The 30-share BSE benchmark Sensex surged 487 points or 0.66% to settle at 74,339. Similarly, the broader NSE Nifty advanced 168 points or 0.75% to close at 22,570.
Here’s how analysts read the market pulse:
“The resistance of Nifty is at 22650 to 22850 levels. Today’s upsurge was owing to the trap of writers at the 22500 levels. These writers will further cause flurry as they are present in the May expiry as well,” said Rahul Ghose Founder & CEO, Hedged.in.
Rupak De of LKP Securities, said, “Nifty continues to stay above the 21-day Exponential Moving Average (EMA), which is a critical near-term moving average. Additionally, the momentum indicator RSI is showing a bullish crossover, indicating positive momentum in the index value. Over the short term, the index might remain strong with an upside potential ranging between 22750-22800. On the lower end, support is placed at 22450.”
That said, here’s a look at what some key indicators are suggesting for Friday’s action:
Table of Contents
US market
US stocks were sharply lower on Thursday, dragged down by growth stocks after the quarterly results from Meta Platforms, while signs of persistent inflation dampened hopes of the Federal Reserve cutting interest rates anytime soon.
Meta plunged 14.7% after the Facebook-parent forecast higher expenses and lighter-than-expected revenue.
Social media firms such as Snap and Pinterest fell 4.2% and 4.9%, respectively.
At 9:41 a.m. ET, the Dow Jones Industrial Average was down 563.67 points, or 1.47%, at 37,897.25, the S&P 500 was down 72.69 points, or 1.43%, at 4,998.94, and the Nasdaq Composite was down 336.28 points, or 2.14%, at 15,376.47.
Downbeat results from other companies also weighed on equities.
European shares
European stocks edged lower on Thursday as traders gauged mixed earnings from blue-chip companies such as Nestle and Deutsche Bank, while big M&A news in the mining sector powered Britain’s FTSE 100 to fresh peaks.
The pan-European STOXX 600 index was down 0.1%, as of 0857 GMT, dented by losses in food and beverage and industrial goods sectors.
Weighing on the food and beverage sector, Nestle dropped 3.4% after the world’s biggest packaged food company missed estimates for first-quarter organic sales growth.
Tech View: Bullish engulfing candle
Nifty on Thursday ended 168 points higher to form a bullish engulfing candle following a series of small candles, suggesting meaningful buying activity during the day.
The hourly momentum indicator has triggered a positive crossover which is a buy signal and thus we expect the positive momentum to continue over the next few trading sessions. On the upside the next immediate hurdle is placed at 22,776. The stop-loss for long positions should be trailed at 22,430 levels, which is the 20 hour moving average, Jatin Gedia of Sharekhan said.
Analysis of Nifty Put options indicates a concentration of Open Interest (OI) at the 22,500 level, suggesting potential support. On the Call side, significant OI concentrations are observed at the 22,900 and 23,000 levels, nearing all-time highs.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Dixon Technologies, Bajaj Finance, Cummins India, Kirloskar Industries, and Craftsman Automation, among others.
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 Bharat Bijlee, M&M, JSW Energy, Symphony, and Tata Power, among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
Kotak Bank (Rs 10,952 crore), Axis Bank (Rs 5,154 crore), SBI (Rs 2,933 crore), HDFC Bank (Rs 2,680 crore), RIL (Rs 2,323 crore), ICICI Bank (Rs 2,211 crore), and Infosys (Rs 1,305 crore) were among the most active stocks on the NSE in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.
Most active stocks in volume terms
Kotak Bank (Shares traded: 6.6 crore), Tata Steel (Shares traded: 5 crore), Axis Bank (Shares traded: 4.6 crore), SBI (Shares traded: 3.6 crore), ITC (Shares traded: 2.9 crore), Power Grid (Shares traded: 2.2 crore), and ICICI Bank (Shares traded: 1.9 crore) were among the most traded stocks in the session on the NSE.
Stocks showing buying interest
Shares of SBI, JSW Steel, Eicher Motors, Hindalco, and ICICI Bank among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Shares of Kotak Bank and Dalmia Bharat hit their 52-week lows, signalling bearish sentiment on the counters.
Sentiment meter favours bulls
Overall, market breadth favoured bulls as 2,076 stocks ended in the green, while 1,718 names settled in the red.
(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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