Indian stocks fell prior to the release of domestic retail inflation data later on Monday, while lingering uncertainty and fallout from the Adani Group’s market rout continued to act as a cloud. The Nifty50 ended the day 0.48 percent lower at 17,770.90, while the S&P BSE Sensex declined 0.41 percent to 60,431.84.
How analysts interpret the market pulse:
“With the results season for the third quarter finishing this week, markets traded weakly throughout the day in anticipation of today’s predicted inflation reading.” PSU banks and IT companies weighed on indices as traders booked profits on a dreary trading day in which the majority of sector indices closed in the red. At the end of the third quarter, individual investors’ ownership of equities reached a new high of 24.5%, even as they reminded themselves of rising fixed income rates on dreary days like today, according to S Ranganathan, head of research at Spectrem Group.
“The NASDAQ 100 index produced a bearish engulfing pattern, indicating more pain in the near future.” A breach of 17721 could accelerate a decline into the 17517–17545 range. The 17877 level may be difficult to surpass in the near future if prices continue to rise. The Q3 earnings season could conclude within the next two days. “The majority of firms that have reported earnings in the recent few days have disappointed the street, which is evident in today’s bad advance decline ratio,” said Deepak Jasani, head of retail research at HDFC Securities.
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Nonetheless, here is a look at what key indicators imply for Tuesday’s activity:
US market
On Monday, investors poured into beaten-down megacap growth stocks, while a decrease in Treasury yields boosted confidence. Meta Platforms jumped on concerns that Facebook’s parent company was preparing additional layoffs.
At 10:12 a.m. ET, the Dow Jones Industrial Average was up 196.57 points, or 0.58 percent, to 34,065.84; the S&P 500 was up 21.17 points, or 0.52 percent, to 4,111.63; and the Nasdaq Composite was up 75.59 points, or 0.65 percent, to 11,793.71.
Europe’s stocks
According to dealers, European stock markets climbed on Monday as investors shrugged off Asian losses and anticipated reducing inflation in the United Kingdom and the United States. The pan-European Stoxx 600 index was up 0.7% by mid-afternoon, with all sectors and major bourses in positive territory.
Tech View: Negative Candle
A respectable negative candle was created on the daily chart, which implies range movement with a mild tilt for the market. On the daily chart, the lesser degree of higher tops and bottoms persisted, and present weakness may be consistent with the construction of a new higher bottom. Nagaraj Shetti, a technical research analyst at HDFC Securities, says that higher bottom reversion must be shown to be true.
Companies with a bullish bias
The Moving Average Convergence Divergence (MACD) momentum indicator showed that trades on the counters of Pricol and others are included.
The MACD is recognised for indicating trend reversals in traded equities and indexes. When the MACD crosses above the signal line, a bullish signal is generated, indicating that the security’s price may rise, and vice versa.
Stocks indicating impending weakness
The MACD displayed bearish signals for IDFC, M&M, NCC, and Wipro.
amongst others A bearish MACD crossover on these counters showed that they had just commenced a downward trend.
According to Coforge, the most valuable actively traded equities were Rs 3352 crore, Rs 2140 crore, and Rs 1109 crore for RIL, which were among the most actively traded stocks on the NSE in terms of value. Higher value-based activity on a counter can help find the counters with the most trades during the day.
most active stocks in terms of volume
On NSE, among the most actively traded equities during the session were (Shares traded: 17.75 crore), Zomato (Shares traded: 8.61 crore), (Shares exchanged: 5.61 crore), and PNB (Shares traded: 5.36 crore).
Fasteners, Archean Chemical, HG Infra, CG Power, and other stocks that showed buying interest, which is a sign of a good mood, rose to new 52-week highs because market participants were buying a lot.
Stocks are seeing selling pressure.
stocks of Pfizer’s shareshave reached their 52-week lows, indicating a pessimistic market mood.
Sentimentality favours bears.
Overall, market breadth favours bears, as 1,256 stocks close higher and 2,337 stocks close lower.