The NSE Nifty 50 index rose 0.03% to 25,018. The S&P BSE Sensex rose 0.02% to 81,712.
Analysts read the pulse of the market as follows:
Jatin Gedia, Technical Research Analyst at Sharekhan said, “On the daily chart we can see that Nifty is witnessing profit booking at higher levels around the all-time high of 25,078. Negative divergence and crossover on momentum indicator could be a reason for vulnerability at higher levels. On the downside, crucial support is placed at 24960-24855 zone. On the upside, immediate hurdle is placed at 25200 – 25250.”
Rupak Dey of LKP Securities said, “The sentiment has entered an indecisive phase as Nifty closed with a doji pattern on the daily chart. The significant presence of both call and put option writers at 25,000 strike price strengthens the technical setup. As a result, Nifty is likely to remain range bound or experience a marginal correction in the near term. On the downside, 24,800 may act as an immediate support, while a rise above 25,100 could push Nifty towards 25,300.”
That said, let's take a look at what some key indicators are pointing to for Wednesday's action:
US Market:
Wall Street's main indexes fell on Tuesday, with tech stocks under pressure as investors took a cautious stance ahead of Nvidia's anticipated earnings report and key economic data at the end of the week. Nvidia, a leader in the recent bull market, saw its stock fall marginally ahead of reporting quarterly results that are expected to show revenue growth of more than 100%. Chip stocks also struggled, with Broadcom shedding 0.8% and Micron dropping 1.3%, dragging the Philadelphia SE Semiconductor Index down 0.5%.
The Dow Jones Industrial Average fell 18.23 points, or 0.04%, to 41,222.29, the S&P 500 lost 4.72 points, or 0.08%, to 5,612.12, and the Nasdaq Composite fell 52.09 points, or 0.29%, to 17,673.67.
European shares:
European stocks rose on Tuesday, led by gains in banking and travel stocks. The pan-European STOXX 600 index rose 0.2% to 518.88 points. Banco Santander climbed 2.5% after a €1.525 billion share buyback, while Ryanair, easyJet and Wizz Air saw notable gains. Despite Germany's GDP falling 0.1% in the second quarter of 2024, the DAX rose 0.4%.
Technical view: doji candle
Nifty formed a neutral doji candle on the daily chart, indicating an indecisive outlook in the near future.
To pick up the momentum, new higher levels need to be established soon, which could open the door for further gains. Key levels to watch include the bullish gap around 24975 and 24850 as immediate support, with resistance at 25080-25100 and then 25400. Traders are advised to keep an eye on the above levels and trade accordingly, said Rajesh Bhosale of Angel One.
Open interest (OI) data showed that the highest OI on the call side was seen at 25,300 and 25,500 strike prices, while the highest OI on the put side was at 24,800 strike price.
Stocks showing bullish trend:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading in shares of Page Industries, Zen Technologies, Suven Pharma, Pearl Global Industries and HDFC Life Insurance.
The MACD is known to indicate trend reversal in the traded securities or index. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the security's price may witness an upward movement and vice versa.
Stocks showing further weakness:
The MACD showed bearish signals on stocks like Ajanta Pharma, Symphony, KFin Technologies, Suraj Estate Developers, Tips Industries and Paytm. The bearish crossover on the MACD on these stocks indicated that they have just started their downward journey.
Most active stocks in terms of value:
Tata Elxsi (Rs 4,681 crore), HDFC Bank (Rs 2,932 crore), Tata Technologies (Rs 2,520 crore), ICICI Bank (Rs 1,992 crore), Zee Entertainment Enterprises (Rs 1,513 crore), GSPL (Rs 1,427 crore) and CESC (Rs 1,425 crore) were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify counters with the highest trading turnover during the day.
Most active stocks in terms of volume:
Vodafone Idea (Shares Traded: 41.5 crore), Zee Entertainment Enterprises (Shares Traded: 10.1 crore), Tata Teleservices (Shares Traded: 7.2 crore), CESC (Shares Traded: 7 crore), YES Bank (Shares Traded: 6.5 crore), Alok Industries (Shares Traded: 4.8 crore), and Castrol India (Shares Traded: 3.6 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Stocks of KFin Technologies, CESC, Caplin Point, Godrej Industries, Century Textiles, Castrol India and Jubilant Farmova witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks under selling pressure:
No major stock hit its 52-week low on Tuesday.
The sentiment meter is in favor of the bulls:
Overall, the market witnessed a bullish trend with 2,150 stocks ending in the green while 1,812 ended in the red.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)