Factors influencing Friday D-Street action
The NSE Nifty 50 index was down 0.69% at 21,995, while the S&P BSE Sensex was down 0.62% at 72,489. The benchmark rose as much as 0.8% during the session but gave up gains in the final two hours of trading to close at a four-week low.
Here’s how analysts read the market pulse.
“On the hourly chart, the index has formed a Bullish Harami pattern, hinting at the possibility of a bullish reversal in the near term. Also, a bullish divergence is evident on the hourly chart. Going forward, the index may rise towards 22,200/22,300,” said Rupak De of LKP Securities. “A trade above 22,300 could further strengthen the market as support could be located at 21,900,” he said.
Sharekhan’s Jatin Gedia said, “On the daily chart, we can see that Nifty is facing resistance in the 22,300-22,320 area where the key time moving averages are located. The downside is that currently Nifty is approaching the bottom of the rising channel. 78.6% Fibonacci The retracement level is 22,000 – 21,938, which is an important level to watch for over the next few trading sessions, but the divergence on the hourly chart suggests that there may be a price confirmation in the next few trading sessions.”
That said, let’s take a look at some key indicators that suggest action on Friday.
american market
As of Thursday, the S&P 500 and Nasdaq were lower as rising Treasury yields put pressure on stocks and investors digested comments from Federal Reserve officials to confirm the prospect of a rate cut. Data shows the number of Americans filing new claims for unemployment benefits remained low last week, indicating continued strength in the labor market. U.S. Treasury yields continued to rise following the data, with the 10-year yield last at 4.6223%. At 9:51 a.m. ET, the S&P Dow Jones Industrial Average was up 145.40 points, or 0.39%, at 37,898.71. 500 was traded at 5,026.47, up 4.26 points (0.08%), and the Nasdaq Composite Index was trading at 15,670.57, down 12.80 points (0.08%).
european stocks
European shares rose slightly on Thursday with industrials lifting benchmark indexes following positive results from ABB, while German-listed Sartorius suffered its biggest decline in six months after a dismal quarterly order.
The continent-wide STOXX 600 index was up 0.3% by 0854 GMT as earnings season got into full swing.
The industrial products sector was the biggest gainer, up 0.6%, led by ABB, which surged nearly 5.2% as the Swiss engineering company’s first-quarter profit beat market expectations.
Technical Perspective: Candlestick engulfing the downtrend
On Thursday, Nifty fell 152 points to fall below the 22,000-mark and formed a Bearish Engulfing candle below 50-DEMA on the daily chart.
Angel One’s Osho Krishan said the previous close near 21,800 is likely to be seen as a pitstop for the bears and if the bulls can’t barge in there, they could immediately test the 100 DEMA placed around 21,600.
On the other hand, a series of resistances can be seen at 22150-22200, followed by 20 DEMA at 22300 area. The current bearish mood is clearly in favor of the bears and any rise should be seen as an opportunity to exit long positions or look for bearish bets in the index, the analyst said.
Stocks with a bullish bias
Momentum indicator moving average convergence divergence (MACD) showed bullish trading on counters including Sterling Wilson Solar, Ingersoll-Rand and Poly Medicure.
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 in counters including Graphite India, Prestige Estate, Jupiter Wagons, Mphasis, Gland Pharma and LTIMondtree. A bearish crossover in the MACD of this counter indicates that it has just begun its downward journey.
Most Active Stocks by Value
Infosys (Rs 3,144 crore), RIL (Rs 2,794 crore), HDFC Bank (Rs 2,574 crore), Bharti Airtel (Rs 2,510 crore), Axis Bank (Rs 1,840 crore), ICICI Bank (Rs 1,757 crore) and Power Grid (Rs 1,757 crore). 1,440 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: KRW 6.8 billion), Power Grid (Shares traded: KRW 5.1 billion), ONGC (Shares traded: KRW 3.4 billion), NTPC (Shares traded: KRW 2.2 billion), Infosys (Shares traded: KRW 2.2 billion) ), ITC (equity volume: 2.1 crore) and Bharti Airtel (volume: 2 crore) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks such as Just Dial, ABB Power, 360 One Wam, Quess Corp, Mankind Pharma, KSB and Jio Financial Services broke their 52-week highs, showing strong buying interest from market participants, indicating bullish sentiment.
Stocks under selling pressure
No major stocks hit 52-week lows on Thursday.
Sentiment Meter Favors Bears
Overall, market breadth favored the bears, with 1,934 stocks ending in the red and 1,863 stocks ending 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.)
