Ahead of the Market: Ahead of the Market: 10 Things That Will Rule D-Street Action on Thursday

Benchmark indices ended Tuesday’s session weakly. Nifty was down 74 points to close at 17,656 points. Broader markets, however, defied trends and made gains. The exchanges were closed on Balipratipada’s account on Wednesday, the 4th day of the Diwali festivities.

This is how analysts read the market pulse:

Om Mehra, Technical Associate, Choice Broking, said: “Technically, the Nifty’s daily chart has formed a bearish candle, indicating some profit taking is expected from higher levels. A directional upward move in the index will require a move above 17850. However, the Nifty 50 DMA, which is still close to the 17500 levels, will serve as a reliable support for the upcoming monthly expiration. Indicators such as the RSI and MACD may shift from neutral to slightly negative zones.”

Vinod Nair, head of research at

said: “The domestic market managed to soften its early gains with FMCG and private banks pushing the benchmark. Market attention has shifted to central bank policy announcements as the European Central Bank is expected to interest rates will increase during its upcoming policy meeting. The impending US GDP data will provide additional clarity on the expectation that the Fed will temper its aggression towards rate hikes.”

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

The US StocksTech-heavy Nasdaq index opened 2% lower on Wednesday after disappointing results and warnings from Microsoft and Alphabet led to losses among megacap companies and fears of slowing economic growth.

The Dow Jones Industrial Average fell 98.30 points, or 0.31%, on opening to 31,738.44.

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

Technology stocks drag European equities down European equities fell from a month-long high on Wednesday, with tech 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% at 0719 GMT. The index peaked for more than a month during the previous session in hopes that the US Federal Reserve could slow the pace of rate hikes.

Tech View: Strong Bearish Candle Nifty 50 established a strong bearish candle and a bearish engulfed pattern on a daily scale, limiting upward momentum. Analysts said the index’s moving averages also started inches higher.

“Now it should be above 17580 zones, for an upward movement towards 17777 and 17850 zones, while placing supports in 17580 and 17442 zones,” said Chandan Taparia of

.

Stocks exhibiting 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.

Shares point to 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 are just beginning 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 shares on NSE in terms of value. Higher activity on a counter in terms of value can help identify the counters with the highest trade turnover on 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 shares in the session on NSE.

Stocks showing interest in buyingShares of

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

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

and IEX, among others, witnessed strong selling pressure reaching their 52-week low, suggesting bearish sentiment on counters.

Sentiment gauge favors bears Overall, market breadth favored losers as 2,067 stocks ended in the red while 1,364 names ended in the green.

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

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