Ahead of the Market: 10 Things That Will Decide Friday’s D-Street Action
The NSE Nifty 50 index was trading 0.13 per cent higher at 21,647 points and the S&P BSE Sensex was trading 0.09 per cent higher at 71,721 points.
Here’s how analysts read the market pulse.
“Nifty faced selling pressure within the range of 21,700-21,750, but remained above the 10-day moving average, confirming stability and ending the session on a positive note. Currently, immediate support for Nifty has moved to 21,600, with 21,730 acting as resistance. Broad position support for Nifty remains at 21,500,” said Kunal Shah, senior technical and derivatives analyst at LKP Securities.
“From a technical perspective, an aggressive upside target for Nifty still appears at the psychological 22,000 level, while confirmation of strength lies only above the 21,836 level,” said Prashanth Tapse, Senior Vice President (Research), Mehta Equities.
That said, let’s take a look at some key indicators that suggest action on Friday.
american market
Wall Street’s main indexes struggled for direction on Thursday as hotter-than-expected inflation dampened hopes of an early interest rate cut and U.S. regulatory approval for an exchange-traded fund (ETF) tracking Bitcoin boosted cryptocurrency stocks.
The benchmark S&P 500 briefly surpassed its all-time high of 4,796.56 hit in January 2022 before erasing opening gains.
The index has recovered nearly 17% from its October low and picked up steam again after the Federal Reserve in December hinted that inflation would be reined in and a rate cut was “in sight.”
At 9:47 a.m. ET, the Dow Jones Industrial Average fell 27.71 points (0.07%) to 37,668.02, the S&P 500 Index rose 1.99 points (0.04%) to 4,785.44, and the Nasdaq Composite Index rose 30.36 points (0.20%). has risen. %, 15,000.01.
european stocks
European stocks rose on Thursday, helped by gains in auto and technology stocks, while investors waited for clearer U.S. inflation data on the trajectory of interest rate cuts from the Federal Reserve and other major central banks.
The pan-European STOXX 600 index was up 0.5% by 0921 GMT.
Tech View: Small Negative Candle
On Thursday, Nifty closed 28.5 points higher but formed a small negative candle with a slightly lower shadow on the daily chart, indicating a range-out move below the immediate resistance line.
The market is currently at a hurdle on the downward trend line connecting the recent lower highs of the 21,725 level. Nifty, which showed a false downward breakout of the 21,500 level on Wednesday, is expected to touch the upper orbit of 21,750-21,850 levels in the near term. A clear break above the 21,850 hurdle could lead to rapid upward momentum. Immediate support lies at 21,590 levels, said Nagaraj Shetti of HDFC Securities.
Stocks with a bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on counters including PNC Infratech, Rail Vikas Nigam, CCL Products, Rites, APL Apollo Tube and Phillip Carbon.
MACD is known to indicate a trend reversal in a traded security or index. When the MACD crosses above the signal line, it sends a bullish signal, indicating that the price of the security may rise and vice versa.
Stocks predict weakness ahead
MACD showed signs of weakness on the counters Gujarat Pipavav, Jamna Auto, Aditya Birla Retail, Rashtriya Chemicals, HUDCO and Gujarat Alkalies & Chemicals. A bearish crossover in the MACD of this counter indicates that it has just begun its downward journey.
Most Active Stocks by Value
RIL (Rs 3,197 crore), Infosys (Rs 1,693 crore), HDFC Bank (Rs 1,513 crore), Maruti Suzuki (Rs 1,030 crore), SBI (Rs 965 crore), Hero MotoCorp (Rs 918 crore) and Tata Motors (Rs 918 crore). (crore) 901 crore) was one of the most active stocks on NSE in terms of value. The higher activity of a counter in terms of value can help identify which counters have the highest turnover for the day.
Most active stocks by trading volume
Tata Steel (Shares traded: 2.3 billion), Power Grid (Shares traded: 1.8 billion), SBI (Shares traded: 1.5 billion), ONGC (Shares traded: 1.2 billion), RIL (Shares traded: 1.2 billion) ), Infosys (stocks traded: $1.1 billion), Tata Motors (shares traded: $1.1 billion) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks of Hero MotoCorp, Apollo Hospital, IndusInd Bank, Tata Motors, Bharti Airtel and Cipla saw strong buying interest from market participants as they touched new 52-week highs, indicating bullish sentiment.
Stocks under selling pressure
No major stocks hit new 52-week lows on Thursday.
Sentiment Meter Favors Bulls
Overall, market breadth favored the bulls. 2,317 stocks closed in the green and 1,522 stocks closed in the red.
(Subscribe to ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
