Ahead of Market: 10 things that will decide D-Street action on Wednesday
Here's how analysts read the market pulse:
«A bearish candle has emerged on the daily Nifty chart, indicating a potential bearish trend in the near future. Sentiment is expected to stay bearish as long as it remains below 21,750. Any upward movement toward 21,750 could encounter selling pressure. However, a clear breakout above 21,750 could shift sentiment in favor of the bulls. Support is established at 21,500 on the lower end,» said Rupak De, Senior Technical Analyst at LKP Securities.
Ajit Mishra of Religare Broking, said, «The underperformance of the banking majors is largely weighing on the sentiment amid consolidation, and a decisive close above 21,800 in Nifty would prompt the next leg of the up move. Meanwhile, we feel it is prudent to prefer defensive viz. FMCG, pharma and stay selective in others.»
That said, here’s a look at what some key indicators are suggesting for Wednesday's action:
US market
Wall Street is starting 2024 weakly on Tuesday and giving back some of its powerful gains from the year before.
The S&P 500 was 0.7% lower in morning trading after pulling to the brink of its all-time high set roughly two years ago. The Dow Jones Industrial Average was down 56 points, or 0.1%, as of 9:50 a.m. Eastern time, and the Nasdaq composite was 1.5% lower.
European shares
Europe's benchmark stock index erased its initial gains and slipped on Tuesday, led by technology and chemicals, as traders bid adieu to an upbeat 2023 that was fuelled by expectations of nearing interest rate cuts.
The pan-European STOXX 600 was down 0.5% by 1320 GMT, coming off the 23-month high hit intraday, with euro zone government bond yields also on the rise.
Tech View: Reasonable negative candle
Nifty on Tuesday ended 76
Read more on economictimes.indiatimes.com
