Stocks

ahead of market: Ahead of Market: 10 things that will decide D-Street action on Thursday

Benchmark indices ended Tuesday’s session on a weak note. Nifty fell by 74 points and closed at 17,656 points. Broader markets, however, defied trends and logged gains. Stock markets were closed on Wednesday on the account of Balipratipada, which is the 4th day of the Diwali festivities.

Here’s how analysts read the market pulse:

Om Mehra, Technical Associate, Choice Broking, said, “Technically speaking, the daily chart of the Nifty has formed a bearish candle, indicating that some profit taking is anticipated from higher levels. A directional upward move in the index requires a move over 17850. However, the Nifty 50 DMA, which is still close to the 17500 levels, will serve as a reliable support for the upcoming monthly expiry. Indicators like the RSI and MACD may shift from the neutral to somewhat negative zones.”

Vinod Nair, Head of Research at

, said, “The domestic market pared its early gains with FMCG and private banks pressuring the benchmark. Market attention has shifted to central bank policy announcements since the European Central Bank is expected to hike interest rates at its upcoming policy meeting. The impending US GDP data will give additional clarity to the expectation that the Fed will temper its aggression in regard to rate hikes.”

Here’s a look at what some key indicators are suggesting for Thursday’s action:

US Stocks
Tech-heavy Nasdaq index opened 2% lower on Wednesday as disappointing results and warnings from Microsoft and Alphabet sparked losses in megacap companies and raised fears of slowing economic growth.

The Dow Jones Industrial Average fell 98.30 points, or 0.31%, at the open to 31,738.44.

The S&P 500 opened lower by 33.14 points, or 0.86%, at 3,825.97, while the Nasdaq Composite dropped 230.10 points, or 2.05%, to 10,969.02 at the opening bell.

Tech stocks drag European shares lower
European stocks slipped from one-month highs on Wednesday, with technology stocks leading the losses as disappointing results from Wall Street giants and a warning from Dutch semiconductor supplier ASM added to concerns about slowing economic growth.

The pan-European STOXX 600 index fell 0.2% by 0719 GMT. The index hit more than a one-month high in the previous session on hopes that the U.S. Federal Reserve could slow its pace of interest rate hikes.

Tech View: Strong bearish candle
Nifty 50 established a strong bearish candle and a bearish engulfing pattern on daily scale which was restricting its upside momentum. Analysts said that the index’s moving averages have also started to inch higher.

“Now, it has to be above 17580 zones, for an up move towards 17777 and 17850 zones whereas supports are placed at 17580 and 17442 zones,” said Chandan Taparia of

.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trend in the counters of RVNL, SAIL,

, and Cipla among others.

The MACD is known for signaling trend reversals in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa.

Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of CG Power,

, , and among others.

Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms
ICICI Bank (Rs 1476 crore), RIL (Rs 1392 crore), Axis Bank (Rs 1187 crore), SBI (Rs 1151 crore), and

(Rs 1005 crore) were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.

Most active stocks in volume terms
PNB (Shares traded: 16.95 crore), BHEL (Shares traded: 13.32 crore), Zomato (Shares traded: 8.1 crore),

(Shares traded: 6.06 crore) and Yes Bank (Shares traded: 5.69 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of

, NHPC, Canara Bank, Bharat Dynamics, and among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure
Shares of Nykaa, Intellect Design, Teamlease,

, and IEX among others witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bears
Overall, market breadth favoured losers as 2,067 stocks ended in the red, while 1,364 names ended in the green.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)


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