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HomeMarketStocksAhead of Market: 10 things that will decide stock action on Tuesday

Ahead of Market: 10 things that will decide stock action on Tuesday

NEW DELHI: Amid positive cues from European and US markets and despite the sell-off in the Hong Kong and China markets, the domestic equity market on Monday ended the Diwali Muhurat trading session on a high note with Sensex and Nifty ending 0.88% higher.

That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:

US market

US stocks shifted between gains and losses in morning trading on Wall Street Monday ahead of a heavy week of earnings from big tech companies. The S&P 500 gave up an early gain and was down 0.2% as of 10:26 a.m. Eastern. The Dow Jones Industrial Average rose 233 points, or 0.8%, to 31,320 and the Nasdaq fell 0.9%.

The yield on the 10-year Treasury, which impacts mortgage rates, rose to 4.28% from 4.22% late Friday.

European shares

Former British finance minister Rishi Sunak will be Britain’s next prime minister after his rivals quit the race, which analysts said had relieved some of the nervousness around the outlook for the UK economy, boosting domestic markets. FTSE 100 rises 0.6% on the day, supported by consumer sectors and industrials, but is underperforming the broader European markets, where the STOXX 600 is up 1.2%.

Sterling fell 0.1% against the dollar to $1.1291, having ricocheted between the day’s high of $1.1402 and the low of $1.1275 in volatile trading.

Ten-year gilt yields were down 28 basis points at 3.78%, having hit their lowest since former finance minister Kwasi Kwarteng’s “mini budget” on September 23.

Tech View: Nifty trading above 8 out of 8 SMAs

Nifty ended above 8 out of 8 SMAs and was trading above 5 out of 9 oscillators. The day MACD signal was above its center and signal line, which is a bullish indicator.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of

, Bharti Airtek, BPCL, Max India, IGL and Biocon.

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 Mazagon Dock, GRSE,

, , RITES and Borosil 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

(Rs 406 crore), RIL (Rs 386 crore), Axis Bank (Rs 281 crore),SBI (Rs 210 crore), HUL (Rs 186 crore), and (Rs 165 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 highest trading turnovers in the day.

Most active stocks in volume terms

(Shares traded: 7.4 crore), ICICI Bank (Shares traded: 4.3 crore), SBI (Shares traded: 3.6 crore), ITC (Shares traded: 3.2 crore), Axis Bank (Shares traded: 3 crore) and (Shares traded: 2.8 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest

Shares of NHPC,

, , IDFC, , and witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure

Shares of

, and were among those that witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bulls

Overall, market breadth favoured winners as 2,662 stocks ended in the green, while 744 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)

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