Sensex, Nifty trade setup: 10 things you should know ahead of Tuesday's session

Indian equity benchmarks rebounded on Monday, halting their losing run of three straight sessions. The domestic equity benchmarks rose sharply today, led by gains in index heavyweights Reliance Industries, Infosys and Tata Consultancy Services (TCS). At closing, the 30-pack Sensex was up 847 points or 1.41 per cent at 60,747. The NSE benchmark moved 242 points or 1.35 per cent higher to settle at 18,101. On the sectoral front, technology, metals and state-owned lenders witnessed strong buying interest today. IT stocks traded higher today amid hopes of better corporate earnings for the third quarter (Q3) that ender on December 30, 2022. "IT emerged as the biggest gainer as the favourable US economy boosted sector optimism," said Vinod Nair, Head of Research at Geojit Financial Services.

That said, TCS kicked off the Q3 corporate earnings season on a positive note. The IT major reported an 11 per cent year-on-year (YoY) rise in profit at Rs 10,846 crore for the December quarter compared with Rs 9,769 crore in the same period a year ago.

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Here are 10 things you should know ahead of Tuesday's session:

Nifty Outlook

"After a three-day fall, the Nifty is finally back in the green, taking the index value above the crucial 18,000 mark. On the daily chart, the index is seen to have found support at the recent low of 17,774 before moving up. The momentum indicator RSI has entered a bullish crossover. The short-term trend looks sideways to positive as long as it remains above 17,770. On the higher end, resistance is visible in the 18,250–18,270 zone," said Rupak De, Senior Technical Analyst at LKP Securities.

Nifty Bank Outlook

"Nifty Bank experienced some buying momentum and held the support level of 42,000. The is stuck in a broad range between 42,000 and 43,000, and a break on either side will provide a clear direction. The index within the range remains in a buy-on-dip mode, indicating upside targets of 42,900/43,000," said Kunal Shah, Senior Technical Analyst at LKP Securities.

Nifty, Nifty Bank Call-Put Open Interest (OI)

"On the call side, the highest OI observed at 18,200, followed by 18,300 strike, while on the put side, the highest OI was at 18,000 strike. On the other hand, Nifty Bank has support at 42,000-42,100, while resistance is placed at 43,000-43200 range," said Ameya Ranadive, Equity Research Analyst, Choice Broking.

Nifty Bank Tech Charts

"Nifty Bank formed a Bearish candle on daily scale and has been making lower lows from the last three sessions. It formed a Bearish candle on weekly frame but respected its previous week's low. Now till it holds below 42,500, weakness may be seen towards 41,750 and 41,500 zones whereas hurdles are placed at 42,500 and 42,750 zones," said Chandan Taparia of Motilal Oswal Securities.

Futures Data

"Nifty future closed positive with gains of 1.22 per cent at 18,161 levels. Positive setup in L&T Finance Holdings, Persistent, M&M, HCL Tech, TCS, Hindustan Copper, Zydus Life, Wipro, National Aluminium Company, SBI Life, Bharti Airtel, Escorts, Ashok Leyland, Reliance, ACC, Cummins India, Tata Communications, Lupin, Jindal Steel, Axis Bank, HUL, Astral, M&M Finance, L&T and IDFC, while weakness in Trent, Titan, CUB, ABFRL, Grasim and LIC Housing Finance," Taparia said.

European Stocks

European stock indices such as the German DAX, Euro Stoxx 50 and France's CAC traded higher, while Spain's IBEX 35 was seen trading lower. Further, US stock futures indicated a gap-up start for Wall Street.

Most Active Stocks

Vodafone Idea, Yes Bank, Suzlon, IDBI Bank, PNB, PowerGrid, Indian Overseas Bank, Tata Steel, Zomato and IRFC were the most active stocks on NSE, in terms of volume.

Oil Prices

Oil prices rose around 3 per cent today, extending gains from the previous trading session. Higher oil prices hurt oil-importing countries like India, where crude constitutes the bulk of the country's import bill.

52-Week High/Low

149 stocks touched their respective 52-week high today on BSE, while 42 hit their one-year lows. BSE 500 stocks such as Abbott India, CG Power and Industrial Solutions, Godfrey Phillips and IDBI Bank hit their one-year high levels today, while Atul, Galaxy Surfactants and GlaxoSmithKline Pharmaceuticals were among those which touched their 52-week lows.

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Market Breadth

Out of 3,799 stocks, 2,009 stocks declined while 1,627 stocks advanced. 163 stocks remained unchanged today.