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

Indian equity benchmarks fell on Monday amid a volatile session, dragged by index heavyweight Reliance Industries, HDFC twins (HDFC and HDFC Bank) and Axis Bank. The 30-share BSE Sensex pack slipped 168 points or 0.28 per cent to close at 60,093 today, while the broader NSE Nifty index moved 62 points or 0.34 per cent down to finish at 17,895. On the sectoral front, metals, financials and automobile stocks took a sharp beating. Continued foreign investor selling and higher oil prices weighed on investor sentiment.

Also, subdued Q3 results, soft budget expectations and cliffing of global rates impacted the future market trend, said Vinod Nair, Head of Research at Geojit Financial Services.

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

Nifty Outlook

"Nifty failed to sustain above 18,000 and slipped lower before closing around 17,900. A 'dark cloud cover'-like pattern has formed on the daily chart, suggesting a near-term weakness. Support on the lower end is visible at 17,850/17,750. Below 17,750, Nifty may witness a meaningful correction. On the higher end, resistance is visible at 18,000–18,100," said Rupak De, Senior Technical Analyst at LKP Securities.

Nifty Bank Outlook

"Nifty Bank continued to witness downward pressure from higher levels and failed to hold the level of 42,500. The index is still in a sell-on-rise mode, and if it breaks through the 42,000-support level, we will see additional selling pressure toward the 41,700–41,500 zone," said Kunal Shah, Senior Technical Analyst at LKP Securities.

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

"For Nifty, on the call side, the highest OI witnessed at 18,000 followed by 18,100 levels, while on the put side, the highest OI was at 17,800 strike. Nifty Bank has support at 41,500 levels while resistance is placed at 42,800. The outflow of capital from FIIs has been a source of concern for investors in the short term. Economic data, ongoing quarterly earnings, and foreign fund trading activity will all determine the path that investors choose for Indian equities this week," said Ameya Ranadive, Equity Research Analyst at Choice Broking.

Nifty Bank Tech Charts

"Nifty Bank opened on a positive note but nosedived to 42,066 zones during the day. It remained weak for the entire session and closed with losses of around 200 points. It formed a Bearish candle on a daily scale but has been making higher highs - higher lows from the last three sessions. Now it has to hold above 42,000 zone for an up move towards 42,500 and 42,750 zones, whereas supports are placed at 42,000 then 41,750 zones," said Chandan Taparia of Motilal Oswal Securities.

Futures Data

"Nifty future closed negative with losses of 0.46 per cent at 17,941 levels. Positive setup in PNB, IDFC, L&T Financial Holdings, Federal Bank, Tech Mahindra, Infosys, BEL, REC, HCL Tech, UltraTech Cement, IDFC First Bank, Wipro, Godrej Consumer Products and ONGC, while weakness in PVR, Astral, Aarti Ind, Dixon, Axis Bank, Apollo Hospital and Adani Enterprises," Taparia said.

European Stocks

European stock indices such as the German DAX, Euro Stoxx 50 and France's CAC were seen trading higher. Spain's IBEX 35, however, declined. Further, US stock futures indicated a muted start for Wall Street.

Most Active Stocks

PNB, Yes Bank, Bank of Maharashtra, Indian Overseas Bank, Vodafone Idea, UCO Bank, Federal Bank, L&T Financial Holdings, Suzlon and Lloyds Steels Industries were the most active stocks on NSE, in terms of volume.

Oil Prices

Oil prices held near this year's highs. Higher oil prices hurt oil-importing countries like India, where crude constitutes the bulk of the country's import bill.

52-Week High/Low

120 stocks touched their respective 52-week high today on BSE, while 47 hit their one-year lows. BSE 500 stocks such as CG Power and Industrial Solutions, Edelweiss Financial Services and Federal Bank were among the stocks that hit their one-year high levels today, while Gland Pharma, Laurus Labs, Nykaa and Voda Idea were those which touched their 52-week lows.

Market Breadth

Out of 3,778 stocks, 1,993 stocks declined while 1,619 stocks advanced. 166 stocks remained unchanged today.

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