Here’s how analysts read the market pulse:
“Gaining buoyancy from a slew of measures to shield the banking sector, global markets witnessed recovery ahead of the US Fed policy announcement on Wednesday. The momentum was passed onto domestic equities, which were led by large-cap banks. However, the gains were capped by IT stocks on caution over muted deal wins from the BFSI segment in the western markets,” said Vinod Nair, Head of Research at Geojit Financial Services.
“A decisive move above the hurdle of 17,200 levels is likely to bring sharp upside momentum for the Nifty in the near term. Immediate support is at 16,950 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
That said, here’s a look at what some key indicators are suggesting for Wednesday’s action:
Wall Street‘s main indexes climbed on Tuesday after the rescue of Credit Suisse calmed nerves about a bigger banking crisis, while investors awaited the outcome of the Federal Reserve’s monetary policy meet.
Traders largely expect a 25-basis-point rate hike from the Fed on Wednesday, half the 50-bps increase expected before the banking crisis triggered by Silicon Valley Bank and Signature Bank’s collapse.
At 9:41 a.m. ET, the Dow Jones Industrial Average was up 292.28 points, or 0.91%, at 32,536.86, the S&P 500 was up 39.32 points, or 1.00%, at 3,990.89, and the Nasdaq Composite was up 108.64 points, or 0.93%, at 11,784.18.
All the 11 S&P 500 sector indexes were in the green, with financials leading the advance.
European shares rose nearly 1% on Tuesday, with banking stocks leading the recovery following a raft of measures to stabilise the sector, while investors hoped for less-aggressive moves by the U.S. Federal Reserve at its policy meeting this week.
The pan-European STOXX 600 index was up 0.9% by 0809 GMT, extending gains after the index sharply recouped intraday losses and closed the session up nearly 1% on Monday. Europe’s banking index jumped 1.8%, with shares in Swiss banks Credit Suisse trading flat and UBS gaining 3.5%.
Tech View: Small positive candle
A small positive candle was formed on the daily chart with a gap up opening. Nifty is currently placed at the crucial overhead resistance of around 17,150-17,200 levels and the market is now showing signs of upside breakout of the hurdle.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Network18 Media, IDFC First Bank, Saregama India, CSB Bank and Jubilant Foodworks, 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 signaling weakness ahead
The MACD showed bearish signs on the counters of GAIL, Gujarat Pipavav, Trent, Torrent Power and Zydus Wellness 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
HDFC Bank (Rs 2,588 crore), RIL (Rs 2,228 crore), ICICI Bank (Rs 1,587 crore), SBI (Rs 1,534 crore) and Infosys (Rs 1,190 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
YES Bank (Shares traded: 18.58 crore), Vodafone Idea (Shares traded: 5.03 crore), Devyani International (Shares traded: 4.62 crore), PNB (Shares traded: 4.07 crore) and Zomato (Shares traded: 3.16 crore) were among the most traded stocks in the session on the NSE.
Stocks showing buying interest
Shares of Siemens, KPIT Technologies and Godrej Consumer witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Sentiment meter favours bulls
Overall, market breadth favoured bulls as 2,003 stocks ended in the green, while 1,515 names settled with cuts.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)