Ahead of the Market: 10 Things That Will Decide Saturday’s D-Street Action
On the day, Nifty50 closed at 22,339, up 1.62%, breaking its 11th session high of 2024. Sensex also hit an all-time high, rising 1.72 per cent to 73,745.
The rally comes after India’s economy grew 8.4% in the October-December quarter, the fastest pace in six quarters, according to data released on Thursday.
Here’s how analysts read the market pulse.
“On the daily chart, we can see that Nifty has broken out of the Running Triangle pattern, which indicates the start of a new uptrend. The daily Bollinger Bands have started to expand and the price is trading along the upper band, indicating that the following could happen: A sharp upward trend move. We expect Nifty to target 23000 – 23100 levels in the near term. On the downside, the 21900 – 21860 area will now act as an important support zone and any violation below will lead to a trend. It’s a twist,” said Jatin Gedia of Sharekhan.
“Nifty closed above the important resistance zone of 22,250-300 on a weekly close and we believe the rally will continue as long as Nifty remains above 22,000,” said Tejas Shah, technical researcher at JM Financial & BlinkX. If we continue, we could immediately test the next resistance area of 22,450-500 and eventually Nifty could test the 22,700 level on the higher side.”
That said, let’s take a look at some key indicators that suggest action on Saturday.
us stocks
U.S. stocks struggled to find direction on Friday as investors took a breather after the previous session’s rally due to inflation figures that strengthened the likelihood of a rate cut by June and the ongoing artificial intelligence frenzy.
The tech-heavy Nasdaq closed at a record high on Thursday, helped by gains in AI-related stocks including heavyweight chip designer Nvidia and rival Advanced Micro Devices.
At 9:43 a.m. ET, the Dow Jones Industrial Average fell 59.09 points (0.15%) to 38,937.30, the S&P 500 Index rose 2.93 points (0.06%) to 5,099.20, and the Nasdaq Composite Index rose 33.66 points (0.21%). has risen. %, 16,125.58.
The S&P 500 Energy sector was the best performer among sectors, rising 1.1% as crude oil prices rose. “Now that the PCE (report) is over, investors may be willing to sit on the sidelines for a bit today,” said Paul Nolte, senior wealth advisor and market strategist at Murphy & Sylvest.
european stocks
European stocks started the month higher on Friday, boosted by favorable U.S. inflation data and stronger global stocks following upbeat earnings, while investors looked to euro zone inflation data for fresh clues about easing monetary policy.
The pan-European STOXX 600 index was up 0.5% by 9:34 GMT, hitting a record high, tracking strength in global stocks. But the benchmark index continued its first weekly decline in six months.
Germany’s DAX index rose 0.6%, hitting a record high for the seventh time in a row.
The European technology index rose 0.8%, supported by gains in AI-related technology stocks globally.
Tech View: Bullish Marubozu Candle
Nifty on Friday closed the first trading session of the March series at a new high, 366 points above the 22,300 level and forming a bullish Marubozu candle on the charts.
“The index has broken out of a two-month flat range, and this contraction in volatility usually leads to a strong rally. The 61.8% Fibonacci forecast level at which the Nifty rally began since October is 23,200. If this breakout continues, a quick march towards 23,000 can be expected. The demand zone has now moved upwards to 22,200-22,250, which is expected to act as support for Nifty,” said Sheersham Gupta, Director and Senior Technical Analyst, Rupeezy.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on counters Ingersoll-Rand, ZF Commercial Vehicle Control Systems, CE Info Systems, Coromandel International, Eris Lifesciences and Firstsource.
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 was down on the counters of Suven Pharma, Poly Medicure, Century Textiles, Tata Chemicals, Blue Star and Maruti Suzuki. 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 2,465 crore), Tata Steel (Rs 1,829 crore), RIL (Rs 1,799 crore), ICICI Bank (Rs 1,609 crore), L&T (Rs 1,584 crore), SBI (Rs 1,324 crore) and Infosys (Rs 1,062 crore). crore) has been 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: KRW 12.3 crore), HDFC Bank (Shares traded: KRW 1.7 billion), SBI (Shares traded: KRW 1.7 billion), Power Grid (Shares traded: KRW 1.5 billion), ICICI Bank (Shares traded: KRW 1.5 billion), NTPC (Shares traded: $1.3 billion) and ONGC (Shares traded: $1.3 billion) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Notably, stocks of Tata Steel, ICICI Bank, Grasim Industries, Tata Motors, RIL, M&M and Adani Enterprises witnessed strong buying interest from market participants as they touched new 52-week highs, indicating bullish sentiment.
Stocks under selling pressure
The stock prices of KRBL and Star Health hit 52-week lows, signaling bearish sentiment in the market.
Sentiment Meter Favors Bulls
Overall, market breadth favored the bulls, with 2,366 stocks closing in the green and 1,489 stocks ending in the red.
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
