Buying action was more visible in the broader market as the smallcap index rallied over 1% with Welspun Corp, Engineers India and Swan Energy rallying 7-9% each.
That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:
US market
The dollar eased and global equities rebounded on Friday as Wall Street rallied on doubts that interest rates will go higher even after Federal Reserve Chair Jerome Powell cautioned that tighter monetary policy might be needed to tame inflation.
The Dow Jones Industrial Average rose 1.15%, the S&P 500 gained 1.56% and the Nasdaq Composite added 2.05%, its biggest percentage jump since May. For the week, the Dow rose 0.7%, the S&P 500 gained 1.3% and the Nasdaq advanced 2.4%.
European shares
European shares fell on Friday, hurt by higher bond yields, as hawkish comments from the US Federal Reserve Chair doused investor optimism that interest rates have peaked, while dour results from Diageo and Richemont also weighed. The pan-European STOXX 600 closed 1.0% lower, easing from a three-week high hit on Thursday, and ending the week marginally lower.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Godrej Industries, KSB Ltd, Sun TV, Welspun India, HCL Tech, Tata Motors, NTPC, among others.
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 RVNL, IDBI Bank, Tata Steel, Hindustan Zinc, Voltas, APL Apollo, Affle India, 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
Coal India (Rs 342 crore), HDFC Bank (Rs 296 crore), RIL (Rs 165 crore), ICICI Bank (Rs 147 crore), Tata Motors (Rs 147 crore), and SBI (Rs 113 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
Tata Steel (Shares traded: 7.4 crore), ICICI Bank (Shares traded: 4.3 crore), SBI (Shares traded: 3.6 crore), ITC (Shares traded: 3.2 crore), Axis Bank (Shares traded: 3 crore) and Tata Motors (Shares traded: 2.8 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of Coal India, ONGC, Power Grid and Sun Pharma witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure
Shares of Kaira Can, Sheetal Cool and Binny were among those that witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bulls
Overall, market breadth favoured winners as 2,904 stocks ended in the green, while 688 names settled with cuts.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
