Indian shares saw profit booking at higher levels ahead of key US inflation data scheduled on Wednesday. Analysts said concerns have emerged amidst recent better-than-anticipated US employment and manufacturing data, suggesting a potential shift in expectations regarding rate cuts this year.

Here’s how analysts read the market pulse:

“On the hourly chart, the RSI (14) indicates bearish divergence, signaling a potential shift in price momentum towards the downside. Immediate support is observed at 22,600; a decisive drop below this level could drive the index towards 22,400. Conversely, resistance is evident at 22,770 on the higher end,” said Rupak De, Senior Technical Analyst, LKP Securities.

That said, here’s a look at what some key indicators are suggesting for Monday’s action:

US stocks rise

Wall Street’s main stock indexes gained today supported by retreating Treasury yields, while investors awaited a key inflation print later in the week that could help shape the Federal Reserve’s stance on interest-rate cuts this year.

The focus will be on the March reading of the U.S. Consumer Price Index (CPI), due on Wednesday, that is expected to show a rise in headline inflation to 3.4% year-on-year, from 3.2% in February.

European shares dip

European shares slipped today ahead of this week’s U.S. inflation data and a European Central Bank monetary policy decision, while diagnostics firm Biomerieux was set for its best day in more than two years on a new strategic plan.

The pan-European STOXX 600 index was down 0.2%, as of 0838 GMT, after notching its strongest session in more than two weeks on Monday.

Tech View

“The hourly momentum indicator has triggered a negative crossover which is sign of loss of momentum. Thus, we can expect some consolidation though the overall trend is still positive, and we expect the dips towards 22600 – 22580 to be bought into,” Jatin Gedia – Technical Research Analyst at Sharekhan.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on ABB Power, Jai Balaji Industries, P&G Health, Tata Chemicals, LTI Mindtree and ICICI Lombard.

The MACD is known for signaling trend reversals in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa.

Stocks signaling weakness ahead

The MACD showed bearish signs on the counters of Bata India, Bajaj Auto, Jindal Stainless, Archean Chemical, Tube Investments, and Colgate-Palmolive among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms

HDFC Bank (Rs 1,693 crore), Infosys (Rs 1,414 crore), ICICI Bank (Rs 1,107 crore), Axis Bank (Rs 1,360 crore), Tata Steel (Rs 1070 crore), RIL (Rs 1040 crore) among others were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.

Most active stocks in volume terms

Tata Steel (Shares traded: 6.3 crore), ONGC (Shares traded: 1.3 crore), ICICI Bank (Shares traded: 1.2 crore), Axis Bank (Shares traded: 1.1 crore), HDFC Bank (Shares traded: 1 crore) among others were among the most traded stocks in the session on NSE.

Stocks showing buying interest

Shares of ICICI Bank, M&M, NTPC, Tata Steel, Shriram Finance among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure

No hit their 52-week low on Tuesday.

Sentiment meter favours bulls

Overall, market breadth favoured bears as 1,554 stocks ended in the green, while 2,288 names settled in the red.


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