Nifty inched higher to levels just below 19600, while Sensex added 232 points and closed at 65,953. Sectorally, healthcare and IT indices led the gains.
Here’s how analysts read the market pulse:
“The Indian market began the data-centric week with modest gains, primarily propelled by strong performances in the pharma and IT sectors. Global markets portrayed a mixed picture, with US futures exhibiting positivity in response to a moderation in bond yields, while European markets experienced declines due to weak economic data. Caution prevailed in the market due to the anticipation of upcoming inflation data and the RBI’s monetary policy,” said Vinod Nair, Head of Research at Geojit Financial services.
“Nifty demonstrated resilience as it predominantly remained strong, reclaiming its position above the 21-day Exponential Moving Average (21EMA) after a brief dip below this critical average. Going forward, the level of 19500 is expected to serve as immediate crucial support. The market’s upward momentum is likely to persist as long as the Nifty maintains its position above this support level. On the upper end, potential resistance can be anticipated around the range of 19700 to 19750,” Rupak De, Senior Technical Analyst at LKP Securities, said.
That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:
US market
Wall Street stocks rose early Monday after a gloomy end to the week on a mixed employment report, as traders geared up for closely watched inflation data.The Dow Jones Industrial Average advanced 0.8 percent to 35,331.36, while the broad-based S&P 500 climbed 0.6 percent to 4,504.30.The tech-heavy Nasdaq Composite Index also rose, by 0.3 percent to 13,955.78.
The movements came as the US economy added fewer jobs than expected in July, according to last Friday’s official employment data. European shares European stocks slipped on Monday as investors awaited key inflation figures from across the globe this week to gauge the outlook for interest rates, while shares of German group Siemens Energy reversed course after slumping earlier.
Siemens Energy gained 1.1% to 15.7 euros, after having fallen as much as 7%.
The German energy group said problems recently unveiled at its wind turbine unit would cost it 2.2 billion euros ($2.4 billion), well short of worst-case estimates but still casting doubt over the future of the business.
“Ugly and sizeable headline numbers are inevitable as part of this clearing process, it’s clearly a bad situation,” said Philip Buller, analyst at Berenberg.
“However, from a share price standpoint, we appear to have found a floor at around EUR 15.”
However, Germany’s DAX fell 0.3%, and the broader pan-European STOXX 600 edged down 0.2% ahead of inflation readings from Germany, China and the U.S. later this week, all likely to drive expectations on how long interest rates could remain high.
Tech View: Small positive candle
A small positive candle was formed with a gap-up opening and minor upper and lower shadows as per the daily timeframe chart. Technically, this pattern indicates the formation of a high wave or spinning top type candle pattern. Normally, such pattern formation after a reasonable decline or upmove signals an impending reversal post confirmation. Having shown a decent upside bounce from the lows in the last few sessions, the odds of reversal from the highs are likely.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Zee Media, JaiPrakash Associates, Tourism Finance, and Sequent Scientific 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 GAIL, NMDC, NHPC, and Engineers India 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
Zomato (Rs 2490 crore), SBI (Rs 1864 crore), HDFC Bank (Rs 2539 crore), and ICICI Bank (Rs 1629 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
IRFC (Shares traded: 30.68 crore), Zomato (Shares traded: 24.93 crore), Reliance Power (Shares traded: 21.59 crore), Suzlon Energy (Shares traded: 11.97 crore), and Vodafone Idea (Shares traded: 13.68 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of Poly Medicure, IRFC, HBL Power, Zen Tech, and Religare 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 Vedanta, Rajesh Exports, SITI Networks, and JBF Industries among other stocks that hit their 52-week lows, signaled bearish sentiment on the counters.
Sentiment meter favors bulls
Overall, market breadth favored bulls as 1,981 stocks ended in the green, while 1,721 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)
