Ahead of Market: 10 things that will decide stock action on Tuesday
Nifty50 and Sensex ended lower on Monday as weak earnings and renewed profit-booking offset a post-results rally in top private lender HDFC Bank.
The Nifty50 fell 0.29% to 24,781, while the BSE Sensex closed 0.09% lower at 81,151. Both indices fluctuated between early gains of around 0.4% and a midday decline of nearly 0.7%, before staging a partial recovery.
Here's how analysts read the market pulse:
«Nifty remained volatile throughout the day as traders were uncertain about the market direction. On the higher end, it found resistance at the 50EMA on the daily time frame. Additionally, the index failed to move beyond 25000, which led to selling pressure that pushed it down to 24700. If Nifty falls below 24700, the selling pressure may intensify. However, if it holds above 24700, a smart recovery toward 25050 could be expected,» said Rupak De of LKP Securities.
Jatin Gedia of Sharekhan, said, «Nifty witnessed selling pressure from the 25000 mark which coincides with high concentration of open interest on the call side implying resistance. On the downside the 20 week average (24730) which was defended well last week is being tested again. So there is a standoff between bulls and bears leading to heightened volatility. Overall, we expect a rangebound price action in the range 24500 – 25200 from short term perspective.»
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