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

Indian equity benchmarks rose sharply on Monday, led by gains in Infosys, Tata Consultancy Services (TCS) and HDFC twins (HDFC and HDFC Bank). The 30-share BSE Sensex pack jumped 320 points or 0.53 per cent to close at 60,942 today, while the broader NSE Nifty index moved 91 points or 0.50 per cent up to finish at 18,119. On the sectoral front, technology, consumer, banks, financials and automobile stocks advanced. Continued foreign investor selling and higher oil prices weighed on investor sentiment.

Market breadth tilted in favour of bulls lifted by financial stocks, amid positive cues from global peers, said Vinod Nair, Head of Research at Geojit Financial Services. "Strong corporate earnings reported by banks boosted appetite for financial stocks. Positive global markets owing to the possibility of a less aggressive rate hike, further added colour," Nair mentioned.

Also Read | From below Rs 1 to over Rs 100: These 22 stocks have turned Rs 10,000 to over Rs 3 crore in 20 years

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

Nifty Outlook

"Nifty moved in a range after a gap-up start; at the end, a doji pattern was formed. The trend, however, remains positive for the short term, as the index has been sustaining above the 50-EMA (Exponential Moving Average) as well as the 200-DMA (Day Moving Average). The RSI (Relative Strength Index) is in a bullish crossover and rising. On the higher end, a directional move may be seen upon a close above 18,200; support on the lower end is seen at 17,950," said Rupak De, Senior Technical Analyst at LKP Securities.

Nifty Bank Outlook

"Nifty Bank witnessed a breakout above the resistance level of 42,700, and the index managed to hold the level on a closing basis. The index remains in buy-on-dip mode with immediate support at 42,400 levels, which should act as a cushion for the bulls. The immediate upside hurdle is visible at 43,000, where call writing is observed, and once cleared, we will see a sharp short covering on the upside," said Kunal Shah, Senior Technical Analyst at LKP Securities.

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

"On the option front, monthly maximum call OI is at 18,100, then at 18,200 strike, while maximum put OI is at 18,100, followed by 18,000 strike. Call writing is seen at 18,300, then at 18,200 strike, while put writing seen at 18,100, then at 18,000 strike. Option data suggests a trading range in between 17,900 to 18,300 zones, while an immediate trading range in between 18,000 to 18,250 zones," said Chandan Taparia of Motilal Oswal Securities.

Nifty Bank Tech Charts

"Nifty Bank opened positive with gains of around 400 points but failed to hold above 43,000 zones and remained consolidative in a range of 150 points between 42,725 to 42,865 zones for second half of the session. It formed a small bodied bearish candle on daily scale which indicates tug of war continue between Bulls and Bears with some outperformance. Now it has to hold above 42,700 zones for an up move towards 43,000 and 43,333 zones whereas supports are placed at 42,500 then 42,222 zones," Taparia said.

Futures Data

"Nifty future closed positive with gains of 0.53 per cent at 18,150 level. Positive setup in Coforge, Persistent, BSoft, India Mart, GAIL, PEL, TechM, Bharat Forge, UPL, MGL, SAIL, Petronet, Sun Pharma, Balkrishna Ind, TCS, IGL, Coal India and M&M, while weakness in Shree Cement, UltraTech Cement, Dalmia Bharat, Atul, Ambuja Cement, JK Cement, PI Ind, Ramco Cement, Grasim, ACC and JSW Steel," Taparia said.

European Stocks

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

Most Active Stocks

Yes Bank, Vodafone Idea, Infibeam Avenues, IDFC First Bank, Suzlon, PNB, IRFC, HCC, SAIL and Lloyds Steels Industries were the most active stocks on NSE, in terms of volume.

Oil Prices

Oil prices rose today to $88 a barrel, extending last week's gains. Higher oil prices hurt oil-importing countries like India, where crude constitutes the bulk of the country's import bill.

52-Week High/Low

141 stocks touched their respective 52-week high today on BSE, while 87 hit their one-year lows. BSE 500 stocks such as 360 One Wam, Adani Total Gas, Engineers India, IDFC and Jindal Stainless (Hisar) were among the stocks that hit their one-year high levels today, while Alok Industries, Atul, Balaji Amines and Biocon were among those which touched their 52-week lows.

Market Breadth

Out of 3,831 stocks, 1,608 stocks advanced while 2,045 stocks declined. 178 stocks remained unchanged today.

Also Read | ICICI Bank stock, analyst darling, has no 'sell' call. But should you buy it near all-time high level?