Ahead of Market: 10 things that will decide D-Street action on Wednesday

The buoyancy in the Indian stock market continued for the fourth straight day with Nifty ending close to 18,150 points. Broader markets too, performed in-line, with Nifty Midcap ending 0.87% higher.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, “The sharp upside momentum continued in the market for the second consecutive session on Tuesday and Nifty closed the day with handsome gains of around 133 points. After opening with an upside gap of 118 points, the market showed intraday consolidation in the early-mid part of the session. The buying has emerged from the intraday lows in the mid to later part of the session and the opening upside gap has been filled partially.”

Deepak Jasani, Retail Research-Head, HDFC Securities, said, “Nifty rose for the fourth consecutive session on November 1. Nifty opened gap up and remained in a 104 point band through the day. At close, Nifty was up 0.74% or 133.2 points at 18145.4. Among sectors, power, IT and healthcare indices rose the most while Bank index fell marginally. Midcap Index outperformed rising 1.04% while Smallcap index rose just 0.26%.”

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

US market

Wall Street‘s main indexes opened higher on Tuesday, with Nasdaq in the lead, as investors hoped the U.S. Federal Reserve may tone down its aggressive approach on interest rate hikes. The S&P 500 was last down 0.7% in choppy trading, with the index cutting early gains after economic data. The Dow Jones Industrial Average fell 225.75 points, or 0.69%, to 32,507.2, the S&P 500 lost 25.51 points, or 0.66%, to 3,846.47 and the Nasdaq Composite dropped 77.98 points, or 0.71%, to 10,910.17.

European shares

European shares opened higher on Tuesday, as blowout earnings from BP boosted oil stocks, while hopes that the US Federal Reserve would slow down the pace of its rate hikes next month also lifted the mood. The pan-European STOXX 600 index jumped 1.1% by 0808 GMT, after ending October at its highest in more than six weeks. Oil & gas stocks rose 1.5%, with BP up 0.1% as it reported a third-quarter profit of $8.15 billion, blowing past expectations, and announced another $2.5 billion in share repurchases.

Tech View: Doji sort of candle

Headline equity index Nifty formed a Doji sort of candle on the daily charts as it gave the highest closing of the last 195 trading sessions. “Now, it has to hold above 18,088 zones, for an up move towards 18,350 and 18,500 zones whereas supports are placed at 18,088 and 18,000 zones,” said Chandan Taparia of .

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trend in the counters of Subex,

, , and , 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 signalling weakness ahead

The MACD showed bearish signs on the counters of

, , LT Foods, DCW, and 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

Axis Bank (Rs 2,577.68 crore), RIL (Rs 1,639 crore),

(Rs 1,546 crore), and HDFC Bank(Rs 1,449 crore) were among the most active stocks on the 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

PNB (Shares traded: 14.61 crore),

(Shares traded: 13.34 crore), Yes Bank (Shares traded: 11.19 crore), (Shares traded: 6.90 crore) and Bhel (Shares traded: 6.17 crore) were among the most traded stocks in the session on the NSE.

Stocks showing buying interest

Shares of

, , NTPC, BHEL and , 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 Intellect Design witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bulls

Overall, market breadth favoured losers as 1,775 tocks ended in the green, while 1,673 names ended 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)

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