Ahead of the market: 10 things that will determine D-Street action on Thursday
The blue-chip NSE Nifty50 index was trading 0.34 per cent higher at 21,618, while the S&P BSE Sensex was up 0.38 per cent at 71,657. Both benchmarks fell about 0.5% each before reversing gains in the final hours.
Here’s how analysts read the market pulse.
“By retesting the double support of 21,470 and 21DMA, the index has formed a sharp candlestick pattern. This is bullish and indicates a resumption of the current uptrend. The 21,430-21,470 area acts as a strong support level while the immediate resistance is that of Progressive Shares. said Aditya Gaggar, Director.
“On the downside, the important support is located at 21,450-20,350 and the resistance is located at 21,700-21,800. Overall, the trend is positive and the current downturn should be viewed as a buying opportunity,” said Mandar Bhojane of Choice Broking.
That said, let’s take a look at some key indicators that suggest action on Thursday.
american market
The benchmark S&P 500 and the tech-laden Nasdaq hit nearly two-week highs Wednesday as falling Treasury yields boosted megacaps, while investors eagerly awaited inflation reports and earnings from major lenders later in the week.
Microsoft, Alphabet, Amazon.com and Meta Platform rose between 0.6% and 2.6% as U.S. Treasury yields eased, while the benchmark 10-year bond yield fell to 3.98%. Nvidia also rose 1.1% after TSMC, the world’s largest. Contract chip maker beat fourth-quarter revenue expectations.
At 9:45 a.m. ET, the Dow Jones Industrial Average rose 115.94 points (0.31%) to 37,641.10, the S&P 500 rose 12.16 points (0.26%) to 4,768.66, and the Nasdaq Composite Index rose 39.30 points (0.26%). has risen. %, 14,897.01.
european stocks
European stocks were lower on Wednesday due to falls in basic resources, while investors were agonizing over corporate profits and bracing for key U.S. inflation data for clues on the path of interest rates.
The pan-European STOXX 600 index was down 0.2% by 8:15 GMT.
Basic resources stocks led the decline, down 0.5%, tracking weak base metals and precious metals prices as investors remain cautious ahead of a major U.S. inflation scheduled for Thursday.
Tech View: Bullish Piercing Candlestick Pattern
On Wednesday, Nifty rose 74 points to find support near the 20-DMA and formed a Bullish Piercing candlestick pattern on the daily chart, suggesting potential bullish momentum.
“We believe the 20-day SMA or 21,500/71250 could act as a sacred support level for traders. It is highly likely that the above downward trend will continue. Above that, the chances of hitting 21720-21760/71900-72100 brighten. However, selling pressure is likely to accelerate below the 20-day SMA or 21500/71250. Below that, the market may decline towards 21400-21355/71000-70800,” said Shrikant Chouhan of Kotak Securities.
Stocks with a bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on counters including Tube Investments, JSW Energy, Bayer Cropscience, Nykaa, EID Parry and Blue Star.
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 of Page Industries, Zee Entertainment Enterprises, Asahi India Glass, Varroc Engineering, Indian Energy Exchange and Suven Pharma. 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 1,452 crore), HDFC Bank (Rs 1,332 crore), Kotak Bank (Rs 1,283 crore), Adani Enterprises (Rs 1,105 crore), ICICI Bank (Rs 930 crore), Adani Ports (Rs 850 crore) and Tata Motors ( Rs 801 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: 2.7 billion), Power Grid (Shares traded: 1.6 billion), ONGC (Shares traded: 1.6 billion), NTPC (Shares traded: 1.4 billion), SBI (Shares traded: 1.2 billion) ), Tata Motors (Shares traded: 99 lakh) and Coal India (Shares traded: 96 lakh) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Shares of Cipla, Tata Motors, SBI Life, Sun Pharma and Bharti Airtel touched their new 52-week highs, showing strong buying interest from market participants, indicating bullish sentiment.
Stocks under selling pressure
No major stock hit a new 52-week low on Wednesday.
Sentiment Meter Favors Bulls
Overall, market breadth favored the bulls. 2,045 stocks closed in the green and 1,790 stocks closed in the red.
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(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
