Market Outlook: Ahead of the Market: 10 Things That Will Decide Friday’s D-Street Action
The NSE Nifty 50 index rose 1.23 per cent to 21,182, while the S&P BSE Sensex rose 1.34 per cent to 70,514.
The 50-member Nifty index has hit record highs in eight out of 10 sessions so far this month. The 5.21% increase over this period is almost identical to the 5.52% increase over the previous month, which is the highest since July 2022.
Here’s how analysts read the market pulse.
“If you look at the daily chart, you can see the decline from the previous trading session to 20,800 – 20,770, and the recovery that started on Wednesday continued on Thursday. The current uptrend could extend to 21,311 – 21,447. There is room for upside and the corresponding support zone of 21,130 – 21,090. A pullback towards should be exploited as a buying opportunity. The momentum setup also suggests continuation of the current upward movement. So, both price and momentum are suggesting continuation of the current upward movement,” Jatin Gedia said. Sharekan.
Rupak De of LKP Securities said, “The index has come out of consolidation with increasing buy positions compared to sell trades among participants. Sentiment remains solid as the index is comfortably positioned above important moving averages. Support remains strong. “It’s at the following location.” 21,000 where the Put author holds a significant position. There is a possibility that the index will rise above 21,400 in the future.”
That said, let’s take a look at some key indicators that suggest action on Friday.american market
Wall Street’s main indexes rose Thursday as tech giant Apple hit a record high, a day after the Federal Reserve signaled an end to its aggressive interest rate hike campaign and signaled that borrowing costs would be lower next year.
Federal Reserve Chairman Jerome Powell kept interest rates on hold Wednesday, as expected, saying historically tight monetary policy was likely over as inflation was falling faster than expected and talks about cutting borrowing costs were “under review.” At 9:42 a.m. ET, the Dow Jones Industrial Average rose 35.43 points (0.10%) to 37,125.67, the S&P 500 rose 21.56 points (0.46%) to 4,728.65, and the Nasdaq Composite Index rose 92.21 points (0.63%). has risen. %, 14,826.17.
Ten of the S&P 500’s top 11 sectors rose, led by real estate stocks, which rose 2.3%, while the small-cap Russell 2000 index surged 2.9% to its highest level since early February.
european stocks
European stocks were strong on Thursday as investors ignored the European Central Bank’s (ECB) opposition to the market’s interest rate cut bets and cheered a dovish shift from the U.S. Federal Reserve a day earlier.
The pan-European index rose 1.4% by 1355 GMT to a nearly two-year high, while the eurozone’s top blue-chip index rose 0.8% to a 22-year high.
Both indices briefly pared gains after the ECB backed off bets that a rate cut was imminent by reaffirming that borrowing costs will remain at record highs despite low inflation expectations. However, the central bank kept interest rates steady, as expected.
Tech View: Doji candle with long legs
On Thursday, Nifty rose 256 points to close at a record high, forming a long-legged Doji candle on the daily chart.
The short-term trend in the market continues to be positive. There are chances that Nifty will reach the important resistance of 21550 level next week which is 78.6% Fibonacci extension (taken from March bottom, September top and October bottom). Nagaraj Shetti of HDFC Securities said immediate support lies at the 21050 level.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on counters including United Spirits, GSK Pharma, Trent, Hero MotoCorp, Suprajit Engineering and NMDC.
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 Cyient, Oil India, MRPL, CH Power and Industrial Solutions, Tata Teleservices and EID Parry. A bearish crossover in the MACD of this counter indicates that it has just begun its downward journey.
Most Active Stocks by Value
HDFC Bank (Rs 2,903 crore), RIL (Rs 2,091 crore), Infosys (Rs 1,863 crore), ICICI Bank (Rs 1,687 crore), Bajaj Finance (Rs 1,288 crore), TCS (Rs 1,205 crore) and Axis Bank (Rs). 1,062 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 4.3 billion), Power Grid (Shares traded: KRW 2.9 billion), NTPC (Shares traded: KRW 2.4 billion), HDFC Bank (Shares traded: KRW 1.7 billion), ICICI Bank (Shares traded: KRW 1.7 billion) 1.6 billion), SBI (stocks traded: $1.5 billion), ONGC (stocks traded: $1.5 billion), etc. were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks of LTIMindtree, HCL Tech, IndusInd Bank, Bajaj Finserv, ICICI Bank, Hindalco and Adani Ports touched new 52-week highs, showing strong buying interest from market participants, indicating bullish sentiment.
Stocks under selling pressure
No major stocks hit new 52-week lows on Thursday.
Sentiment Meter Favors Bulls
Overall, market breadth favored strength with 2,026 stocks closing in the green and 1,748 stocks ending 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.)
