This is how analysts read the market pulse:Nifty has formed a significant bear candle for the second consecutive session at higher levels with lower high and lower low signaling extension of profit booking. Going forward, the index consolidates within the range of 26277-25,700, providing a base for the next leg of the upward move.
“The near-term support is placed around 25,600-25,800, which is the confluence of the 50-day EMA and the lower band of the ascending channel over the past two months. We expect the index to remain above the same level, and hence the current breather should be used to accumulate diversified shares of quality mid and large caps,” Bajaj Broking said.
U.S. markets The S&P 500 and Nasdaq rose Monday, led by mega-cap stocks, as mounting bets on a Federal Reserve rate cut in December fueled gains and investors looked to new data for clues about the central bank’s next move. Dovish comments from influential New York Fed President John Williams provided some respite on the policy front last week, but were also a reflection of how divided policymakers were ahead of the December FOMC meeting.
Investors estimate a nearly 80% chance that the central bank will cut rates by 25 basis points next month, up from 42% a week earlier, according to CME Group’s FedWatch Tool.
European shares
Shares of European arms makers fell for a second straight session on Monday to their lowest level in more than four months as peace talks to end the war in Ukraine continued.
Washington and Kiev said in a joint statement that they had drawn up a “refined peace framework” following talks in Geneva on Sunday. An index of aerospace and defense companies fell 2% at 1354 GMT, the lowest since early July. On Friday, the stock fell 3.4%, posting its biggest weekly loss since March.
The broader European STOXX 600 index was flat.
Technical view
“A further retracement is likely if the index opens or closes below the 10-day EMA at 25950, which could push it towards the 20-day EMA at 25850 levels. Support for the index is at 25850, and a cautious stance is advisable if it breaks below this level, while resistance remains at 26100,” LKP Securities analysts said.
Most active stocks in terms of turnover
Paytm (Rs 6,574 crore), Fortis Healthcare (Rs 5,476 crore), GE T&D (Rs 5,173 crore), Siemens Energy (Rs 4,754 crore), HDFC Bank (Rs 3,226 crore), Infosys (Rs 3,004 crore) and RIL (Rs 2,834 crore) were among the most active stocks on BSE in value terms. Higher activity in a counter in terms of value can help identify the counters with the highest trading turnover per day.
Most active stocks by volume
Vodafone Idea (Shares traded: Rs 67.51 crore), YES Bank (Shares traded: Rs 13.9 crore), JP Power (Shares traded: Rs 12.04 crore), Suzlon (Shares traded: Rs 9.63 crore), Fortis Healthcare (Shares traded: Rs 5.93 crore), Motherson Sumi (Shares traded: Rs 5.93 crore) and NBCC (Shares traded: Rs 5.5 crore) were among the most actively traded stocks on NSE in terms of volume.
Stocks that show buying interest
Shares of Asahi Ind Glass, Mahindra Finance, PTC Industries, Eicher Motors, Federal Bank, AU SFB and Shriram Finance were among the stocks that witnessed strong buying interest from market participants.
Stocks see selling pressure
Stocks that witnessed significant selling pressure were Reliance Infra, Advent Hotels, Chambal Fertilisers, Deepak Nitrite, Tejas Networks, Suven Pharma and Birgade Enterprises.
Sentiment gauge bearish
Market sentiment was bearish. Of the 4,449 shares traded on the BSE on Monday, 3,087 shares saw a decline, 1,162 rose, while 162 shares remained unchanged.
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