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


NEW DELHI: The benchmark indices ended Monday’s session on a positive note, with Nifty breaching 18,200 levels. Broader markets performed still better. The markets are shut today on account of Guru Nanak Jayanti

Vinod Nair, Head of Research at

,”The domestic market battled to find a clear direction but it ended up making gains. Losses in pharmaceutical companies were offset by buying in PSU banks, auto, and metal equities. PSU banks took the lead in the rally as major sector players announced solid results. Fall in oil prices as China disputed rumours of lifting Covid restrictions and stronger US jobs data showed that the US economy is expanding, helped market.”

Nagaraj Shetti, Technical Research Analyst, HDFC Securities said,”After showing a sustainable upside bounce from the lows on Friday, Nifty shifted into a decent upmove amidst volatility on Monday”.

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

US market

US stock indexes were set to open higher on Tuesday as voting began in the crucial midterm election that will determine control of Congress, with investors hoping for a political gridlock that could prevent radical policy changes.

European shares

European shares rose and Wall Street futures edged higher on Tuesday, as market focus turned to the U.S. mid-term elections, which analysts say could lead to a boost for equities. At 1226 GMT, the MSCI world equity index, which tracks shares in 47 countries, was up 0.1%. Europe’s STOXX 600 was up 0.2%, holding just below the previous session’s high, which was its highest in nearly two months.

Tech View: Doji-type candlestick

The headline index Nifty formed a Doji-type candlestick in Monday’s session as it ended the session above 18,200 points. With an upper and long lower shadow, charts indicate indecisiveness between bulls and bears.

Chartists said a sustainable move above the high of Doji at 18255 levels is likely to nullify the negative impact of the pattern. The momentum indicator RSI was in a positive crossover. Nifty supports are seen at 18,100 level while resistance is around 18,350 level.

Stocks showing bullish bias:

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

, Zomato, , Mishra Dhatu 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 Tech India, Gokul Agro,

, 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 term

SBI (Rs 2725 crore),

(Rs 2361 crore), ((Rs 2281 crore), and RIL(Rs 1412 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

Bank of Baroda ( Shares traded: 14.45 crore), PNB (Shares traded: 10.95 crore), RVNL (Shares traded: 10.52 crore),

(Shares traded: 10.17 crore) and JP Power (Shares traded: 9.31 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest

Shares of RVNL, BoB,

, and SJVN 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 Voltas,

, Medplus, and witnessed strong selling pressure and hit its 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bulls

Overall, market breadth favoured losers as 2,006 stocks ended in the green, while 1,570 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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