Ahead of Market: 10 things that will decide stock action on Tuesday
The Nifty 50 closed 0.15% lower at 22442.70 points. However, the 30-member S&P BSE Sensex edged 0.02% higher to 73,895.54 as the drop in state-run banks was offset by gains in IT stocks and Kotak Mahindra Bank.
Here's how analysts read the market pulse:
«The strategy to trade in Nifty would be to sell in case the low of 22348 if breached on the downside or if the Nifty bounces towards 22570 – 22620 zone. Under both scenarios we are expecting very limited upside as the Nifty is unable to sustain at higher levels. A stop loss of 22700 should be maintained for the short positions. Targets on the downside are 22280,» said Jatin Gedia of Sharekhan.
Shrikant Chouhan, Kotak Securities, said, «We are of the view that the short-term market texture is still on the weak side and for the traders now, 22600/74400 would act as a trend decider level. As long as the market is trading below the same, the chances of hitting 22300-22250/73500-73350 would turn bright. On the flip side, above 22600/74400 the sentiment could change. Above 22600/74400, the market could bounce back till 22700-22735/74700-74800.»
That said, here’s a look at what some key indicators are suggesting for Tuesday's action:
US market
U.S. stock indexes extended last week's gains on Monday as investors saw a greater chance of the Federal Reserve cutting interest rates this year following softer-than-expected payrolls data on Friday.
The benchmark S&P 500 and the tech-heavy Nasdaq were trading at three-week highs after data on Friday showed U.S. job growth
