The NSE Nifty 50 fell 0.69% to 21,995, while the S&P BSE Sensex shed 0.62% to 72,489 at the close. The benchmarks rose as much as 0.8% during the session, but gave up gains in the final two hours of trade to close at four-week lows.
Here’s how analysts read the market pulse:
“On the hourly chart, the index has formed a Bullish Harami pattern, suggesting a potential bullish reversal in the near term. Additionally, a bullish divergence is evident on the hourly chart. Looking ahead, the index might advance towards 22,200/22,300; sustained trading above 22,300 could further strengthen the market. Support is situated at 21,900,” said Rupak De, LKP Securities.
Jatin Gedia of Sharekhan said, “On the daily charts, we can observe that the Nifty faced resistance at 22,300 – 22,320 zone where the key hourly moving averages were placed. On the downside, the Nifty is now approaching the lower end of the rising channel and the 78.6% Fibonacci retracement level 22,000 – 21,938. It shall be a crucial level to watch out for during the next few trading sessions. Divergence on the hourly time frame charts suggests that there could be a pullback over the next few trading sessions, however we shall await price confirmation.”
That said, here’s a look at what some key indicators are suggesting for Friday’s action:
Table of Contents
US Market
The benchmark S&P 500 and the Nasdaq were subdued on Thursday as higher Treasury yields pressured equities, while investors digested commentary from Federal Reserve officials to ascertain the outlook for interest-rate cuts. Data showed the number of Americans filing new claims for unemployment benefits was unchanged at low levels last week, pointing to continued labor market strength. U.S. Treasury yields continued to move higher after the data, with yield on the 10-year note last at 4.6223%.At 9:51 a.m. ET, the Dow Jones Industrial Average was up 145.40 points, or 0.39%, at 37,898.71, the S&P 500 was up 4.26 points, or 0.08%, at 5,026.47, and the Nasdaq Composite was down 12.80 points, or 0.08%, at 15,670.57.
European Shares
European shares edged up on Thursday, with industrials lifting the benchmark index following ABB’s upbeat results, while Germany-listed Sartorius was on track for its biggest drop in six months after bleak quarterly orders.
The continent-wide STOXX 600 was up 0.3%, as of 0854 GMT, as the earnings season picked up steam.
The industrials sector was the biggest boost with a 0.6% rise, driven by a nearly 5.2% surge in ABB as the Swiss engineering company’s profit trounced market expectations in the first quarter.
Tech View: Bearish Engulfing Candle
Nifty on Thursday ended 152 points lower to fall below the 22,000-level and form a Bearish Engulfing candle below its 50-DEMA on the daily chart.
The previous closure around 21,800 is likely to be seen as the pitstop for bears, and if bulls could not barge on there, then we may test the 100 DEMA placed around 21,600 on an immediate basis, Osho Krishan of Angel One said.
On the flipside, a series of resistance could be seen from 22150-22200, followed by the 20 DEMA at 22300 zone. The undertone certainly favours the bears now and any rise should be seen as an opportunity to either exit longs or to look for bearish bets in the index, the analyst said.
Stocks Showing Bullish Bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Sterling Wilson Solar, Ingersoll-Rand, and Poly Medicure, 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 Graphite India, Prestige Estate, Jupiter Wagons, Mphasis, Gland Pharma, and LTIMondtree, 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
Infosys (Rs 3,144 crore), RIL (Rs 2,794 crore), HDFC Bank (Rs 2,574 crore), Bharti Airtel (Rs 2,510 crore), Axis Bank (Rs 1,840 crore), ICICI Bank (Rs 1,757 crore), and Power Grid (Rs 1,440 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
Tata Steel (Shares traded: 6.8 crore), Power Grid (Shares traded: 5.1 crore), ONGC (Shares traded: 3.4 crore), NTPC (Shares traded: 2.2 crore), Infosys (Shares traded: 2.2 crore), ITC (Shares traded: 2.1 crore ), and Bharti Airtel (Shares traded: 2 crore) were among the most traded stocks in the session on the NSE.
Stocks showing buying interest
Shares of Just Dial, ABB Power, 360 One Wam, Quess Corp, Mankind Pharma, KSB, and Jio Financial Services, 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 bears
Overall, the market breadth favoured bears as 1,934 stocks ended in the red, while 1,863 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 Economic Times)
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