Ahead of Market : 10 things that will decide D-Street action on Tuesday
On Monday, Indian shares finished practically flat as gains in banking firms outweighed losses in the information technology sector. The BSE Sensex gained 14 points, or 0.02%, to settle at 66,023, while the NSE Nifty50 fell below the 19,700
mark.
Having said that, here's a look at what some important indications are indicating for Tuesday's action:
The US market
Stocks with strong purchasing interest. Stocks are under selling pressure
European stocks
Doji candle, from a technical standpoint
Stocks with a positive leaning
Stocks are indicating impending weakness
In terms of volume, the most active stocks are
Wall Street is down due to results concerns.
US equities dipped on Tuesday as firms reported third-quarter earnings, as profit forecasts plummeted amid increasing interest rates and relentless inflation, but increases in biotech Amgen restricted Dow falls.
According to Refinitiv statistics, analysts now predict S&P 500 company earnings to have increased 4.1% year on year in the third quarter, compared to an 11.1% gain forecast at the start of July.
At 9:40 a.m. ET, the Dow Jones Industrial Average was down 57.94 points, or 0.20%, at 29,144.94, the S&P 500 was down 24.75 points, or 0.69%, at 3,587.64 and the Nasdaq Composite was down 92.97 points, or 0.88%, at 10,449.13.
European markets end down.
European equities sank for the fifth consecutive session on Tuesday, weighed down by a surge in global government bond yields, with investors concerned about a probable recession and the impact on corporate profitability of a quick rise in
interest rates.
The Stoxx 600 pan-European index fell 0.5%.
Technical Analysis: Long negative candle
To the daily chart, a long negative candle consumed the previous session's long bull candle to the downside. This chart pattern indicates a fast comeback from the recent upward bounce. Following a period of range-bound trading, the market
appears to be returning to its critical support level of roughly 16,800 in the immediate term.
Stocks with a bullish slant
Moving Average Convergence Divergence (MACD), a momentum indicator, revealed a bullish trade setting on Axis Bank, Morepen Labs, M&M Financial Services, Panacea Biotec, Heidelberg Cement, and JMC Projects.
The MACD is well-known for alerting traders to trend reversals in traded equities or indexes. When the MACD crosses above the signal line, it indicates a bullish signal, indicating that the security's price may rise, and vice versa.
Stocks indicate impending weakness
India Cements, Kalyan Jewellers, Lemon Tree, Aditya Birla Capital, and KPIT Technologies all had negative MACD readings. A bearish crossing on the MACD on these counters showed that the downtrend had only just begun.
Most active stocks in value terms
RIL (Rs 953 crore), Infosys (Rs 829 crore), TCS (Rs 445 crore), HUL (Rs 284 crore), and Bajaj Finance (Rs 268 crore). Higher activity on a counter in terms of value can assist in identifying the counters with the biggest trading turns during
the day.
The most traded stocks on the NSE were Vodafone Idea (shares traded: 5.94 crore), Suzlon Energy (shares traded: 4.46 crore), JP Power (shares traded: 4.37 crore), Tata Steel (shares traded: 1.27 crore), and Reliance Power (shares traded:
1.04 crore).
FREQUENTLY ASKED QUESTIONS
The Basics: Supply and Demand In a market economy, any price movement can be explained by a temporary difference between what providers are supplying and what consumers are demanding. This is why economists say that markets tend towards equilibrium, in which supply equals demand. This is how it works with stocks, too.
The law of supply and demand holds true as in any market. Some factors, such as the rate of inflation, have the power to move the market as a whole higher or lower. Other factors, such as corporate earnings, may move a single company or an industry sector.
A stock market fall can occur as a result of a large disastrous event, an economic crisis, or the bursting of a long-term speculative bubble. Reactionary public fear in response to a stock market fall can also be a key cause, prompting panic selling that further depresses prices.
The markets are likely to remain under pressure till they adjust and digest the fact that interest rates are actually not going down in a hurry. "We believe that high-interest rates are not good for the markets. Both the yields and markets cannot stay at an elevated level for too long.
