According to Ashis Biswas, Head of Technical Research at CapitalVia Global Research Ltd- IA, “As Nifty has sustained over the crucial level of 13,750, one can expect the volatility to expand, which could lead to an upside projection till the levels of 13,990.”
“Indian market started on an upbeat note in the final week of the year owing to positive global cues. We can expect the momentum to be maintained as investors are focusing more on the positive side of events and are not worried about the peak valuations and lockdowns triggered by the new strain of virus,” said Vinod Nair, Head of Research at Geojit Financial Services.
That said, here’s a look at what some of the key indicators are suggesting for Tuesday’s action:
US stocks rise as Trump signs fiscal aid bill
Wall Street’s main indexes hit record highs on Monday as President Donald Trump’s signing of a long-awaited $2.3 trillion pandemic aid bill bolstered bets on an economic recovery, helping financial and energy stocks. The Dow Jones Industrial Average rose 305.4 points, or 1.01% to 30,505.81. The S&P 500 rose 31.0 points, or 0.86% to 3,734.80, while the Nasdaq Composite rose 49.9 points, or 0.38%, to 12,853.95.
European shares cheer post-Brexit trade deal
European shares climbed on Monday for a fourth straight session as relief over long-awaited U.S. economic stimulus and a post-Brexit trade deal lifted investor mood in thin holiday trading. The benchmark European stock index jumped 0.73% to its highest since Feb. 26, with automakers and energy stocks gaining the most.
Tech View: Nifty50 eyes 14,000 level
Nifty50 rose for the fourth straight session on Monday. The index formed a small bullish candle on the daily chart and continued to form higher highs and lows for the third session in a row. The index can now attempt to take out the 14,000 level in the short term, said analysts, who believe holding above the 13,750 level is key for further upside. “The index needs to hold above the 13,750-13,777 range to see a fresh rally towards a new lifetime high of 14,000. On the downside, major support exists at 13,700 and 13,600 levels,” said Chandan Taparia of Motilal Oswal Securities.
Check out the candlestick formations in the latest trading sessions
F&O: VIX stability supporting bullish market setup
India VIX moved up 2.77% from 19.96 to 20.42 levels. Stability in volatility is supporting the bullish market setup. VIX needs to hold below 19 level to help the bulls continue their grip on the market. . There was Call writing at 14,500 and then 14,200 levels, while meaningful Put writing was seen at 13,800 and then 13,700 levels. Options data suggested an immediate trading range between 13,700 and 14,100 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Monday showed bullish trade setup on the counters of Vodafone Idea, Indiabulls Housing Finance, Bharti Airtel, Jindal Stainless, SBI Life Insurance, Godrej Properties, Titan Company, NOCIL, HEG, CESC Ventures, TD Power Systems, Sunteck Realty, Dhanuka Agritech, Sterlite Technologies, Sobha, Orient Refractories, La Opala RG, Quick Heal Technologies, Nilkamal, Lokesh Machines, Kansai Nerolac Paint, Tata Communications, Vaibhav Global, TV Today Network, Lux Industries, Lyka Labs, Caplin Point Lab, PSP Projects, NACL Industries, IFGL Refractories, Ganesha Ecosphere and Praxis Home Retail.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Hindustan Construction Company, Shree Renuka Sugars, Suven Life Sciences, Uttam Galva Steels, Deepak Nitrite, Sical Logistics, HDFC AMC, Godrej Agrovet, Garden Silk Mill, Anik Industries, Goldstone Technologies, Akash Infra-Projects, Bharat Gears, Asian Hotels (North), Asian Hotels (East), India Motor Part and W S Industries.
Monday’s most active stocks
Tata Motors (Rs 1807.34 crore), RIL (Rs 1594.88 crore), Bajaj Finance (Rs 1008.30 crore), SBI (Rs 1003.72 crore), HDFC Bank (Rs 827.38 crore), ICICI Bank (Rs 749.90 crore), Sun Pharma (Rs 725.93 crore), Mrs. Bectors Food Specialities (Rs 712.89 crore), Adani Enterprises (Rs 679.26 crore) and Bharti Airtel (Rs 672.92 crore) were among the most active stocks on Dalal Street on Monday in value terms.
Monday’s most active stocks in volume terms
Vodafone Idea (Shares traded: 25.47 crore), YES Bank (Shares traded: 14.91 crore), PNB (Shares traded: 14.60 crore), Tata Motors (Shares traded: 9.80 crore), 3i Infotech (Shares traded: 9.69 crore), RattanIndia Power (Shares traded: 5.26 crore), SAIL (Shares traded: 5.09 crore), JP Power (Shares traded: 4.29 crore), BHEL (Shares traded: 4.11 crore) and Vedanta (Shares traded: 3.83 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Firstsource Solution, IndiabullsVentures (PP), Carborundum Universal, APL Apollo Tube and SAIL witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Monday signalling bullish sentiment.
Stocks seeing selling pressure
Fairchem Organics, Jump Networks, Ravinder Heights, Anant Raj Global witnessed strong selling pressure in Monday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favour the bulls
Overall, market breadth remained in favour of bulls. As many as 390 stocks on the BSE 500 index settled the day in green, while 108 settled the day in red.
Podcast: Will realty stocks be worth it in 2021? >>>
Stock investors made Rs 1.8 lakh crore today as the bull run continued non-stop for the fourth consecutive day. Both Sensex and Nifty scaled new highs with financials leading the charge. With such exuberance in the market, the question is what’s next is in store for investors? Will the party continue in 2021? To discuss this and more, we caught up with Ajit Mishra, VP – Research, Religare Broking.