Market Outlook: Ahead of the Market: 10 Things That Will Decide Friday’s D-Street Action
The Nifty50 index rose 0.57% to 21,778 points and the S&P BSE Sensex rose 0.52% to 72,410 points.
The 50-member Nifty index has now hit record highs in 13 of the 19 sessions in December. It’s up more than 8% so far this month, marking its best month since July 2022.
Here’s how analysts read the market pulse.
“Nifty remained firmly in the bullish territory as the index surged to an all-time high. A strong put at the 21,700 strike strengthened the strength and took the index up to 21,800. Short-term support lies at 21,700, indicating continued bullish sentiment. “A decisive move above 21,800 could take the index towards the 22,000 mark,” said Rupak De, senior technical analyst at LKP Securities.
“21,900-22,000 is an immediate hurdle while 21,500-21,480 is considered a strong support zone while immediate support moves higher towards a bullish gap around 21,675,” said Rajesh Bhosale, technical analyst at Angel One.
That said, let’s take a look at some key indicators that suggest action on Friday.femaleEvery street opens higher
U.S. stocks rose slightly in light trading on the second trading day of 2023, while the benchmark S&P 500 hovered near record highs on expectations of an early interest rate cut next year.
Eight of the 11 S&P sub-indexes traded in the green, with the healthcare sector leading the gains, up 0.5%.
The energy index fell 0.4% after oil prices fell about 1% on Thursday as concerns about shipping disruptions along the Red Sea route eased even as tensions in the Middle East continued to worsen.
European stock markets are flat
European shares were flat on Thursday as falling energy stocks countered gains in healthcare stocks, but markets looked set to end the year on a strong note amid ongoing hopes that major global central banks will be able to reduce borrowing costs next year.
The pan-European STOXX 600 index remained at 478.67 points as of 0922 GMT, near a 23-month high reached two weeks ago.
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Nifty closed 124 points higher today and crossed the 21,800 mark for the first time, forming a reasonable candle at the high and indicating an uptrend continuation pattern.
After crossing the initial hurdle of 21650 level, Nifty is expected to advance towards the next overhead resistance of 22,200 level in the near term. This is close to a 100% Fibonacci extension of the major bottom-top-bottom. Nagaraj Shetti of HDFC Securities said immediate support is at 21550 levels.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on the counters of Emami, Lupin, MRF, Hero MotoCorp, GSK Pharma and Macrotech Developers.
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 Indian Oil Corporation, GMR Airports Infrastructure, Quess Corp, Linde India, Central Bank and UTI AMC. A bearish crossover in the MACD of this counter indicates that it has just begun its downward journey.
Most Active Stocks by Value
ICICI Bank (Rs 3,771 crore), ICICI Bank (Rs 2,503 crore), RIL (Rs 1,600 crore), Axis Bank (Rs 1,560 crore), Bajaj Finance (Rs 1,347 crore), L&T (Rs 1,189 crore) and NTPC (Rs 1,189 crore) (crore) 1,176 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
Power Grid (traded shares: KRW 3.9 billion), NTPC (traded shares: KRW 3.7 billion), Tata Steel (traded shares: KRW 3.4 billion), Coal India (traded shares: KRW 2.8 billion), ICICI Bank (traded shares: KRW 2.4 billion), BPCL (Shares traded: 2.2 billion), HDFC Bank (Shares traded: 2.2 billion), etc. were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks of Coal India, M&M, Hero MotoCorp, NTPC, Power Grid, Nestle and Tata Motors touched their 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 Bears
Overall, market breadth favored the bears, with 2,050 stocks ending in the red and 1,746 stocks ending in the green.
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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.)
