Analysts said the market looks weak in the short term and Nifty to go further down to 9,850 and 9,900 levels.
NEW DELHI: Nifty failed to sustain at the intra-day high level for the second consecutive session and ended near the day's low level on Tuesday, which is technically a weak signal. The 50-pack also broke an important support at 10,100 level.
Analysts said the market looks weak in the short term and Nifty to go further down to 9,850 and 9,900 levels.
Vinod Nair of Geojit Financial Services said Nifty witnessed profit booking and resistance at the 100-DMA level at 10,300, which has been a crucial resistance for the index.
Deepak Jasani of HDFC Securities said Nifty’s next support lies in the 9,889-9,944 band, and resistance at 10,177. “One needs to watch the midcap space, which is still seeing some rotational buying," he said.
Nagaraj Shetti of HDFC Securities said Nifty’s short-term trend may have reversed. “One may expect further weakness in the market next session. On the lower side, the Nifty should find support at 10,000-9,950 levels. It is expected to slip below this area in 3-4 sessions,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Wednesday’s market action:
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US shares retreat after rally US stocks fell on Tuesday as investors paused ahead of a Federal Reserve meeting that could offer views on the recent signs of economic recovery that drove the tech-heavy Nasdaq to an all-time high in the previous session. At 7:22 pm (IST), the Dow Jones Industrial Average was down 362.63 points, or 1.32 per cent, at 27,209.81, the S&P 500 was down 33.47 points, or 1.04 per cent, at 3,198.92. The Nasdaq Composite was down 32.98 points, or 0.33 per cent, at 9,891.77.
European shares fall as BAT weigh European shares fell on Tuesday as declines in cyclical stocks and UK's British American Tobacco threw a spanner into a rally driven by optimism over a global recovery from the coronavirus crisis. The pan-European STOXX 600 index fell 1.3 per cent, with eurozone banks down 5.6 per cent after a six-day run of gains.
Tech View: Nifty losing momentum fast
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After forming a 'Bearish Belt Hold' candle in Monday’s session, Nifty on Tuesday faced huge selling pressure at 10,300 level for the second day in a row. The index ended up forming a small bearish candle, with a long upper wick, which confirmed weakness in momentum.
Check out the candlestick formations in the latest trading sessions F&O: Trading range widens at 9,500-10,200
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Nifty’s maximum Put open interest stood at 9,000 level followed by 9,500 level, while maximum Call OI was at 11,000 followed by 10,500 levels. There was marginal Call writing at 11,000 followed by 10,200 level while Put writing was seen at 9,800 followed by 9,900 levels. Options data suggested a wider trading range between 9,500 and 10,200 levels.
Stocks showing bullish bias Momentum indicator Moving Average Convergence Divergence (MACD) on Tuesday showed bullish trade setup on the counters of Raj Television Network and ICRA. Stocks signalling weakness ahead The MACD showed bearish signs on the counters of Exide Industries, Indraprastha Gas, Ambuja Cements, India Cements, Jubilant Foodworks, MindTree, Sequent Scientific, Indian Energy Exchange, Parag Milk Foods, Syngene International, J B Chemicals & Pharma, Hikal, Nestle India, Alankit, Poly Medicure, Kothari Petrochemicals, Sanginita Chemicals, Bhageria Industries and TCPL Packaging. Most active stocks in value terms HDFC Bank (Rs 3105.71 crore) , Bajaj Finance (Rs 3070.34 crore) , Axis Bank (Rs 1994.40 crore) , IndusInd Bank (Rs 1898.49 crore) , Reliance Industries (Rs 1855.22 crore) , SBI (Rs 1808.43 crore) , Titan Company (Rs 1757.42 crore) , ICICI Bank (Rs 1708.70 crore) , Voda Idea (Rs 1621.16 crore) and HDFC (Rs 1616.05 crore) were among the most active stocks on Dalal Street on Tuesday in value terms.
Most active stocks in volume terms Vodafone Idea (Shares traded: 155.73 crore) , BHEL (Shares traded: 15.79 crore) , SBI (Shares traded: 9.66 crore) , RBL Bank Ltd. (Shares traded: 9.63 crore) , Tata Motors (Shares traded: 7.95 crore) , Ashok Leyland (Shares traded: 7.44 crore), Bank of Baroda (Shares traded: 7.11 crore) , IDFC First Bank Ltd. (Shares traded: 6.43 crore) , PNB (Shares traded: 6.39 crore) and Uttam Value Steel (Shares traded: 5.91 crore) were among the most traded stocks in the session.
Stocks seeing buying interest Shilpa Medicare, GMM Pfaudler, Ruchi Soya Industries, Adani Green Energy and Alok Industries witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Tuesday signalling bullish sentiment. Stocks witnessing selling pressure Krishana Phoschem witnessed strong selling pressure in Tuesday’s session and hit its 52-week low, signalling bearish sentiment on these counters.
Sentiment meter favours bears Overall, market breadth remained in favour of bears. As many as 158 stocks on the BSE 500 index settled the day in green, while 341 settled the day in red.
Podcast: Have the bears returned to D-Street? The pressure is clearly showing in the market after the recent rapid rise. US FOMC’s announcement is due tomorrow, and that can have a bearing on global markets. So are the bears back on Dalal Street? Or was it a temporary drop after the big rally?
