shrewd: Ahead of Market: 10 things that will decide stock market action on Wednesday

With Nifty breaking above the key hurdle at 17,500 on Monday, the bulls now look much stronger on Dalal Street. The positive momentum should continue with Nifty eyeing between 17,700 and 17,800 zones.

Here is how analysts read the pulse of the market:

Ajit Mishra, VP of Research, Religare Broking, said Nifty decisively cleared the hurdle at 17,400 and is now targeting 17,800. Besides the performance of global markets, the latest leg of the earnings season coupled to key national data like the IIP, CPI and WPI would remain on participants’ radar for clues, he said.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said Nifty’s short-term trend remains positive with limited action. “A sustained move above the 17,550 levels could be seen as an upside break of the range and this could pull Nifty towards the next important resistance at 17,800-17,900 levels in the near term. Immediate support is placed at 17,430 levels.

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

American market

Wall Street futures pointed to slim gains. Wall Street closed virtually flat on Monday after hit jobs data last week bolstered expectations that the Federal Reserve would clamp down on inflation, while a revenue warning from chipmaker Nvidia raised expectations. reminded investors of the slowdown in the US economy.

European stocks

European stocks fell on Tuesday as investors cautiously awaited key U.S. inflation data later in the week for clues on the Federal Reserve’s next decision on interest rate hikes. The pan-European STOXX 600 index fell 0.3%, retreating after posting its best session in nearly two weeks on Monday.

Technical view

The Nifty50 closed in the green for the second day in a row on Monday to close above its crucial resistance level of 17,500. It formed a strong bullish candle on the daily charts, suggesting demand at lower levels.

Stocks Showing a Bullish Bias

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

and Crisil.

The MACD is known to signal 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 upward movement and vice versa.

Stocks Signal Weakness Ahead

The MACD showed bearish signs on the counters of

, , , Pfizer, Emami and Central Bank. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks by value

SBI (Rs 1,687 crore), RIL (Rs 1,204 crore), HDFC Bank (Rs 1,117 crore),

(Rs 1,1016 crore), (Rs 750 crore) and (Rs 704 crore) were among the most active stocks on NSE in terms of value. Higher activity on a counter in terms of value can help identify counters with the highest turnover for the day.

Most active stocks by volume

(Shares traded: 4.1 crore), SBI (Shares traded: 3.2 crore), NTPC (Shares traded: 1.7 crore), (Shares traded: 1.6 crore), ONGC (Shares traded: 1.2 crore) crore) and ICICI Bank (Shares traded: 1.2 crore crore) were among the most traded stocks during the session on NSE.

Stocks showing buying interest

Shares of

HAL, , Siemens, , M&M and Metro Brands witnessed strong buying interest from market participants as they hit new 52-week highs, signaling bullish sentiment.

Stocks are under selling pressure

Shares of

and witnessed strong selling pressure and hit a 52-week low, signaling bearish sentiment on the meters.

Sentiment meter favors bulls

Overall, market breadth favored losers as 1,894 stocks ended in the green, while 1,613 names settled with cuts.

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

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