Ahead of Market: 10 Key Factors that will Decide D-Street Action on Tuesday

As the Indian benchmark equity indices logged record closing highs on Monday, led by gains in state-owned companies, it’s essential to understand the key factors that will influence the market’s performance on Tuesday. Here are the top 10 things that will decide the D-Street action:

1. Nifty’s Pivot Zone: The zone of 24,610 is likely to be seen as the pivot zone, and a sustainable breakthrough could boost further momentum. On the lower end, 24,500-24,400 is expected to cushion any upcoming blips, followed by the sacrosanct support of 24,150.

2. Technical Analysis: According to Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One, the Nifty is able to sustain gains after breaking above 24,400. There can be a retest of the breakout, which should be used as a buying opportunity. The short-term target of 24,610 has been achieved, and hence, we extend it further towards 24,840.

3. Dow’s Record High: The Dow hit a record high in Wall Street’s upbeat trading on Monday, boosted by a 2% gain in UnitedHealth as health insurers also jumped on a likely Trump win.

4. European Shares: European shares moved lower on Monday after a raft of dour updates from companies made investors more cautious. The continent-wide STOXX 600 was down 0.1% as of 0844 GMT, snapping a three-session win streak.

5. ECB President’s Remarks: Focus will now be on ECB President Christine Lagarde’s remarks later in the day, ahead of the central bank’s policy meeting later this week.

6. Nifty’s Near-Term Trend: The near-term trend of Nifty remains positive. Having sustained above the hurdle of 24,400 levels (1.618% Fibonacci extension), there is a higher possibility of further gradual upmove in Nifty towards 24,950 levels in the next one week. Immediate support is at 24,450, said Nagaraj Shetti of HDFC Securities.

7. OI Data: OI data showed that on the call side, the highest OI was observed at 25,000 followed by 24,700 strike prices, while on the put side, the highest OI was at 24,500 strike price.

8. MACD Signals: The MACD showed bullish trade on the counters of LTIMindtree, Axis Bank, Banco Products, Rallis India, and Triveni Engineering & Industries among others. The MACD is known for signaling trend reversals in traded securities or indices.

9. Most Active Stocks: IRFC (Rs 3,713 crore), HDFC Bank (Rs 2,706 crore), SBI (Rs 2,226 crore), TCS (Rs 2,038 crore), ICICI Bank (Rs 1,922 crore), RVNL (Rs 1,873 crore), and HCL Tech (Rs 1,650 crore) were among the most active stocks on the NSE in value terms.

10. Market Breadth: Market breadth favoured bulls as 2,036 stocks ended in the green, while 2,004 names settled in the red.

In conclusion, these 10 key factors will play a crucial role in deciding the D-Street action on Tuesday. As students preparing for competitive exams, it’s essential to understand these factors to make informed decisions in the stock market.

Historical Context:

The article discusses the key factors that will influence the performance of the Indian benchmark equity indices, specifically the Nifty, on Tuesday. The Nifty had logged a record closing high on Monday, led by gains in state-owned companies. The article highlights the importance of understanding these factors to make informed decisions in the stock market.

The Dow Jones Industrial Average (Dow) had hit a record high in Wall Street’s upbeat trading on Monday, boosted by a 2% gain in UnitedHealth and other health insurers. This is significant because the Dow’s performance can have a ripple effect on global markets.

The European shares had moved lower on Monday after a raft of dour updates from companies made investors more cautious. This is relevant because the European market is a significant player in the global economy and its performance can impact the Indian market.

The article also mentions the upcoming policy meeting of the European Central Bank (ECB) and the remarks of ECB President Christine Lagarde, which could have an impact on the market.

Summary in Bullet Points:

• The Nifty’s pivot zone is expected to be around 24,610, with 24,500-24,400 acting as a cushion and 24,150 as a support level. • Technical analysis suggests that the Nifty is likely to sustain gains after breaking above 24,400 and could retest the breakout level. • The Dow’s record high could have a positive impact on the Indian market. • European shares moved lower on Monday due to cautious investor sentiment. • ECB President Christine Lagarde’s remarks could influence the market. • The near-term trend of the Nifty remains positive, with a possibility of further gradual upmove towards 24,950 levels. • OI data shows high open interest at 25,000 and 24,700 strike prices on the call side, and 24,500 strike price on the put side. • MACD signals bullish trade on certain counters. • Most active stocks on the NSE included IRFC, HDFC Bank, SBI, TCS, ICICI Bank, RVNL, and HCL Tech. • Market breadth favored bulls, with 2,036 stocks ending in the green and 2,004 names settling in the red.

Overall, the article highlights the importance of understanding these key factors to make informed decisions in the stock market. It provides a comprehensive analysis of the market’s performance and the factors that will influence it on Tuesday.