“The Relative Strength Index (RSI) dropped from 60 to 58, and India VIX spiked, closing at 12.15. The daily chart with a red candle with a small body indicates not much changes. However, the hourly chart reveals Lower High and Lower Low patterns, signalling slight weakness,” said Om Mehra, Technical Analyst, SAMCO Securities.
That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:
The Nasdaq led gains among the main U.S. stock indexes on Monday as Microsoft climbed on news that former OpenAI head Sam Altman will join the software giant, while investors awaited more clues on when the Federal Reserve might begin cutting interest rates.
Microsoft’s shares advanced 1.4%, notching a record high after CEO Satya Nadella said Altman is set to join the company to lead a new advanced AI research team.
The Fed is expected to issue minutes of its November meeting on Tuesday, which will be parsed for clues on the direction of U.S. interest rates. Black Friday sales will provide a gauge on the state of U.S. consumer spending.
At 9:43 a.m. ET, the Dow Jones Industrial Average was up 39.98 points, or 0.11%, at 34,987.26, the S&P 500 was up 9.06 points, or 0.20%, at 4,523.08, and the Nasdaq Composite was up 66.94 points, or 0.47%, at 14,192.42.European shares
European shares were subdued on Monday after a strong week driven by aggressive bets on interest rate cuts, with drugs-to-pesticides group Bayer sliding to a more than 14-year low and weighing on the healthcare sector and Germany’s benchmark index.
The pan-European STOXX 600 was little changed by 0945 GMT after jumping nearly 3% last week.
As investors started pricing in 100-basis-point rate cuts for 2024 with the first one seen as soon as April, European Central Bank officials shunned market optimism, flagging still-high inflation and a somewhat resilient economy.
Nifty on Monday formed a small red candle with minor upper and lower shadows on the daily chart.
The short-term trend of Nifty continues to be range-bound. There is a possibility of some more consolidation or minor weakness in the short-term before showing upside bounce from the lows. Immediate support is placed around 19600-19550 levels, said Nagaraj Shetti of HDFC Securities.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Tata Investment Corporation, Dixon Tech, HDFC AMC, Muthoot Finance and Birla Corp.
The MACD is known for signaling 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 Piramal Enterprises, Castrol India, Easy Trip Planners, Raymond, Metro Brands, Cholamandalam Investment & Finance, 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
HDFC Bank (Rs 1,455 crore), Bajaj Finance (Rs 1,355 crore), ICICI Bank (Rs 975 crore), Axis Bank (Rs 812 crore), SBI (Rs 718 crore), and Coal India (Rs 662 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
Coal India (Shares traded: 1.9 crore), Tata Steel (Shares traded: 1.9 crore), SBI (Shares traded: 1.3 crore), Power Grid (Shares traded: 1.1 crore), ICICI Bank (Shares traded: 1 crore) and HDFC Bank (Shares traded: 0.9 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of Talbros Auto, Tata Investment Corporation, Trent, Bharti Airtel, 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 Rajesh Exports, IRM Energy, Sheetal Cool Projects were among those that witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bears
Overall, market breadth favoured losers as 1,876 stocks ended in the green, while 1,939 names settled with cuts.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)