Chandan Taparia, Technical & Derivative Analyst at MOFSL said, “Now, the Nifty has to hold above 14,750 level to witness a bounce towards 14,900 and 15,000 levels, while on the downside, immediate support exists at 14,700 and then at 14,600 levels.”
Ajit Mishra, VP – Research at Religare Broking said, “we feel banking might help the index to inch further higher, but negative sentiment due to the rise in the Covid cases and mixed global cues would cap the upside. We reiterate our cautious approach and suggest preferring hedged positions.”
That said, here’s a look at what some of the key indicators are suggesting for Wednesday’s action:
US stocks subdued ahead of Powell, Yellen testimonies
Wall Street was muted on Tuesday as energy stocks slipped, while investors marked time ahead of remarks from Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen for clues about their tolerance for higher bond yields. The Dow Jones Industrial Average was up 2.53 points, or 0.01%, at 32,733.73, the S&P 500 was up 3.22 points, or 0.08%, at 3,943.81, and the Nasdaq Composite was up 4.62 points, or 0.03%, at 13,382.16.
New virus wave drags European shares lower
European stocks eased from a one-year peak on Tuesday, as a new wave of coronavirus infection and fresh lockdown in Germany raised fears of a slow economic recovery from the pandemic shock. The pan-European STOXX 600 index fell 0.04% after a new round of sanctions aimed at China hit Asian markets.
Tech View: Nifty50 tops 14,800 level
Nifty50 on Tuesday rose half-a-per cent and closed above the 14,800 mark after four sessions. The index formed a small bullish candle on the daily chart and made higher lows for the second session, suggesting that support has shifted higher. The index may see support at 14,700 level and could face resistance near the 15,000 level, analysts said. Gaurav Ratnaparkhi of Sharekhan said the index recently took support near the lower end of a sideways channel.
Check out the candlestick formations in the latest trading sessions
F&O: Nifty needs to cool down below 20 level
India VIX rose 0.85 per cent from 20.49 to 20.66 levels. It needs to cool down below 20 level for the bullish grip to strengthen and the market move to smoothen. There was Call writing at 14,900 and then 14,800 levels while Put writing was seen at 14,800 and then 14,700 levels. Options data suggested a wider trading range between 14,500 and 15,000 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Tuesday showed bullish trade setup on the counters of Tata Motors, IDBI Bank, Adani Enterprises, Bharti Airtel, Ambuja Cements, Reliance Industries, Indraprastha Gas, InterGlobe Aviation, ACC, Aurobindo Pharma, Laurus Labs, Marico, Divi’s Lab, Dr. Reddy’s Labs, Zydus Wellness and AstraZeneca Pharma India.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Delta Corp, Dhani Services, BEML, The New India Assurance, General Insurance Corporation, Welspun Enterprises, Birla Cable, India Tourism Development Corporation, MBL Infrastructures, Akzo Nobel India, Salzer Electronics and Blue Dart Express.
Tuesday’s most active stocks
Adani Enterprises (Rs 3289.29 crore), Adani Ports SEZ (Rs 2275.46 crore), Tata Motors (Rs 1859.02 crore), ICICI Bank (Rs 1712.36 crore), RIL (Rs 1677.61 crore), SBI (Rs 1526.69 crore), HDFC Bank (Rs 1469.33 crore), Axis Bank (Rs 1157.95 crore), TCS (Rs 1040.83 crore) and HDFC (Rs 1000.34 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: 11.99 crore), PNB (Shares traded: 10.81 crore), Bank of Baroda (Shares traded: 6.66 crore), YES Bank (Shares traded: 6.11 crore), Tata Motors (Shares traded: 6.02 crore), BHEL (Shares traded: 4.26 crore), Tata Power (Shares traded: 4.19 crore), ITC (Shares traded: 4.16 crore), SBI (Shares traded: 4.10 crore) and IDBI Bank (Shares traded: 4.07 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Alkyl Amines, Adani Gas, Adani Transmission, Adani Enterprises and Orchid Pharma witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Tuesday signalling bullish sentiment.
Stocks seeing selling pressure
Mittal LifeStyle, Generic Engineering Construction, Global Education, Jump Networks, Ravinder Heights and Sanwaria Consumer witnessed strong selling pressure in Tuesday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls
Overall, market breadth remained in favour of bulls. As many as 290 stocks on the BSE 500 index settled the day in green, while 207 settled the day in red.
Podcast: How to play the banking pack after SC verdict on loan moratorium >>>
Banks cheered the Supreme Court verdict on extension of moratorium and interest waiver, pushing Sensex past the 50,000 mark. The 30-pack index hit this psychologically-important mark after four sessions. Nifty also rose half a per cent and topped 14,800 level. We spoke to Ajit Mishra of Religare Securities to share his views on the market.