Ahead of Market: 12 things that will decide D-Street action on Wednesday

Here’s how analysts read the market pulse:-

“The overall chart pattern of Nifty50 indicates a decisive down trend. A move below the support of 16,800 levels could open the door down to lower 16,200-16,000 levels in the near term. Any pull back rally could find resistance around 17,100 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan said despite multiple attempts during the day, the index failed to cross the 20-hour MA as well as the 40-day EMA.

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

US stocks rise

Benchmarks on Wall Street gained on Tuesday even in the face of surging Treasury yields as a positive earnings reports helped investors shrug off potential risks from an aggressive rise in US interest rates and the Ukraine war.

Shares of megacap companies like Microsoft Corp, Apple Inc and Amazon.com, typically sensitive to bond yields, jumped more than 1% despite hawkish comments from St. Louis Federal Reserve Bank President James Bullard.

The benchmark 10-year note yield rose to 2.924, while the 30-year U.S. Treasury yield hit 3% for the first time since early 2019.

European shares fall

European stock markets mostly fell Tuesday, as the impact of the Ukraine war spreads with the IMF slashing its global growth forecasts.

Trading for the first time since Thursday after an extended Easter weekend, London’s benchmark FTSE 100 index was flat Tuesday afternoon, the Paris CAC 40 shed 0.7 percent and Frankfurt’s DAX index was down 0.1 percent.

The International Monetary Fund sharply downgraded its 2022 global growth forecast to 3.6 percent in its latest outlook report Tuesday, 0.8 points lower than its previous estimate in January.

Tech View: decisively negative

A fag end selling sent Nifty50 below its support level of 17,000 on Tuesday. The index formed a Bearish Belt Hold-like candle on the daily chart, as the weakness was seen from the word go.

F&O: Support at 17,000

On the derivatives front, as we move closer to the expiry day, 17,200 has become a key hurdle now, from being a support a day before. On the other hand, 16,800 is emerging as the immediate support level.

Stocks showing bullish bias

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

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 Easy Trip Planners, Bayer Cropscience, Route Mobile, Canara Bank,

Enterprises and . Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms

HDFC Bank (Rs 5,044 crore), HDFC (Rs 4,370 crore), Reliance Industries (Rs 3,171 crore), Infosys (Rs 2,710 crore),

(Rs 2,393 crore), Adani Wilmar (Rs 1,750 crore) and Tata Power (Rs 1,350 crore) were among the most active stocks on Dalal Street 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

Vodafone

(Shares traded: 13 crore), YES Bank (Shares traded: 8 crore), (Shares traded: 7 crore), Suzlon Energy (Shares traded: 6 crore), Coal India (Shares traded: 6 crore) and Coal India (Shares traded: 6 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest

MRPL,

, IIFL Wealth, NLC India, , Chola Investment and witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure

No stock witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bears

Overall, market breadth favoured losers as 1,294 stocks ended in the green, while 2,120 names settled with cuts.


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