Here’s how analysts read the pulse of the market:
Shrikant Chouhan, of Kotak Securities, said the index saw higher and lower formation on the daily chart, which is seen as broadly positive.
“The 17,775-17,700 range could offer immediate support. On the other hand, the 18,000 and 18,200 levels could be a major resistance level. A partial profit reservation is advised at the 18,100-18,200 level.” , said Chouhan.
Mazhar Mohammad of Chartviewindia.in suggested that the index may take a break after a recent sharp rise. “A dip into the 17,750-700 can be a comfortable buying opportunity. If Nifty50 reaches the 17,950 level, we can expect a higher target around 18,300, “Mohammad said.
That said, here’s a look at what some of the key indicators suggest for Tuesday’s action:
A volatile week ended on a lukewarm note for Wall Street on Friday, with all three major indices ending near the flat line. Persistent concerns over a default by China’s second-largest real estate group Evergrande continued to dampen the risk appetite of US investors.
The Euro STOXX 600 index closed down nearly 1% on Friday as investors remained concerned about the development of the situation around Evergrande. European companies are heavily exposed to the Chinese economy and with economists lowering China’s growth prospects, investors worried about ramifications for the mainland.
Tech View: Nifty heads for a break
The Nifty50 index ended the week with gains of 1.5% despite concerns over Evergrande and the US Fed’s suggestion to gradually reduce its bond buying program. Analysts have suggested that traders could register partial profits around 18,100-18,200 points, while the index could find support at 17,800.
F&O: Purchase of calls without money
Traders writing 18,000 strike price call calls ahead of the September derivative series expiration suggested the level may act as major resistance. However, put options writing was seen at both the 17,800 and 17,900 strike prices, indicating an in-store rangebound move for the index.
Stocks showing a bullish bias
The Moving Average Convergence Divergence (MACD) momentum indicator showed a bullish trade pattern on the counters of Tata Chemicals, Chembal Fertilizers, Infosys, KPIT Technology, Mahindra & Mahindra and PetronetLNG.
The MACD is known to signal trend reversals in the securities or indices being traded. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may experience an upward movement and vice versa.
Stocks signal weakness ahead
The MACD showed bearish signs on the counters of Bank of Baroda, CESC, Exide Industries, J&K Bank, Nocil, Sterling and Wilson, Zensar Technologies, Hindustan Oil Exploration, JK Tire, Great Eastern Shipping, Narayana Hrudayalaya, Dr. Reddy’s and Mindspace Business parks. The bearish cross on the MACD on these counters indicated that they have just started their downward journey.
Most active stocks in terms of value
Bharti Airtel (Rs 5257 crore), Zee Entertainment (Rs 2342 crore), Indus Towers (Rs 1800 crore), DLF (Rs 1789 crore), RIL (Rs 1745 crore), Tata Steel (Rs 1707 crore), HDFC Bank (Rs 1,657 crore), Infosys (Rs 1,467 crore), Oberoi Realty (Rs 1,364 crore) and Godrej Properties (Rs 1,236 crore) were among the most active stocks on Dalal Street in terms of value. Higher activity on a meter in terms of value can help identify meters with the highest turnover during the day.
Most active stocks in terms of volume
Vodafone Idea (Shares traded: 94 crore), Zee Entertainment (Shares traded: 7.3 crore), YES Bank (Shares traded: 7.1 crore), Bharti Airtel (Shares traded: 7.1 crore), Indus Towers (Shares traded: 5.8 crore), GMR Infra (Shares traded: 5.4 crore), BHEL (Shares traded: 5.3 crore), SAIL (Shares traded: 4.2 crore), ONGC (Shares traded: 3.4 crore) and PNB (Shares traded: 3.3 crore) were among the most traded. actions in the session.
Stocks showing buying interest
Indus Towers, Chembal Fertilizers, Oberoi Realty, KPR Mills and KEI Industries saw strong buying interest from market participants as they increased their new 52 week highs, signaling bullish sentiment.
Stocks see the pressure to sell
DU Digital Tech, CarTrade Tech and Inventure Growth saw strong selling pressure and hit their 52 week low, signaling bearish sentiment on these counters.
The sentiment counter favors bears
Overall, the breadth of the market has remained in favor of bears. No less than 155 shares of the BSE500 index settled the day in the green, while 345 settled the day in the red.
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