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

NEW DELHI: Nifty on Monday formed a small bullish candle on the daily scale, with a long wick, suggesting that every intraday selling got bought into. Analysts said it needs to breach the 15,900-15,915 zone to witness a sustained rise.

Here’s how analysts read the market pulse:-

Independent analyst Manish Shah said the 15,900-15,950 zone has been tested three times. “The general rule is that the price should go through the fourth time. Odds of an upside breakout are higher,” he said.

Chandan Taparia of Motilal Oswal Securities said a decisive breakout of the 15,632-15,915 range will commence the next leg of the rally. “A hold above the 15,800 level is a must for Nifty50 to move towards 15,915 level,” he said.

That said, here’s a look at what some of the key indicators are suggesting for Wednesday’s action:

Nasdaq hits new high; inflation data weighs

The Nasdaq index reversed early declines to hit a record high on Tuesday, helped by a rise in growth-linked megacap stocks and as earnings season kicked off on a positive note, while a solid rise in consumer prices in June weighed on sentiment. At 10:12 a.m. ET, the Dow Jones Industrial Average was down 50.34 points, or 0.14 per cent, at 34,945.84, the S&P 500 was down 1.57 points, or 0.04 per cent, at 4,383.06, and the Nasdaq Composite was up 17.86 points, or 0.12 per cent, at 14,751.10.

F&O: VIX drops to give bullish vibes

India VIX fell 2.83 per cent from 12.99 to 12.62 level. A decline in the VIX after the recent spurt has again provided stability to the market to commence the next move. On the options front, maximum Put OI stood at 15,500 levels followed by 15,000, while maximum Call OI was seen at 16,000 followed by 15,800 levels.

Check out the candlestick formations in the latest trading sessions

Tech View: Nifty signals breakout ahead

Nifty50 had a positive session on Tuesday, as it breached its immediate resistance at 15,750 level with ease. The index formed a small bullish candle on the daily scale, with a long wick, suggesting that every intraday selling got bought into.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Bombay Dyeing, Welspun Corp, Axis Bank, Gayatri Projects, Apollo Tyres, Raymond, Kalpataru Power,

, HDFC, CESC, REC, Sanghi Industries, Rossell India, , Sumit Woods, MCX, , Quick Heal Technology, , Minda Industries, Rane Holdings, Lupin and Exide Industries, 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 Ashoka Buildcon, Aegis Logistics, Delta Corp, Orient Paper, Titagarh Wagons, Zen Technologies, EIH, Waterbase, Surana Telecom, Coforge, Texmo Pipes, Ginni Filaments, Vinati Organics, Emmbi Industries, Ramco Systems, Ponni Sugars (Erode), Savita Oil Tech, Pfizer, Timken India, Somany Ceramics, Asian Hotels (East) and TwentyFirst Century. Bearish crossovers on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms

HDFC Bank (Rs 1,357.85 crore), ICICI Bank (Rs 1,311.57 crore), Tata Steel (Rs 976.07 crore), HDFC (Rs 940.27 crore), BSE (Rs 939.30 crore), Adani Ports SEZ (Rs 868.48 crore), Tata Motors (Rs 798.06 crore), Axis Bank (Rs 752.82 crore), CDSL (Rs 715.04 crore) and Infosys (Rs 687.47 crore) were among Tuesday’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

JP Power (shares traded: 13.39 crore), YES Bank (shares traded: 10.15 crore), Vodafone Idea (shares traded: 9.84 crore), Reliance Communication (shares traded: 7.75 crore),

(Shares traded: 4.46 crore), Suzlon Energy (shares traded: 4.34 crore), NMDC (shares traded: 3.60 crore),

(shares traded: 3.52 crore), PNB (shares traded: 3.37 crore) and BHEL (shares traded: 3.11 crore) were among Tuesday’s most traded stocks in the session.

Stocks showing buying interest

CDSL, Kalpataru Power, V Mart Retail, Aditya Birla Retail and Finolex Cables witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Sentiment meter favours bulls

Overall, the market breadth remained in favour of the bulls. As many as 281 stocks on the BSE500 index settled the day in the green, while 214 settled the day in the red.

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