Ahead of Market: 10 things that will decide D-Street action on Wednesday
The Nifty 50 index lost 0.42% to 22,004 but ended above 22,000 for the fourteenth session out of 17 this month. The BSE Sensex shed 0.50% to close at 72,470.
Here's how analysts read the market pulse:
«Nifty has been oscillating within a range defined by the 20 and 50-day EMA since last week. A breakout from this range will likely dictate the next directional move. As of now, with no major traction, prices are expected to remain within this range. Consequently, it is advisable to adopt a cautious approach, focusing on buying on dips and exiting long positions on rallies while the range persists. Immediate support levels are seen at 21,900-21,850, while 21,700 is a key support level. On the upside, resistance is anticipated around 22,200-22,250,» said Rajesh Bhosale of Angel One.
Tejas Shah, technical research analyst at JM Financial & BlinkX, said, «For the last many days, Nifty has been stuck within the 21,800-22,200 zone. There have been many attempts both by the bulls and bears to trigger a breakout but both have been unsuccessful so far. It seems only on a close above the resistance zone of 22,200-250 will the bulls be in complete control of the set-up. Till then one will have to be very stock-specific and look at long trades in some of the outperforming stocks/sectors only.»
That said, here’s a look at what some key indicators are suggesting for Wednesday's action:
US market
Wall Street's main stock indexes climbed on Tuesday as most megacap growth stocks and chipmakers advanced, while investors
