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

Estimated read time 15 min read
Indian blue-chip equity indices recovered from a muted start to log record closing highs on Thursday, led by private banks and metals, while a dip in pharma stocks capped gains.

The NSE Nifty 50 settled 0.22% higher at 23,567, while the S&P BSE Sensex added 0.18% to 77,479.

Here’s how analysts the market pulse:

“The market consolidated within a range, with the index stuck between 23,400 and 23,650. The undertone remains bullish as long as the index sustains above the 23,400 support, where aggressive put writing is visible. Surpassing the 23,650 mark will open further room towards the 23,800/24,000 levels,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Tejas Shah of JM Financial & BlinkX, said, “Support for the Nifty is now seen at 23,500 and 23,300-350 levels. On the higher side, the immediate resistance zone is at 23,600-625 levels and the next resistance zone is at 23,750-800 levels.”That said, here’s a look at what some key indicators are suggesting for Friday’s action:

US market

The benchmark S&P 500 touched a record high on Thursday, boosted by strong gains in Nvidia, while investors assessed the recent economic data and commentary from Federal Reserve officials to gauge the timing for interest rate cuts this year.At 9:51 a.m. ET, the Dow Jones Industrial Average was up 109.08 points, or 0.28%, at 38,943.94, the S&P 500 was up 29.81 points, or 0.54%, at 5,503.04, and the Nasdaq Composite was up 52.21 points, or 0.29%, at 17,914.44.

European shares

European shares gained on Thursday, boosted by an advance in technology and real estate stocks, while Swiss equities gained after the central bank continued to loosen monetary policy.

The pan-European STOXX 600 gained 0.4% as of 0820 GMT. Technology stocks led the gains, rising 1.2%, while real estate jumped about 1%.

Lifting the tech index was ASMI, which jumped 5.1% after Morgan Stanley upgraded the semiconductor equipment manufacturer to “overweight” from “equal-weight”.

UK’s FTSE 100 was last up 0.2%.

Tech View: High wave type candlestick

Nifty ended Thursday’s weekly expiry session 51 points higher to form a high wave type candlestick on the daily charts.

The short-term trend of Nifty continues to be positive amid high volatility. Having moved above the hurdle of 22,250 levels (mid part of Tuesday’s long bear candle) recently, the Nifty could move towards the next upper hurdle of 23,200 (upper part of long bear candle) in the near term. Immediate support is at 22,640 levels, said Nagaraj Shetti of HDFC Securities.

Open Interest (OI) data showed that on the call side, the highest OI was observed at 24,000 and 24,200 strike prices. On the put side, the highest OI was at the 23,000 strike price.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of RedTape, Kirloskar Electric Company, Gokaldas Exports, and TIL among others.

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 signaling weakness ahead

The MACD showed bearish signs on the counters of Hitachi Energy India, ABB India, Abbott India, Hero MotoCorp, Finolex Cables, and Gillette India 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

HDFC Bank (Rs 3,453 crore), Chambal Fertilisers (Rs 3,182 crore), Rashtriya Chemicals & Fertilizers (Rs 3,035 crore), HAL (Rs 2,568 crore), RIL (Rs 2,373 crore), GSFC (Rs 2,010 crore), and GNFC (Rs 1,930 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 highest trading turnovers in the day.

Most active stocks in volume terms

Vodafone Idea (Shares traded: 74 crore), YES Bank (Shares traded: 17 crore), Rashtriya Chemicals & Fertilizers (Shares traded: 14 crore), Suzlon Energy (Shares traded: 9.9 crore), GSFC (Shares traded: 7.6 crore), IDFC First Bank (Shares traded: 7.3 crore), and Shree Renuka Sugar (Shares traded: 6.6 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest

Shares of Rashtriya Chemicals & Fertilizers, FACT, CE Info Systems, Chambal Fertilisers, Deepak Fertilisers, Mahindra Holiday, and Prestige Estate among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure

No major stocks hit their 52-week lows on Thursday.

Sentiment meter favours bulls

Overall, market breadth favoured bulls as 2,254 stocks ended in the green, while 1,612 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 the Economic Times)

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