Ahead of the Market: 10 Things That Will Decide Friday’s D-Street Action
After remaining volatile for most of the session, the benchmark index rebounded in the final hour of trading amid positive global clues, including improving domestic macroeconomic indicators and impressive gains in the U.S. technology sector.
The 30-week benchmark Sensex surged 535 points, or 0.74%, to close at 73,158.24 points. The broader Nifty rose 162.40 points, or 0.74 per cent, to its highest close ever at 22,217.45 points.
Here’s how analysts read the market pulse.
“On the daily chart, we can see that Nifty has found support in the 21,890 – 21,840 area, which is consistent with the 50% Fibonacci retracement level (21,890) and the 20-day moving average (21,838). For the bulls, the immediate hurdle lies at 22,460 – 22,500, with the downside likely Today’s low (21,875) will act as an important support level from a near-term perspective,” said Jatin Gedia of Sharekhan.
Rupak De of LKP Securities said, “The market remained highly volatile due to weekly expiration of Nifty options. At the lower end, it bounced higher after finding support at 21EMA. Momentum indicators experienced a bullish crossover.” . Sentiment has once again turned positive and is likely to reach 22,400/22,600 in the near term. At the bottom, support is at 22,100.”That said, let’s take a look at some key indicators that suggest action on Friday.
american market
The benchmark S&P 500 index briefly hit a new record on Thursday after outstanding results and forecasts from Nvidia sparked this year’s artificial intelligence-led rally.
As of 9:42 a.m. ET, the S&P 500 was up 1.31% at 5,047.07, after hitting an intraday high of 5,051.37 in early trading.
Eight of the 11 major sectors in the S&P 500 posted early gains, with technology stocks leading the gains, rising 3.8%.
The Dow Jones Industrial Average was trading at 38,839.0, up 226.78 points (0.59%), and the Nasdaq Composite Index, centered on technology stocks, was trading at 15,913.37, up 332.50 points (2.13%).
european stocks
European stocks hit record highs on Thursday, helped by a rebound in global markets and Japan’s blue-chip Nikkei index hitting a new all-time high.
Europe’s STOXX 600 index rose to 495.77 points, surpassing the 495.46 points reached in January 2022. This is because US chip giant Nvidia’s unexpectedly strong profit outlook has boosted sentiment around the world.
The European benchmark rose almost 1% on the day and is up almost 4% this year, following a rise of just over 10% last year.
Tech View: Long candle
Nifty rose 162 points on Thursday as the short-term trend of Nifty rose sharply after a slight decline, forming a long bullish candle with a long lower shadow on the daily chart.
Nifty, which recently touched a high of 22,249, is expected to move towards the next upside target of 22,500-22,600 levels within a week. Immediate support is at 22,050, said Nagaraj Shetti of HDFC Securities.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading, especially on counters Tata Investment, MTAR Technologies, Sterlite Technologies, Glenmark Pharma, Rossari Biotech and Crompton Greaves Consumer Electricals.
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 across counters including HCL Tech, Coal India, Chalet Hotels, Oracle Financial Services Software, GMR Infra and UCO Bank. A bearish crossover appears on the MACD of this counter, indicating that the downtrend has just begun.
Most Active Stocks by Value
HDFC Bank (Rs 3,589 crore), RIL (Rs 2,723 crore), Axis Bank (Rs 1,608 crore), SBI (Rs 1,436 crore), ICICI Bank (Rs 1,416 crore), TCS (Rs 1,203 crore) and Kotak Mahindra Bank (Rs 1,067 crore) was one of the most active stocks on the 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: 4.6 billion), Power Grid (shares traded: 2.7 billion), HDFC Bank (shares traded: 2.5 billion), Coal India (shares traded: 2.2 billion), SBI (shares traded: 1.9 billion), ITC (Shares traded: 1.8 crore) and ONGC (Shares traded: 1.6 crore) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks such as M&M, Maruti Suzuki, ICICI Bank, Sun Pharma, Grasim Industries and Apollo Hospital saw strong buying interest from market participants as they touched new 52-week highs, indicating bullish sentiment.
Stocks under selling pressure
Shares of Whirlpool India and Polyplex Corporation hit 52-week lows, signaling bearish sentiment in the market.
Sentiment Meter Favors Bulls
Overall, market breadth favored the bulls, with 2,012 stocks closing in the green and 1,815 stocks closing lower.
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
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