Analysts say Adani group stocks have a “collateral” effect on markets, especially financials, which were hammered earlier due to fear of exposure to the conglomerate. “When you have a credible long-term investor putting in a significant chunk of money into Adani group stocks, it’s a confidence booster,” said Atul Suri, CEO of Marathon Trends – PMS.
What key indicators suggest about market action on Wednesday.
Wall Street slips
Wall Street’s main indexes opened marginally lower on Tuesday in cautious trading ahead of Federal Reserve Chair Jerome Powell’s testimony before Congress that could shed more light on the central bank’s interest rate hike plans.
The Dow Jones Industrial Average fell 3.13 points, or 0.01%, at the open to 33,428.31.
The S&P 500 opened lower by 0.16 points at 4,048.26, while the Nasdaq Composite dropped 4.76 points, or 0.04%, to 11,670.98 at the opening bell.
European shares dip
European shares opened marginally lower on Tuesday, with technology stocks leading declines ahead of U.S. Federal Reserve Chair Jerome Powell’s testimony, while luxury stocks gave back gains on bleak China data.
The pan-European STOXX 600 index dipped 0.1% by 0816 GMT, with the rate-sensitive tech sector index down 0.8%.
Powell’s testimony before Congress, set to begin at 1500 GMT (10 am EST), is keenly awaited for insights into the Fed’s next move on interest rates.
Tech View: Shooting star candle
“On the daily chart, a shooting star kind of candlestick pattern has formed, suggesting a bearish reversal. A fall below 17650 may trigger a steep correction in the market. While a sustained trade above 17750 may induce buying in the market,” said Rupak De, Senior Technical Analyst at LKP Securities.
Stocks showing bullish bias
Moving Average Convergence Divergence (MACD), which is a momentum indicator, showed bullish signs on the counters of Aptus Value Housing, BSE, Tejas Networks, MRPL, IRB Infra Dev and Manappuram Finance. The MACD is known for hinting at 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 signaling weakness ahead
The MACD showed bearish signs on the counters of Route Mobile, J B Chemicals, Shree Cements, Hinduja Global among others. Bearish crossover on the MACD indicates a downward trend for the stocks.
Most active stocks in value terms
Adani Enterprises (Rs 5,493 crore), Adani Ports (Rs 2,624 crore), HDFC Bank (Rs 2,202 crore), ICICI Bank (Rs 1,210 crore), Tata Steel (Rs 1,133 crore), RIL (Rs 1,132 crore), and HDFC (Rs 2,674 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 on Monday.
Most active stocks in volume terms
Tata Steel (Shares traded: 10,68,68,000) Adani Ports (Shares traded: 3,74,35,000), Adani Enterprises (Shares traded: 2,71,80,000), SBI (Shares traded: 1,61,62,000), ONGC (Shares traded: 1,44,91,000), ICICI Bank (Shares traded: 1,39,04,000) and HDFC Bank (Shares traded: 1,35,02,000) were among the most traded stocks in terms of volumes on NSE.
Stocks showing buying interest
Shares of Mahanagar Gas, Jindal Stainless, GSPL, Power Finance Corporation, Sonata Software, Gujarat Pipavav, P&G Health among others saw strong buying interest from market participants as they scaled their fresh 52-week highs, which indicates bullish sentiment.
Stocks seeing selling pressure
Shares of Aarti Drugs, Relaxo Footwear, Bayer CropScience, Ipca Labs, Cipla, V Mart Retail among others hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bears
Overall, market breadth favoured bulls on Monday as 2,041 stocks ended in the green, while 1,543 scrips settled with cuts.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
