The Nifty 50 ended 0.32% lower at 25,198 points, while the S&P BSE Sensex fell 0.25% to 82,352.
Here’s how analysts read the market pulse:
“Technically, the daily chart depicts a bullish belt hold candle at the breakout point of a rounded bottom pattern, indicating strength. On the downside, the 9-Day Exponential Moving Average (DEMA) is positioned near 25,090. As long as the index holds above the 25,000-25,100 levels, a “buy on dips” strategy should be employed. On the upside, the index may test the 25,500-25,600 levels in the near future,” said Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates.Tejas Shah, Technical Research at JM Financial & BlinkX, said, “The positive key takeaway is that Nifty is still holding above the psychological support level of 25,000 on a closing basis. The short term moving averages are also below the price action and should continue to support the indices on any decline. On the downside, 25,175-200/25,078/ 24,950-25,000 are three important supports and these levels can be used as a strict trailing stop for existing longs. On the higher side, immediate resistance for Nifty is at 25,300-325 levels and the next crucial resistance zone is at 25,450-500 levels. Overall, bulls should continue to have the upper hand going forward.”
That said, here’s a look at what some key indicators are suggesting for Thursday’s action:
US market:
Stocks are climbing on Wall Street on Wednesday, recovering from their worst performance in a month. The S&P 500 gained 0.4% in morning trading after dropping 2.1% the previous day. The Dow Jones Industrial Average added 201 points, or 0.5%, reaching 41,135. Meanwhile, the Nasdaq fell 0.4% as of 11:08 a.m. Eastern.
In other news, U.S. job openings unexpectedly dropped in July, suggesting a possible slowdown in hiring. The Labor Department reported 7.7 million job openings, down from 7.9 million in June and the lowest since January 2021. Openings have been declining throughout the year, from nearly 8.8 million in January. However, the overall report was mixed, as hiring increased last month.
European shares:
Europe’s main stock indices dropped to a two-week low on Wednesday, with technology shares leading the declines amid fears of a slowdown in the U.S. and weakness in the Chinese economy impacting global markets.
The pan-European STOXX 600 index decreased by 1%, with major regional markets falling between 0.5% and 1%. The STOXX volatility index climbed to its highest level since August 9.
Technology stocks in Europe were hit hardest, falling over 3% to a near one-month low. This drop followed a selloff in U.S. tech stocks, triggered by disappointing economic data that dampened market sentiment.
Tech View: Bullish counterattack type candle
Nifty ended below the 25,200-mark but formed a bullish counterattack type candle pattern on the daily charts and signal buy on dips opportunity in the market.
Nifty is currently placed at the crucial cluster support around 25000 levels (ascending trend line and 10-day EMA). The bullish pattern like higher highs and higher lows is visible on the daily chart, Nagaraj Shetti of HDFC Securities said.
“The near-term uptrend status remains intact for Nifty and any consolidations and minor dip down to 25K mark is expected to be a buying opportunity. One may expect Nifty to surge towards the new all-time highs soon around 25350-25400,” he said.
Open Interest (OI) data revealed the highest OI on the call side at 25,300 and 25,500 strike prices, while on the put side, it was concentrated at 25,000 strike price.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of OFSS, Sky Gold, Bombay Burmah Trading Corporation, Crisil, Ramco Systems, Mallcom, and Jupiter Life Line Hospitals 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 Inox Wind Energy, Bharat Rasayan, Info Edge, Protean eGov Technologies, TCS, Strides Pharma, TVS Srichakra 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:
Mazagon Dock Ship (Rs 3,728 crore), HDFC Bank (Rs 2,023 crore), RIL (Rs 1,811 crore), ICICI Bank (Rs 1,672 crore), HAL (Rs 1,544 crore), Zomato (Rs 1,425 crore), and Piramal Pharma (Rs 1,386 crore) among others 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: 28.1 crore), YES Bank (Shares traded: 7.5 crore), Piramal Pharma (Shares traded: 6.6 crore), Zomato (Shares traded: 5.9 crore), JM Financial (Shares traded: 5.6 crore), HFCL (Shares traded: 4.4 crore), and Tata Steel (Shares traded: 4 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of CCL Products, Piramal Pharma, Jubilant Ingrevia, PNB Housing, Biocon, FDC, and HPCL 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 shares hit their 52-week low on Wednesday.
Sentiment meter favours bears:
Overall, market breadth favoured bears as 2,043 stocks ended in the red, while 1,910 names settled in the green.
(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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