Here’s how analysts read the market pulse:
“Volatility has re-emerged as initial Q1 results are below the expectations. Sector wise setbacks were experienced in IT and FMCG, unveiling weak demand and high input costs. Banks are mixed while Pharma stocks are withholding the volatility in anticipation of a better demand from developed economies, reduction in US pricing issues and expansion in operating margins,” Vinod Nair, Head of Research at Geojit Financial Services, said.
“The short term trend of Nifty remains weak and the present weakness with volatility is expected towards the important support of 19500-19400 levels before showing an upside bounce from the lows. Immediate resistance is placed at 19780 levels,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.
That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:
US market
Wall Street’s main indexes climbed on Monday as investors braced for earnings from megacap growth and technology companies, while focusing on an interest rate decision from the Federal Reserve.
All eyes will be on the quarterly reports of Microsoft , Google-owner Alphabet and Meta Platforms this week, as market participants will be keen to know whether their earnings justify sky-high valuations. At 11:34 a.m. ET, the Dow Jones Industrial Average was up 185.61 points, or 0.53%, at 35,413.30, the S&P 500 was up 17.55 points, or 0.39%, at 4,553.89, and the Nasdaq Composite was up 11.54 points, or 0.08%, at 14,044.34.
European shares
Spanish equities led losses among European stock markets on Monday after no clear winner emerged in the country’s general election, pointing to a political gridlock and raising nervousness among investors.
The benchmark IBEX index sank 1.1% to hit a near one-week low after the results from weekend vote left neither the left nor right bloc with an easy path to form a government.
Shares of Madrid-listed utilities, that had priced in a victory for right-wing parties, fell. Endesa and Iberdrola fell 3.7% and 1.4%, respectively. A gauge of Spanish lenders tumbled 1.9%.
The pan-European STOXX 600 slipped 0.2% by 0723 GMT.
Tech View: Negative candle
A reasonable negative candle was formed on the daily chart with minor upper shadow. Technically, this pattern indicates short-term weakness in the market with sell on rise opportunity. Nifty is currently placed at the immediate support of 10 day EMA at 19650 levels and the important lower support of 20 day EMA is placed around 19450 levels. The said 20 day EMA has been holding for the past three months and has offered support for Nifty to witness upside bounces from it in the past.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Suzlon Energy, Zomato, Jain Irrigation, GMR Infra and NTPC 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 Infosys, SAIL, Biocon, IGL and Tech Mahindra 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
RIL( Rs 2956 crore), HDFC Bank (Rs 2699 crore) and ICICI Bank (Rs 2163 crore), ITC (Rs 1868 crore) and Kotak Bank (Rs 1340 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
Suzlon Energy (Shares traded: 51.79 crore), YES Bank (Shares traded: 27.47 crore), Vodafone Idea (Shares traded: 20.1 crore), SJVN (Shares traded: 12.79 crore) and Utkarsh SFB (Shares traded: 11.56 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of SJVN, Inox Wind, Utkarsh SFB, REC and Rites 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 Zee Learn, Drone Destination, Pentagon Rubber and CMI among others stocks hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bears
Overall, market breadth favoured bears as 1,710 stocks ended in the green, while 1,995 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)