Ahead of Market: 10 things that will decide D-St action on Friday

The monthly F&O expiry day on Thursday was volatile, with headline indices ending with marginal losses. Nifty consolidated within a range and ended the day below 15,800.

Here’s how analysts read the market pulse:

Ruchit Jain, Lead Research,
5paisa.com, said that post the recent pullback move, many key indices such as Nifty, Bank Nifty, Nifty IT, Midcap100 and Smallcap are trading around their respective 20-day EMAs. “A closing above this average is required for a continuation of the positive momentum, and until then, the risk remains high for fresh longs, and hence one should be light on positions,” he said.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said after the formation of a false upside breakout at 15,800 levels on 27th June, the absence of any sharp weakness from near the hurdle in the last three sessions could be in favour of bulls to make a comeback from the lows. “But, any decisive move below 15,600 levels is likely to negate the bullish bet and could result in sharp weakness down to 15,200 levels.”

That said, here’s a look at what some key indicators are suggesting for Friday’s action:

S&P 500 set for worst first-half since 1970
US stocks tumbled on Thursday, setting the S&P 500 for its worst first six months since 1970, on concerns that central banks determined to tame inflation will hamper global economic growth.

Fears over slowing growth and surging prices have rippled through markets, with recession worries taking center stage as monetary policymakers across the world look to aggressively raise borrowing costs.

At 10:22 a.m. ET, the Dow Jones Industrial Average was down 527.89 points, or 1.70%, at 30,501.42, the S&P 500 was down 73.94 points, or 1.94%, at 3,744.89, and the Nasdaq Composite was down 304.66 points, or 2.73%, at 10,873.23.

European shares face worst quarter since early 2020
European shares on Thursday looked set for their worst quarter since the pandemic-led carnage in early 2020, as investors became increasingly wary of a global recession in the wake of hawkish central bank actions to tame rapid inflation.

The continent-wide STOXX 600 index dropped 1.3%, setting it up for quarterly losses of more than 10%.

France’s CAC 40 index slid 1.8% as preliminary official figures showed inflation climbed further from the previous month to a record 6.5%.

Tech View: Nifty forms Doji candle

Nifty50 formed a Long-legged Doji on the daily chart. Such a candle suggests indecisiveness among traders. Analysts said the index needs to move out of the 15,600-900 range for a directional move.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of

, , , , and .

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

, Info Edge, SJVN, Bharat Forge, TCS and BEL. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms

RIL (Rs 2,769 crore), Infosys (Rs 1,343 crore),

(Rs 966 crore), TCS (Rs 891 crore), (Rs 847 crore), and (Rs 840 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 the highest trading turnovers in the day.

Most active stocks in volume terms

ONGC (Shares traded: 3.8 crore), Hindalco (Shares traded: 2.1 crore),

(Shares traded: 2 crore), NTPC (Shares traded: 1.9 crore), ITC (Shares traded: 1.9 crore) and SBI (Shares traded: 1.7 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest

Shares of TVS Motor, Blue Dart and

witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure

Hathway Cable, Star Health,

, , Thyrocare, Wockhardt and Biocon witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bears

Overall, market breadth favoured losers as 1,328 stocks ended in the green, while 1,947 names settled with cuts.

(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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