Domestic stocks looked set to see a gap-down start on Tuesday, following an overnight steep fall in US stocks amid fears of rising inflation in the world’s largest economy. Asian markets were all in deep red and technical charts for key domestic indices hinted at profit booking ahead.
Here s breaking down the pre-market actions:
STATE OF THE MARKETS
Nifty futures on the Singapore Exchange traded 205 points, or 1.37 per cent, lower at 14,783.50, signalling that Dalal Street was headed for a gap-down start on Tuesday.
Tech View: Nifty likely to see profit booking
Nifty50 formed a bullish Doji kind of candle on Monday, indicating indecisiveness among investors. The trading range was narrower than the previous session, which is likely a hint of a slowdown in the upward journey as well as profit taking. Analysts advised traders to avoid Nifty trades for the time being, considering the narrow trading range, and shift focus to stock-specific opportunities.
Ahead of Market: 12 things that will decide stock action on Tuesday
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Synopsis The new short-term range for the index will be in the 14,200-14,700 range, said Gaurav Ratnaparkhi of Sharekhan.
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NEW DELHI: Nifty saw a gap-down opening on Monday and witnessed deep sell-off in the intraday trade. The headline index formed a Long Black Day candle on the daily chart. Nifty has approached a trendline drawn from the previous crucial swing lows. All these parameters offered some support to the index. These parameters are in the 14,200-14,300 range. Unless this range is broken on a closing basis, the index can still stay in a consolidation phase. The new short-term range for the index will be in the 14,200-14,700 range, said Gaurav Ratnaparkhi of Sharekhan.
Ahead of Market: 12 things that will decide stock action on Monday
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Momentum indicator ACD on Thursday showed a bullish trade setup on counters such as JSW Energy, Firstsource Solution, UPL and Sun Pharma.
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On the weekly scale, the headline index formed a large bullish candle for the week gone by.
NEW DELHI: The Nifty 50 index staged a rebound on Friday after a hiccup in the previous session and formed a bullish candle on the daily chart with a long lower shadow.
“The rally in the domestic market was led by positive cues from global peers, strong buying in metal stocks and recovery in the banking sector. Metal stocks outshone other sectoral indices on reports of a possible price hike. PSU banks were also in focus today as the government announced capital infusion of Rs 14,500 crore in four PSU banks,” said Vinod Nair, Head of Research at Geojit Financial Services.
NEW DELHI: Nifty Pharma index was trading with losses at 01:50PM (IST) on Wednesday. Shares of Lupin (down 2.42 per cent), Cipla (down 2.06 per cent), Sun Pharma (down 2.0 per cent), Dr Reddy s Laboratories (down 1.77 per cent) and Cadila Healthcare (down 1.6 per cent) were the top losers in the index. While Aurobindo Pharma (up 0.78 per cent) were among the top gainers. The Nifty Pharma index was trading 1.3 per cent down at 11856.4 around 01:50PM. Benchmark NSE Nifty50 index was down 88.60 points at 14821.85, while the BSE Sensex was down 228.83 points at 50135.13. Among the 50 stocks in the Nifty index, 7 were trading in the green, while 43 were in the red.