NEW DELHI: As Nifty ended above the 11,450 level on Monday, it formed a bullish candle on the daily chart.
Chandan Taparia of MOFSL said the major trend of the index remains positive and the recent breakout of the consolidation could commence the next leg of rally ahead of its August F&O expiry.
“The index has to continue to hold above 11,350 level to witness an up-move towards 11,600 level, while on the downside medium-term support exists in the 11,250-11,200 zone,” he said.
Vinod Nair of Geojit Financial Services said investors are advised to remain cautious considering the market run-up and be selective in their investments.
Ajit Mishra of Religare Broking expects Nifty to test 11,600 soon.
“With no major event, markets will continue to take cues from the global indices. The recent buoyancy in the banking space is indeed a positive sign however any fresh escalation between India and China at LAC might dent the momentum. We suggest following the trend while keeping strong risk management in place,” he said.
That said here’s a look at what some of the key indicators are suggesting for Tuesday’s action:
US stocks hit all-time highs on virus treatment hopes
The S&P 500 and the Nasdaq scaled new heights on Monday, boosted by technology mega-caps and U.S. approval for the emergency use of blood plasma in treating COVID-19 patients. The Dow Jones Industrial Average was up 127.30 points, or 0.46%, at 28,057.63, the S&P 500 was up 26.80 points, or 0.79%, at 3,423.96. The Nasdaq Composite was up 146.54 points, or 1.30%, at 11,458.34.
European shares bounce off lows
European stocks bounced from a two-week low on Monday as signs of progress in developing a COVID-19 treatment offset fears about a resurgence in virus cases across the continent that could risk stifling an economic recovery. The pan-European STOXX 600 index rose 1.3%, mirroring gains for Asian markets after the U.S. health regulator said on Sunday it authorized the use of blood plasma from patients who have recovered from COVID-19 as a treatment.
Tech View: Nifty forms bullish candle
Nifty50 on Monday topped the 11,450 mark and formed a bullish candle on the daily chart with no lower wick, suggesting buying on the idex from the word go. Analysts said the NSE barometer needs to hold above 11,350 level to keep the positive momentum going. Nifty has been forming higher lows and immediate supports have shifted higher from 11,250 to 11,350 level.
Check out the candlestick formations in the latest trading sessions
F&O: VIX cooling down suggests bullish stance
India VIX fell 4.10 per cent to 19.12 level. Volatility is cooling down gradually on a week-on-week basis, which suggests bullish stance. The buy-on-decline strategy can continue in this market. Options data suggested a trading range between 11,250 and 11,600 levels for the coming few days.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Monday showed bullish trade setup on the counters of SBI, Deepak Fertilisers, Deepak Nitrite, Rashtriya Chemicals, Laurus Labs, GSFC, Sagardeep Alloys, Kothari Sugar, Wockhardt, Hexaware Technologies, Jayshree Tea, PSP Projects, AksharChem (India), Agro Tech Foods, Archidply Industries, NACL Industries, B L Kashyap & Sons, Blue Dart Express, Sheela Foam, Bosch, Schaeffler India, AstraZeneca Pharma, Zota Healthcare, Poddar Pigments and Bigbloc Construction among others.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of RBL Bank, Cadila Healthcare, Cyient, Tree House Education, Nahar Poly Films, Autolite (I), Prabhat Dairy, HIL, Bal Pharma, Paisalo Digital, Anjani Portland, MPS, Intense Technologies, Hester Biosciences, Tide Water Oil and Greenlam Industries among others.
Monday’s most active stocks
RIL (Rs 3153.98 crore) , Eicher Motors (Rs 2608.38 crore) , Bajaj Finance (Rs 2152.50 crore) , HDFC Bank (Rs 2045.60 crore) , Bharti Airtel (Rs 1507.52 crore) , ZEEL (Rs 1493.74 crore) , ICICI Bank (Rs 1242.88 crore) , SBI (Rs 1079.87 crore) , Kotak Bank (Rs 833.89 crore) and Axis Bank (Rs 810.39 crore) were among the most active stocks on Dalal Street on Monday in value terms.
Monday’s most active stocks in volume terms
Vodafone Idea (shares traded: 52.97 crore) , YES Bank (shares traded: 33.12 crore) , ZEEL (shares traded: 7.47 crore) , IDFC First Bank (shares traded: 6.20 crore) , GMR Infra (shares traded: 6.07 crore) , SBI (shares traded: 5.38 crore) , NTPC (shares traded: 4.91 crore) , BHEL (shares traded: 4.77 crore) , Federal Bank (shares traded: 4.48 crore) and Bank of Baroda (shares traded: 3.92 crore) were among the most traded stocks in the session.
Stocks seeing buying interest
Deepak Nitrite, Fine Organic Industries Ltd., Indiabulls Ventures (PP), IndiaMART InterMESH Ltd. and Affle (India) witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Monday signalling bullish sentiment.
Stocks seeing selling pressure
Edelweiss Mutual Fund – BHARAT Bond ETF – April 2025 and ICICI Prudential Mutual Fund – ICICI Prudential IT ETF witnessed strong selling pressure in Monday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls
Overall, market breadth remained in favour of bulls. As many as 288 stocks on the BSE 500 index settled the day in green, while 212 settled the day in red.
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Stock bulls pushed the benchmark indices higher, as signs of progress in developing a Covid-19 treatment offset fears of resurgence in the virus cases that could stifle an economic recovery. Heavy buying financial majors such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank and HDFC supported the benchmark indices. Sensex closed 364 points higher at 38,799 while Nifty ended 95 points up at 11,466. We caught up with AK Prabhakar of IDBI Capital Markets to try and understand the market undercurrent.