Ahead of Market: 12 things that will decide D-Street action on Friday

NEW DELHI: Indian stocks saw buying on Thursday after three days of selling as investors grabbed stocks at low valuations. Analysts also believe this is the right time to pick quality stocks at a lower valuation.

Here’s how analysts read the market pulse:

“Traders will now need to watch if the Nifty50 can cross the immediate resistances of 16,263-16,415 for the bulls to gain control,” said Subash Gangadharan of HDFC Securities, who sees support for the index at 16,006-15,903.

Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, said a Hammer hints at a further uptrend from the current levels.

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

Wall Street climbs 1%

US stock indexes climbed on Thursday after upbeat annual forecasts from several retailers, while data confirmed the U.S. economy contracted in the first quarter, easing concerns about aggressive interest rate hikes.

At 10:06 a.m. ET, the Dow Jones Industrial Average was up 442.60 points, or 1.38%, at 32,562.88, the S&P 500 was up 55.00 points, or 1.38%, at 4,033.73, and the Nasdaq Composite was up 162.14 points, or 1.42%, at 11,596.89.

European stocks close higher
European markets rose on Thursday with the retail sector leading the charge as Britain revealed new stimulus plans, while the U.S. Federal Reserve sticking to its monetary policy tightening script also bolstered risk appetite.

The pan-European STOXX 600 index closed higher for a second straight session, up 0.8%. Gains were largely broad-based, with retailers up 4.7%.

Tech View: Bearish candle

Nifty50 saw strong buying from its support of 15,900, as it ended up forming a Hammer candle on the daily chart, which is a bullish reversal candle. Analysts said such a formation would have a bullish connotation, provided the index attracts a follow-through buying in the next session.

F&O: Support at 16,000
On the call side, the biggest open interest is at 16,300 followed by 16,500, meaning these are two resistance levels. On the put side, open interest converges at 16,100, followed by 15,500, providing support.

Stocks showing bullish bias

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

, , Central Bank, , Info Edge 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

, , , , and Zee Entertainment. 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 2135 crore), Infosys (Rs 1850 crore), HDFC Bank (Rs 1830 crore), Tata Steel (Rs 1555 crore), HDFC (Rs 1352 crore), ICICI Bank (Rs 1014 crore) and (Rs 990 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

(Shares traded: 18 crore), (Shares traded: 9 crore), SAIL (Shares traded: 7 crore), YES Bank (Shares traded: 5 crore), Zomato (Shares traded: 5 crore) and GTL Infra (Shares traded: 4 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest

Not many stocks witnessed strong buying interest from market participants as none from BSE500 scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure

Divi’s Labs, BPCL,

, and JSW Steel witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured gainers as 1,690 stocks ended in the green, while 1,623 names settled with cuts.

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