Ahead of Market: 10 things that will decide stock action on Tuesday
Nifty 50 closed higher for a thirteenth consecutive session on Monday, its longest-ever rally, led by gains in IT stocks on hopes of a U.S. rate cut and as shares of consumer goods companies rose on a prediction of good monsoon rains.
The benchmark Nifty 50 index ended 0.17% higher at 25,278 points and the BSE S&P Sensex rose 0.24% to settle at 82,559. Both hit all-time highs.
Here's how analysts read the market pulse:
«The Nifty failed to surpass the opening high after a positive start. Heavy call writing was observed at the 25,300 strike, and overall, call writers significantly outnumbered put writers throughout the day. In the near term, the trend might remain sideways to negative as long as it stays below 25,300. On the lower end, however, the correction may be limited to 25,000, where significant put writing has been observed,» said Rupak De of LKP Securities.
Jatin Gedia, Technical Research Analyst at Sharekhan, said, «Sectoral rotation is helping Nifty to stay at elevated levels. We shall continue to ride the up move. On the upside, we expect Nifty to target levels of 25,500. On the downside, the crucial support base is placed at 25210 – 25120 where the key hourly moving averages are placed. We shall continue to ride the up move with a trailing stop loss mechanism.»
That said, here’s a look at what some key indicators are suggesting for Tuesday's action:
US market:
The US markets were closed today on account of Labor Day.
Tech View: Small negative candle
Nifty ended Monday’s session with a gain of 43
