Mazhar Mohammad, Chief Strategist, Chartviewindia.in, said the market is in a directionless phase.
iStockIndia VIX moved up 0.41 per cent from 12.94 to 12.99 level, while every decline in the VIX after the spurt of last session has provided some stability to the market.
NEW DELHI: Nifty on Monday negated the formation of lower highs in the last three sessions, but ended up forming a bearish candle on the daily chart. Analysts said investors should remain neutral amid market volatility.
Here's how analysts read the market pulse:-
Mazhar Mohammad, Chief Strategist, Chartviewindia.in, said the market is in a directionless phase. “Projections in any direction are bound to fail, as sideways phases will be dominated by volatile moves. Traders are advised to remain neutral till Nifty witnesses a breakout in either direction," he said.
Did you Know?
Stock score of Reliance Industries Ltd moved down by 1 in a month on a 10-point scale.
Amit Trivedi of YES Securities said the market is portraying classic characteristics of a consolidation phase. “Nifty may continue to oscillate within the 15,600-15,900 zone and sector- or stock-specific themes are likely to do well,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Tuesday's action:
Nasdaq, S&P 500 hit new highs
The Nasdaq and the S&P 500 scaled new peaks on Monday, with investors awaiting the start of the second-quarter earnings season and a batch of economic data. At 10:04 a.m. ET, the Dow Jones Industrial Average was up 84.93 points, or 0.24 per cent, at 34,955.09, the S&P 500 was up 4.41 points, or 0.10 per cent, at 4,373.96, and the Nasdaq Composite was down 20.22 points, or 0.14 per cent, at 14,681.70.
European stocks hit all-time highs European stocks scaled new highs on Monday on broad-based gains, but worries about the pace of economic recovery made defensive sectors the best bid while travel stocks slumped with the Delta variant of coronavirus becoming dominant. The pan-European STOXX 600 index rose 0.7 per cent and hit 461.10, extending gains from Friday after a tumultuous week. Germany's DAX also briefly touched a new high of 15,806.900 before closing just below that level.
F&O: Every fall in VIX stabilising market India VIX moved up 0.41 per cent from 12.94 to 12.99 level, while every decline in the VIX after the spurt of last session has provided some stability to the market. On the options front, maximum Put Open Interest stood at 15,500 levels followed by 15,000, while there was maximum Call OI at 16,000 followed by 15,800 levels.
Tech View: Nifty in a directionless phase It was another flat close for Nifty50 thanks to profit booking at higher levels and the index failed to get a break through the strong resistance zones. Analysts advised traders to be neutral in such a directionless market. "Nifty is forming a triangular pattern on the hourly chart and is expected to break out on the upside. Thus, on the higher side, the 15,750-15,790 zone will be the key hurdle zone to watch out for," said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas.
Stocks showing bullish bias Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of
, Hatsun Agro Product and Narayana Hrudayalaya, among others. The MACD is known for signalling 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 HDFC Bank, Nectar Lifesciences, Rashtriya Chemicals, Tata Coffee, Kesoram Industries, Cummins India, Liberty Shoes, Metropolis Healthcare, Shalimar Paints, L&T Technology Services, Navneet Education, Dr. Reddy's Labs, Kalyani Steel, Celebrity Fashions, Royal Orchid Hotels, Indian Metal, Ganges Securities, Ahluwalia Contra and Adroit Infotech. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms Tata Steel (Rs 2,066.32 crore), HDFC (Rs 1,677.15 crore), Indiabulls Real Estate (Rs 1,449.33 crore), HDFC Bank (Rs 1,079.33 crore), Tata Motors (Rs 995.55 crore), RIL (Rs 827.35 crore), JSW Steel (Rs 807.11 crore), Granules India (Rs 763.50 crore), Infosys (Rs 715.23 crore) and DLF (Rs 712.74 crore) were among Monday’s 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 MPS Infotecnics (Shares traded: 13.52 crore), Vodafone Idea (Shares traded: 11.36 crore), JP Power (Shares traded: 10.90 crore), Indiabulls Real Estate (Shares traded: 10.82 crore), YES Bank (Shares traded: 10.30 crore), Orient Green Power (Shares traded: 7.21 crore), Federal Bank (Shares traded: 6.65 crore), IDFC (Shares traded: 4.65 crore), Ujjivan SFB (Shares traded: 4.33 crore) and Suzlon Energy (Shares traded: 4.04 crore) were among Monday’s most traded stocks in the session.
Stocks showing buying interest Indiabulls Real Estate,
, Hatsun Agro, Welspun India and Equitas Small Finance Bank witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure Ganga Forging, OCL Iron and Steel and Rajvir Industries witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls Overall, the market breadth remained in favour of the bulls. As many as 278 stocks on the BSE500 index settled the day in the green, while 216 settled the day in the red.
Podcast: How to position for market volatility? Volatility is making a comeback on D-Street. As the market hovers near lifetime highs, how should investors position themselves? Will the market fall further in the coming days? Where is Bank Nifty headed now? What do the technical charts suggest?
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