The BSE benchmark Sensex climbed 241 points or 0.37% to settle at 65,628.14. The Nifty rose 93.50 points to end at 19,528.80.
Sectorally, metal, IT, and PSU Bank stocks took the lead, while only FMCG and Consumer Durable indices ended in the red.
Here’s how analysts read the market pulse:
“Recent releases of domestic macroeconomic data have portrayed a positive picture for the domestic markets, allowing them to maintain their momentum. Despite profit-booking in Nifty Auto after reaching an all-time high, the market regained its footing with robust buying in IT stocks. The increase in the US unemployment rate has solidified expectations of a pause in rate hikes, and positive global cues have further boosted market sentiment,” Vinod Nair, Head of Research at Geojit Financial Services, said.
“On the daily charts, we can observe that the Nifty is stretching on the upside. The intraday dip was bought into, which indicates buying interest at supports and also suggests bullishness. We believe that the Nifty is in the process of retracing the fall it has witnessed from 19992 – 19223 and hence the pullback is likely to last over the next few trading sessions. On the upside, we expect the Nifty to target levels of 19650. In terms of levels, the crucial support zone is placed at 19420 – 19360, and the immediate hurdle is placed at 19650 – 19700,” Jatin Gedia, Sharekhan, said.
That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:
The US stock markets remained shut on Monday on account of the Labor Day holiday.
European shares rose on Monday, echoing an upbeat mood in Asia as investors were optimistic that a series of stimulus from China will support its slowing economy, while drugmaker Novo Nordisk’s shares hit a fresh record high.
The pan-European STOXX 600 index rose 0.6% by 0720 GMT, following a three-session losing run. Miners rose 1.3%, leading gains among European sectors, as iron ore futures rallied amid optimism over top steel producer China’s policy support for its struggling property sector.
Tech View: Small positive candle
A small positive candle with a long lower shadow was formed on the daily charts. Having formed such a pattern after one session of rise, one may expect less impact on the negative side for the market for the short term, said Nagaraj Shetti of HDFC Securities.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Central Bank, UCO Bank, NTPC, Wipro, and HDFC Bank among others.
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 Jain Irrigation, Berger Paints, Usha Martin, DB Realty, and Trent among others. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
MRF (Rs 108150 crore), Page Industries (Rs 39773 crore), Honeywell Automation (Rs 39334 crore), 3M India (Rs 32149 crore), and Shree Cements (Rs 25299 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 the highest trading turnovers in the day.
Most active stocks in volume terms
YES Bank (Shares traded: 77.65 crores), IRFC (Shares traded: 50.42 crore), JP Power (Shares traded: 29.21 crores), and Vodafone Idea (Shares traded: 28.62 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of MMTC, IRFC, RVNL, Nazara Technologies, and Bank of Maharashtra among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure
Shares of CMI, Atam Valves, Penta Gold, Sanco Industries, and Allcargo Terminals were among other stocks that hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bulls
Overall, the market breadth favored bulls as 2,297 stocks ended in the green, while 1,462 names settled in the red.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)