The main market indices ended Tuesday’s session with weak performance. The Nifty recorded a fall of 74 points to close at 17,656 points. However, broader markets defied this trend, posting gains. It is worth mentioning that the stock exchanges did not operate on Wednesday due to the celebration of Balipratipada, the fourth day of the Diwali festival.
Analysts’ view of the market is as follows:
Om Mehra, technical expert at Choice Broking, noted that Nifty’s daily chart has formed a bearish candle, indicating the possibility of profits after higher levels. For the index to rise, it must exceed 17,850 points. However, the DMA (50-day Moving Average) of Nifty 50, which is still close to 17,500 points, will serve as a solid support in the next expiry of the month. Indicators such as RSI and MACD can turn from neutral to slightly negative.
Vinod Nair, head of research, mentioned that the domestic market pared its initial gains due to pressure from sectors like FMCG and private banks on the benchmark index. Furthermore, he highlighted that the market’s attention is focused on policy announcements from central banks, with the European Central Bank planning to raise interest rates at its next meeting. Upcoming US GDP data will provide more clarity on expectations regarding the Fed’s interest rate decisions.
On the international stage, the Nasdaq, a US technology index, opened down 2% due to discouraging results and warnings issued by giants such as Microsoft and Alphabet, which generated losses for mega-capitalization companies and raised concerns about a possible economic slowdown. . The Dow Jones Industrial Average also fell 0.31%. The S&P 500 and Nasdaq Composite followed the downtrend.
In Europe, stocks fell after hitting a one-month high, with technology stocks leading the losses. Unfavorable results from Wall Street giants and a warning from a Dutch semiconductor supplier, ASM, contributed to fears of an economic slowdown. The STOXX 600 index, which encompasses European companies, fell 0.2%.
On the technical front, the Nifty 50 formed a bearish candle and a bearish daily pattern, limiting its upside momentum. Analysts point out that the index’s moving averages have started to rise slightly, but the challenge will be to overcome the 17,580 point mark to continue rising, with supports at 17,580 and 17,442 points.
In stock analysis, the Momentum Convergence Divergence (MACD) indicator signaled an upward trend for companies like RVNL, SAIL and Cipla, among others. On the other hand, the MACD showed bearish signs for stocks like CG Power and others, indicating a start of bearish movement.
In terms of market activity, ICICI Bank, RIL, Axis Bank, SBI and [name not specified] were among the most active stocks in terms of value. On the other hand, PNB, BHEL, Zomato, [name not specified], and Yes Bank were the most traded stocks in terms of volume.
Some stocks like NHPC, Canara Bank, Bharat Dynamics and others have sparked strong buying interest, hitting fresh 52-week highs. This signals bullish sentiment in the market. On the other hand, stocks like Nykaa, Intellect Design, Teamlease and IEX faced heavy selling pressure, hitting their 52-week lows, indicating bearish sentiment.
Overall, the breadth of the market favored sellers, with 2,067 shares closing in the red and 1,364 shares closing in the green.
