Here’s how analysts read the market pulse:
“The highly anticipated Jackson Hole meeting didn’t bring much surprise. The Fed chair expressed satisfaction with the progress of policy measures and reiterated its commitment to managing inflation within target bounds. This has raised expectations of a rate hike during the November Fed meeting. Global markets traded on a positive note, led by Asian peers, as China’s measures to support the property sector boosted sentiment. On the domestic front, all major sectors, along with mid and small caps, remained positive, except for the IT sector, which faced concerns related to potential rate hikes,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Nifty saw Put writing today at 19,300 and 19,200 levels for this week’s expiry. Markets for the next few days are likely to trade between 19,000 on the downside and 19,600 on the upside. Bank Nifty open interest data suggests that this week’s expiry is likely to happen between 44,000 on the downside and 44,800 on the upside. We expect Bank Nifty to be the stronger index as we head into this week’s expiry, owing to a demand level being present at its current price level,” stated Rahul Ghose, Founder & CEO – Hedged.
That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:
US market
Wall Street’s main indexes rose on Monday as a pullback in Treasury yields boosted megacap growth stocks ahead of key inflation and jobs data this week that will offer more clues on the Federal Reserve’s interest rate path.
Apple, Microsoft, Alphabet and Tesla rose between 0.5% and 1.3%, as the yield on the U.S. 10-year Treasury note slipped to 4.20%.
The S&P 500 communication services and technology sectors led gains among the 11 major S&P sub-indexes, rising 1.2% and 0.8% respectively.At 9:36 a.m. ET, the Dow Jones Industrial Average was up 262.87 points, or 0.77%, at 34,609.77, the S&P 500 was up 30.97 points, or 0.70%, at 4,436.68, and the Nasdaq Composite was up 124.67 points, or 0.92%, at 13,715.31.
European shares
European shares advanced on Monday, with technology stocks leading gains following an upbeat close on Wall Street and a rise in China-exposed industrials after Beijing announced measures to aid its ailing stock market.
The pan-European STOXX 600 added 0.6% after posting its first weekly gain in four.
Technology stocks advanced 1.1%, their first climb in three sessions, tracking an overnight rally on Wall Street after U.S. Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole symposium on Friday.
Tech View: Small positive candle
A small positive candle was formed on the daily chart with an upper and lower shadow and with almost identical open and close. This market action indicates the formation of a Doji pattern, albeit not a classical one. Normally, such Doji formations after a significant upmove or downmove indicate trend reversals. However, having formed this pattern alongside the negative candle of Friday signals a range-bound action in the market.
Stocks showing bullish bias
The momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Indiabulls Housing Finance, Jamna Auto, ICICI Bank, and Indus Towers, among others.
The MACD is renowned 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 Adani Ports SEZ, JM Financial, HCL Tech, Visa Steel, and CG Power and Industrials among others. A bearish crossover on the MACD on these counters indicates that they have just begun their downward journey.
Most active stocks in value terms
HDFC Bank (Rs 2,272 crore), Jio Financial Services (Rs 1,892 crore), RIL (Rs 1,551 crore), Indiabulls Housing (Rs 2,100 crore), and Zomato (Rs 1,311 crore), among others, were the most active stocks on the NSE in value terms. High activity on a counter in value terms can help identify the counters with the highest trading turnovers of the day.
Most active stocks in volume terms
Vodafone Idea (Shares traded: 47.66 crore), JP Power (Shares traded: 36.56 crore), Suzlon Energy (Shares traded: 19.26 crore), Zomato (Shares traded: 14.11 crores), and Indiabulls Housing Finance (Shares traded: 11.36 crore) as well as South Indian Bank (Shares traded: 8.63 crore), among others, were the most traded stocks in the session on the NSE.
Stocks showing buying interest
Shares of Railtel Corporation, GMDC, Indiabulls Housing Finance, Genus Power, and Maharashtra Scooter, 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 Rajesh Exports, Kshitij Polyline, Penta Gold, and CMI, among other stocks, hit their 52-week lows, signaling a bearish sentiment on the counters.
Sentiment meter favors bulls
Overall, the market breadth favored bulls as 2,026 stocks ended in the green, while 1,722 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)
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