Market Outlook: Ahead of the Market: 10 Things That Will Decide Your Stock Trading Friday
The NSE Nifty 50 index rose 0.49 per cent to 22,754, hitting a record high for the third consecutive session in intraday trading, while the S&P BSE Sensex rose 0.47 per cent to 75,038.
Here’s how analysts read the market pulse.
“Resistance lies at 22,700-22,750 and support lies at 22,600. A decisive move above 22,750 could lead to a near-term rally towards 23,000. The market appears to be range-bound, so buy on the dip and sell on the rise. Taking stop-loss measures may prove to be a good strategy.” This is Rupak De from LKP Securities.
Mandar Bhojane of Choice Broking said, “Both daily and hourly momentum indicators showed positive crossovers, indicating buying opportunities. Additionally, the daily Bollinger Bands showed extensions, suggesting increased range, and prices trended along the upper bands. Upcoming Trades “The session suggests the possibility of a continued uptrend.”
That said, let’s take a look at some key indicators that suggest action on Friday.US stock market rises
Wall Street’s main stock index opened higher on Thursday after weaker-than-expected producer price data eased investor concerns about inflation and kept expectations of a Federal Reserve interest rate cut this year.
The Dow Jones Industrial Average rose 61.75 points (0.16%) to 38,523.26 at the opening.
european stocks
European stocks fell on Thursday as investors avoided making big bets ahead of ECB President Christine Lagarde’s comments on the European Central Bank’s (ECB) monetary policy decision and the prospect of interest rate cuts.
The pan-European STOXX 600 index was down 0.3% as of 0906 GMT. Telecommunications led the sectoral declines, with Deutsche Telekom falling 5.5% as the company traded ex-dividend.
Tech View: High Wave Candle
Nifty ended the session today 111 points higher, forming a high wave candle on the daily chart.
Nifty is currently at a hurdle around 22800 levels (rising resistance trend line and 1.618% Fibonacci extension). However, Nifty is positioned near the hurdle and still there are no signs of a reversal forming from the highs. Immediate support is at the 22615 level. “A decisive move above the 22800 level is expected to open up further upward momentum for the market in the coming days,” said Nagaraj Shetti of HDFC Securities.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on counters such as Archean Chemical, HPCL, Vinati Organics, Bata India, Medplus Health and Tata Consumer.
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 that signal weakness from now on
MACD showed bearish signs on counters REC, Titan Company, Granules India, Astral Poly Tech, Union Bank India and Gillette India. 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 2,140 crore), RIL (Rs 1,350 crore), ICICI Bank (Rs 1,176 crore), SBI (Rs 1,123 crore), Tata Steel (Rs 1,069 crore), Infosys (Rs 1,011 crore) and Kotak Bank (Rs 1,011 crore) (crore) 1,003 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 (Shares traded: KRW 6.4 billion), Coal India (Shares traded: KRW 1.6 billion), SBI (Shares traded: KRW 1.4 billion), ITC (Shares traded: KRW 1.4 billion), HDFC Bank (Shares traded: 1.4 billion) billion), NTPC (shares traded: 1.3 crore) and Hindalco (shares traded: 1.2 crore) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Stocks such as Eicher Motors, ICICI Bank, NTPC, M&M, etc., 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 Wednesday.
Sentiment Meter Favors Bears
Overall, market breadth favored weakness. 1,939 stocks closed in the red and 1,904 stocks closed 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.)
