Mirroring positive global sentiments, Indian equities ended Tuesday’s session higher ahead of the crucial US inflation data which is likely to ease further. At the close, Nifty advanced 159 points to 17,930. Broader markets, on the other hand, traded in the negative, with Nifty Midcap 100 ending lower.
Here’s how analysts read the market pulse:
“Domestic indices edged higher, inspired by their global counterparts, as investors await the US inflation numbers today. The whammy over India’s retail inflation breaching the RBI’s tolerance level was cooled by WPI inflation easing to 4.73% in January. IT stocks were in focus as investors anticipated a slowdown in US inflation, which could result in favourable Fed policy,”said Vinod Nair, Head of Research at
.
“After a positive start, Nifty gradually inched higher as the day progressed. Buying aggression is witnessed after crossing the intraday resistance around 17,880 levels. The benchmark index closed above its previous 9 sessions high at 17,929 with a gain of 0.89 % and witnessed a consolidation breakout. Prices have whipsawed its bearish engulfing candlestick pattern and have closed above the same,” said Rohan Patil, Technical Analyst, Samco Securities, said.
That said, here’s a look at what some key indicators are suggesting for Wednesday’s action:
US market:
U.S. stock index futures edged higher on Tuesday ahead of January consumer inflation data that could offer investors further clues on how long the Federal Reserve will stick to its hawkish monetary policy.
The Labor Department report, due at 8:30 a.m. ET, is expected to show consumer prices climbed 0.5% in January, on a month-over-month basis following a 0.1% rise in December. However, on a year-on-year basis inflation is expected to have eased to 6.2% last month from a 6.5% rise in December.
Markets have had an upbeat start to this year, driven by a renewed interest in growth stocks that were left battered in 2022 as the Fed worked to bring steep prices under control.
European shares
European shares opened higher on Tuesday, lifted by travel stocks after holiday group TUI’s flagged a positive travel recovery trend for the upcoming summer season.
The continent-wide STOXX 600 index rose 0.3% by 0812 GMT. European travel & leisure stocks rose 0.6%.
TUI’s German-listed shares rose 1.4%, while its shares listed in London added 1.5% after the company reported more bookings and higher first-quarter revenue.
Germany’s DAX index lagged its European peers, dragged down by Thyssenkrupp’s 5.3% slide after as the German warship-to-car parts conglomerate said its quarterly operating profit dropped by a third.
Tech View: Bullish candle
Nifty formed a bullish candle, which however, still remains below the high of Budget day (i.e. 17972). In the recent past, markets have failed to provide follow-up actions on either side; hence price action from here on needs to be closely watched out, as sustenance above 17900 is essential to make an attempt till 18100.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Oil India, ONGC,
, and L&T among others.
The MACD is known for signaling trend reversals in 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
, , , and KPI Green Energy among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
(Rs 2,532 crore), RIL (Rs 1,563 crore ) and ICICI Bank (1,152 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 highest trading turnovers in the day.
Most active stocks in volume terms
Zomato (Shares traded: 7.9 crore), Yes Bank (Shares traded: 6.7 crore), JP Power (Shares traded: 6.2 crore) and
(Shares traded: 5.09 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of
, , and CG Power 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
, Adani Gas, Adani Green, and among others hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bears
Overall, market breadth favoured bears as1,296 stocks ended in the green, while 2,205 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)