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

Displaying strength for the second consecutive session on the back of softening commodity prices, the domestic equity market today rose nearly one per cent. Nifty settled around the day’s high to close at 16,132.9 levels. In line with the trend, the market breadth was also inclined strongly on the advancing side.

Here’s how analysts read the market pulse:

Siddhartha Khemka, Head – Retail Research,

, attributed the rally to positive global cues, Brent crude falling to below $100/bbl and slower intensity of FII selling. “Healthy pre-quarterly updates also boosted market sentiments. Real estate stocks continued to be in focus on the back of strong demand in key markets.”

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said after the upside breakout of the hurdle at 15,900 levels recently, the market is now advancing towards another hurdle of the previous opening downside gap of 13th June at 16,175 levels. “Hence, a sustainable move above 16,200 levels could open further sharp up move.”

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

US stocks rise again

Wall Street stocks rose early Thursday, extending a positive trading stretch as markets weigh recent drops in commodity prices against recession risk. In early trading, the Dow Jones Industrial Average was up 0.9 percent to 31,321.94.

The broad-based S&P 500 gained 1.1 percent to 3,887.07, while the tech-rich Nasdaq Composite Index advanced 1.4 percent to 11,516.19.

European shares march higher

Economy-sensitive stocks and chipmakers boosted European shares on Thursday, with the latter getting a lift from upbeat results by South Korea’s Samsung, while investors awaited minutes of the European Central Bank (ECB) meeting for clues on rate hikes.

The continent-wide STOXX 600 index was up 1.4%, building on a strong rally marked in the previous session as a strike by Norway’s oil and gas workers came to an end.

Tech View: Bullish candle with long wick

Nifty50 formed a bullish candle on the daily chart with a long wick. Analysts said since the breakout of 15,900, the technical setup for the index looks positive. They believe a push above the 16,150-175 range may attract further buying.

Stocks showing bullish bias

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

, Max Financial, , , and Shree Renuka Sugar.

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 Sona BLW, Relaxo,

, V-Guard, Cipla and . A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks in value terms
RIL (Rs 2,572 crore),

(Rs 1,260 crore), HDFC Bank (Rs 1,231 crore), Tata Steel (Rs 978 crore), HUL (Rs 834 crore), and (Rs 786 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: 3.6 crore), Hindalco (Shares traded: 1.9 crore), NTPC (Shares traded: 1.8 crore), Tata Motors (Shares traded: 1.8 crore), ITC (Shares traded: 1.4 crore) and SBI (Shares traded: 1.1 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of

, M&M, , ABB India, , and Siemens witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of 5Paisa,

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

Sentiment meter favours bulls
Overall, market breadth favoured winners as 2,198 stocks ended in the green, while 1,099 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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