Ahead of Market: 12 things that will decide D-St action on Thursday

Benchmark indices fell for another session on Wednesday as RBI hiked policy rates that will make taking loans expensive. However, analysts believe investors should not be disheartened as long term structure is positive.

Here’s how analysts read the market pulse:

A reasonable negative candle formed on the daily chart, placed beside the small negative candle of the previous session. This pattern indicates choppy movement in the market with a negative bias, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Ruchit Jain, Lead Research,
5paisa.com, said the trend for the markets was clearly to ‘sell on rise’ as the hourly charts continue to exhibit a ‘lower top lower bottom’ structure. The derivatives data also indicates cautiousness as FII’s again have more short positions outstanding in the index futures segment, he said.

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

S&P 500, Dow fall as Intel slides

The Dow and the S&P 500 index slipped in choppy trading on Wednesday, pulled lower by shares of Intel after a bearish brokerage report, while the Nasdaq was propped up by gains in Tesla and Apple.

At 10:02 a.m. ET, the Dow Jones Industrial Average was down 103.37 points, or 0.31%, at 33,076.77 and the S&P 500 was down 8.79 points, or 0.21%, at 4,151.89.

The Nasdaq Composite was up 28.08 points, or 0.23%, at 12,203.31, boosted by a 4.3% rise in Tesla Inc shares.

European markets closed lower

European shares closed lower as a 7% slide in Credit Suisse following a profit warning dragged on lenders, while investors braced for the European Central Bank’s meeting on Thursday and the U.S. Federal Reserve’s next week.

The pan-European Stoxx 600 provisionally ended 0.7% lower, with insurance stocks shedding 1.6% to lead losses.

Tech View: Bearish candle

After a volatile session, largely affected by rate hike and commentaries from the RBI, NSE Nifty 50 ended the day with a cut and formed a bearish candle on daily charts on Wednesday.

F&O: Support at 16,000
On the call side, the biggest open interest is at 16,800 followed by 16,600, meaning these are two resistance levels. On the put side, open interest converges at 16,000, followed by 16,200, providing support.

Stocks showing bullish bias

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

, , , JB Chemicals and Rites.

The MACD is known for signalling 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 Dr Reddy’s Labs, Siemens, Blue Dart, Nestle India,

and TTK Prestige. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks in value terms

(Rs 1578 crore), MRPL (Rs 1033 crore), (Rs 938 crore), (Rs 877 crore), SBI (Rs 808 crore), and (Rs 792 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

MRPL (Shares traded: 9 crore),

(Shares traded: 9 crore), (Shares traded: 5 crore), (Shares traded: 5 crore), (Shares traded: 5 crore) and Zomato (Shares traded: 5 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest

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

Stocks seeing selling pressure

Aptus Value, Hikal,

, Nuvoco Vistas, and 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 1,513 stocks ended in the green, while 1,799 names settled with cuts.

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