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

After seeing alternate bouts of buying and selling, the headline index Nifty closed 86.8 points higher at 17,577.50. Except for IT, all the other sectors ended in the green, with PSU Banks being the biggest gainer.

Here’s how analysts read the market pulse:

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One, said the coming session can slightly be a tricky one as the index is likely to land up in a corridor of uncertainty. “Hence, it’s better to follow one step at a time for a couple of trading sessions.”

Siddhartha Khemka, Head – Retail Research,

, said Nifty is consolidating near 17,500 levels and is witnessing buying interest at lower levels.

While the overall trend remains positive, bouts of volatility are likely to continue for a while, he said.

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

S&P 500, Nasdaq rise
The S&P 500 and the Nasdaq advanced in choppy trading on Tuesday, helped by megacap growth and technology stocks as yields slipped from one-month highs hit in the previous session, while weak business activity data raised concerns about economic growth.

At 10:00 a.m. ET, the Dow Jones Industrial Average was down 18.75 points, or 0.06%, at 33,044.86, the S&P 500 was up 7.26 points, or 0.18%, at 4,145.25, and the Nasdaq Composite was up 49.09 points, or 0.40%, at 12,430.66.

European markets close lower

European markets closed lower Tuesday, with investors digesting a rise in oil prices and fresh economic data out of the eurozone. The pan-European Euro Stoxx 600 provisionally ended down 0.5%

The euro also fell to fresh two-decade lows after data showed eurozone business activity contracted for a second straight month in August as the war in Ukraine is expected to ensure the outlook for the European economy remains bleak.

Tech View: Bullish Piercing Line pattern

Nifty50 formed a bullish candle on a daily chart. It also formed a Bullish Piercing Line pattern, which signals a possible reversal. A follow-up buying may suggest a short-term bottom is in place, analysts said.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of

, , Sterling Wilson Solar, and .

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

, SAIL, Polycab, Fine Organic, and . A 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 1,175 crore),

(Rs 1,149 crore), ICICI Bank (Rs 1,134 crore), Adani Ports (Rs 1,123 crore), HDFC Bank (Rs 1,094 crore), and Infosys (Rs 856 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 the highest trading turnovers in the day.

Most active stocks in volume terms

Tata Steel (Shares traded: 7.5 crore), ONGC (Shares traded: 2.5 crore), Tata Motors (Shares traded: 1.8 crore), NTPC (Shares traded: 1.4 crore), Adani Ports (Shares traded: 1.3 crore) and ICICI Bank (Shares traded: 1.3 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of GE Shipping,

, , BEL, , and Campus Activewear witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure

Shares of Sanofi India,

and were among those that witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured winners as 2,042 stocks ended in the green, while 1,370 names settled with cuts.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)