The benchmark NSE Nifty 50 index rose 0.5% to 21,255 points, while the S&P BSE Sensex also settled 0.5% higher at 70,865.
Here’s how analysts read the market pulse:
“Though the market saw profit booking yesterday (Wednesday), the underlying sentiments remain positive given robust micro and macro domestic factors,” said Siddhartha Khemka, head – Retail Research, Motilal Oswal.
“Some consolidation is warranted in the near term due to peak valuation. A gradual rise in oil prices along with concern over high domestic food inflation may have a hindrance to the stretched rally of the last 2 months,” said Vinod Nair, head of research at Geojit Financial Services
That said, here’s a look at what some key indicators are suggesting for Thursday’s action:
US market
Wall Street advanced on Thursday after recovering from a broad sell-off in the prior session, with latest data adding to expectations that borrowing costs could ease next year, while chipmaker Micron advanced after giving an upbeat forecast. A Commerce Department report showed the final gross domestic product estimate for the third quarter stood at 4.9%, compared with previous estimates of 5.2%.
At 9:46 a.m. ET, the Dow Jones Industrial Average was up 291.20 points, or 0.79%, at 37,373.20, the S&P 500 was up 38.60 points, or 0.82%, at 4,736.95, and the Nasdaq Composite was up 146.11 points, or 0.99%, at 14,924.06.All of the S&P 500’s sectors were in gains, with the tech sector leading with a 1.1% rise, while the small-caps Russell 2000 index rose 1.2%.
European shares
European shares fell on Thursday, led by losses in real estate and automobiles stocks, as a rally in global stocks stalled and investors awaited crucial U.S. economic growth data later in the day.
The pan-European STOXX 600 index fell 0.3% by 0935 GMT, on track to snap a two-day streak of gains and mirroring declines in its regional peers.
The automobile and parts index was the biggest decliner, with a 1% fall, while rate-sensitive real estate stocks slipped 0.8%.
Tech View: Bullish Piercing candlestick pattern
The Nifty closed above its 10-day moving average, signalling positive momentum. Key levels to monitor include 21,000 as immediate support and 21,300 as the initial resistance.
“We expect consolidation in the index now; however there will be no shortage of trading opportunities on the stock-specific front,” said Ajit Mishra of Religare Broking.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Tata Consumer, ONGC, Supreme Industries, Vijaya Diagnostic 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 Gujarat Ambuja, SJVN, Cochin Shipyard, NMDC, Gland Pharma, TV18 Broadcast 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 (Rs 3,060 crore), ICICI Bank (Rs 1,804 crore), RIL (Rs 1,756 crore), SBI (Rs 1,272 crore), Axis Bank (Rs 1186 crore), Infosys (Rs 817 crore), and L&T (Rs 775 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
Tata Steel (Shares traded: 3.4 crore), ONGC (Shares traded: 2.28 crore), SBI (Shares traded: 1.9 crore), HDFC Bank (Shares traded: 1.8 crore), ICICI Bank (Shares traded: 1.8 crore), NTPC (Shares traded: 1.7 crore), and Power Grid (Shares traded: 1.7) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of Hindustan Copper, Shyam Metalics, Metropolis Health, Aurobindo Pharma, Cyient, GE Shipping, Torrent Pharma among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Polyplex Corp is the only stock that hit its 52-week low on Monday.
Sentiment meter favours bulls
Overall, market breadth favoured bulls as 2,649 stocks ended in the green, while 1,134 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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