Sharekhan by BNP Paribas, said.
Rupak De, Senior Technical analyst at LKP Securities, said, “Nifty needs to close above 19,750 to witness a decent rally over the short term. A close or sustained move above 19,750 might take Nifty on a ride towards 20,500-20,700. On the flip side, a fall below 19,470 might trigger the resumption of the downtrend.”
That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:
US market close in green
US markets ended in the green on Friday after a softer-than-expected personal consumption expenditures (PCE) price index, considered to be Fed’s preferred inflation gauge, climbed 0.4% in August month-on-month, against estimates of a 0.5% rise. While Dow 30 gained by 116.07 points or 0.35% to 33,666.30, the S&P 500 closed at 4,299.70, up by 25.19 points or 0.59%. Meanwhile, the Nasdaq Composite settled 108.43 points or 0.83% higher at 13,201.30.European shares up inflation falls
European shares rose on Friday after a drop in euro zone inflation in September cemented hopes the European Central Bank will pause its interest rate hikes, but the benchmark index still logged its worst quarter in a year.
The pan-European STOXX 600 index was up 0.4% on Friday, but ended the quarter 2.5% lower. Inflation in the euro zone hit its lowest level in two years in September, suggesting the ECB’s steady diet of interest rate hikes was succeeding in curbing runaway prices, albeit at a growing cost for economic growth. London’s commodity-heavy FTSE 100 meanwhile climbed 0.1% and was up 1.0% this quarter, outpacing European peers.
Tech View: Small green candle
Nifty, which has been finding support near its 50-day EMA for the last three consecutive days, on Friday ended 115 points higher and formed a small green candle with a long upper shadow on the daily chart.
A sustainable move above 19770 levels could bring bulls back into action. A slide below 19500 is expected to resume sharp selling momentum, said Nagaraj Shetti of HDFC Securities.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Torrent Pharma, Suven Pharma, Eris Lifesciences, Oil India, Dixon Technologies, and Manappuram Finance 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 AU Small Finance Bank, and Triveni Engineering 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 2,451 crore), Reliance Industries (Rs 1,450 crore), ICICI Bank (Rs 995 crore), Axis Bank (Rs 985 crore), Infosys (Rs 870 crore), NTPC (Rs 864 crore), and L&T (Rs 818 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
NTPC (Shares traded: 3.5 crore), Tata Steel (Shares traded: 2.8 crore), Power Grid Corporation (Shares traded: 1.6 crore), HDFC Bank (Shares traded: 1.6 crore), SBI (Shares traded: 1.2 crore), Hindalco (Shares traded: 1.1 crore) and ICICI Bank (Shares traded: 1 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of NTPC, ONGC, Coal India, and L&T among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure
Shares of Navin Fluorine International, Adani Total Gas, and Delta Corp among others stocks that hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bears
Overall, market breadth favoured bulls as 2,302 stocks ended in the green, while 1,331 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 Economic Times)
