Ahead of the market: 10 things that will determine D-Street action on Thursday
The NSE Nifty50 index closed 0.64% lower at 22,055 and the S&P BSE Sensex closed 0.59% lower at 72,623.09. Nifty50 rose as much as 0.24% in the first hour of trading, hitting record highs for the third consecutive session before reversing gains in the final hour.
Here’s how analysts read the market pulse.
“For day traders now, 22,150/73,000 will act as an important resistance zone. As long as the market trades below the same level, the weak sentiment is likely to continue. Below that, the index will likely retest the 21,935-21,900/level. It can be done. Shrikant Chouhan of Kotak Securities said, “Conversely, if it exceeds 22,150/73,000, sentiment may change. “If it exceeds 22,150/73,000, the index may rise to 22,250-22,300/73,300-73,500,” he said.
Rupak De of LKP Securities said, “The momentum indicator RSI is showing a bearish crossover, indicating weakness in the near term. Immediate support is located at 22,000, and a decisive decline below this level could lead the index to 21,700. Resistance is found at 22,160.”
That said, let’s take a look at some key indicators that suggest action on Thursday.
american market
U.S. stocks fell Wednesday as investors braced for a high-risk earnings report from chip designer Nvidia that could derail AI euphoria this year if the results are poor and waited for the Federal Reserve to open its latest policy meeting. Nvidia fell 1.2% after being down for more than four minutes. A % decline from the previous session is expected ahead of the semiconductor company’s quarterly earnings expected after the market closes on Wednesday.
Five of the 11 major S&P sectors fell in early trading, with interest rate-sensitive technology stocks down 1%.
At 9:40 a.m. ET, the Dow Jones Industrial Average was down 104.68 points (0.27%) at 38,459.12, the S&P 500 was down 10.96 points (0.22%) at 4,964.55, and the Nasdaq Composite Index was down 69.03 points (0.44%). It has fallen. %, 15,561.76.
european stocks
European stocks fell on Wednesday after disappointing earnings reports from companies including HSBC and JDE Peet’s, with investors eyeing consumer confidence data across the region.
HSBC shares fell 7.1%, their biggest one-day decline since March 2020, after the company’s full-year profit missed expectations. The comprehensive banking index also fell 0.8%.
The pan-European STOXX 600 index fell 0.2%, with healthcare stocks down 0.9%, easing from a 10-month high in the previous session.
Tech View: Bearish Absorption Pattern
Nifty on Wednesday closed 142 points weaker, forming a bearish pattern on the daily chart, indicating a pause in the ongoing rally.
The bullish chart pattern of higher highs and lows as per the daily timeframe chart has continued and Wednesday’s swing high of 22,249 can now be considered a new higher high in the sequence. Therefore, near-term weakness can be expected and the next lower support will be watched at 21,850-21,750 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 ABB India, Clean Science & Technology, Alembic Pharma, Sunteck Realty, HFCL, FDC and others.
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 counters Relaxo Footwear, Prism Johnson, Colgate-Palmolive, NCC, Cipla and KEC International. 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 3,318 crore), RIL (Rs 1,875 crore), ICICI Bank (Rs 1,684 crore), SBI (Rs 1,654 crore), Tata Steel (Rs 1,272 crore), Axis Bank (Rs 992 crore) and Hindalco (Rs 992 crore). (crore) 942 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 (traded shares: 8.8 billion), Power Grid (traded shares: 2.4 billion), HDFC Bank (traded shares: 2.3 billion), SBI (traded shares: 2.1 billion), ITC (traded shares: 1.9 billion), Coal India (Shares traded: $1.9 billion) and Hindalco (Shares traded: $1.8 billion) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks such as SBI, M&M, ICICI Bank, Grasim Industries, Apollo Hospitals, RIL and Power Grid touched their 52-week highs, showing strong buying interest from market participants, 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 Bears
Overall, market breadth favored the bears, with 2,374 stocks closing lower and 1,467 stocks settling in the green.
(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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