Chandan Taparia, Technical & Derivative Analyst at MOFSL said, “Nifty has to hold above 15,000 level to continue the bullish momentum towards 15,200 and the 15,250 levels. On the downside, major support can be seen at 14,850 and 14,750 levels.
“The market witnessed a slip in its momentum during a volatile day as losses in banking stocks weighed on the sentiment. Auto, realty and consumer stocks remained firm along with mid and smallcap indices outperforming. Global markets remained positive, supported by upbeat quarterly earnings while the trend was followed by most of the global peers,” Vinod Nair, Head of Research at
.
That said, here’s a look at what some of the key indicators are suggesting for Thursday’s action:
US stocks fall after hitting record highs
Wall Street’s main indexes turned negative in volatile trading on Wednesday after the S&P 500 and the Dow hit record highs at the open on hopes of faster economic growth. The Dow Jones Industrial Average fell 73.22 points, or 0.23%, to 31,302.73, the S&P 500 lost 9.58 points, or 0.24%, to 3,901.72 and the Nasdaq Composite lost 73.65 points, or 0.53%, to 13,934.05.
European shares gain on stimulus hopes
European shares rose on Wednesday as upbeat earnings reports from firms including SocGen helped boost optimism around a broader economic rebound, while shipping company Maersk slumped after its quarterly profit missed estimates. The pan-European STOXX 600 index rose 0.26%, with commodity-linked shares and utility stocks leading the gains.
Tech View: Nifty slips into consolidation phase
Back-to-back indecisive candles on Nifty’s daily charts have weakened the momentum for the index, which looked poised to hit the 15,500 mark a couple of days ago. Analysts said the index may now consolidate in the 15,000-15,250 range for some time, before it heads higher again. “Nifty recovered from the 15,000 level and posted a marginal negative close. The overall structure shows the index can continue to consolidate in the 15,000-15,250 zone before heading higher. Once the consolidation is done, the index can head for a short-term target of 15,450,” said Gaurav Ratnaparkhi of Sharekhan.
Check out the candlestick formations in the latest trading sessions
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F&O: VIX cools down a bit
India VIX fell 1.31 per cent from 24.27 to 23.95 levels. Now, VIX needs to cool down and hold below 21 level for the continuation of the ongoing momentum with a higher market base. There was Put writing at strike prices 14,300 and 14,100, while Call writing was seen at 16,000 and 15,900 levels. Options data suggested a wider trading range between 14,500 and 15,500 levels, while an immediate range was seen between 14,800 and 15,300 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Wednesday showed bullish trade setup on the counters of Tata Motors, IDFC, HDFC Life Insurance, NHPC, SBI Life Insurance, JK Paper, Granules India, Take Solutions, Mirc Electronics, Borosil Renewables, Wockhardt, Indian Hotels Company, BEML, Dr. Reddy’s Labs, Jain Irrigation, Amara Raja Batteries, Info Edge (India), Prestige Estates Projects, Deepak Nitrite, Rajesh Exports, Vinati Organics, TTK Prestige, Allcargo Logistics, Hindustan Motor, Technocraft Industries, Page Industries, Vardhman Special Steels, MRF, Amrutanjan Health Care, Hindustan Food, Oriental Hotels, N R Agarwal Industries and SIL Investments.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Bharat Heavy Electricals, Indian Oil Corporation, National Aluminium Company, Hindustan Petroleum, Jammu & Kashmir Bank, Gujarat Mineral Development, Balkrishna Industries, UCO Bank, Narayana Hrudayalaya, Bajaj Auto, Varroc Engineering, GSFC, Polycab India, Bosch, JBM Auto, Ingersoll Rand, Nesco, Kaya, Omax Auto, Indostar Capital Finance, Ganesh Housing Corporation, Oriental Carbon, TTK Healthcare, GeeCee Ventures and D P Abhushan.
Wednesday’s most active stocks
Tata Steel (Rs 3753.56 crore), Tata Motors (Rs 2878.16 crore), SBI (Rs 1984.67 crore), Bharti Airtel (Rs 1692.00 crore), RIL (Rs 1677.96 crore), HDFC Bank (Rs 1450.49 crore), Bajaj Finserv (Rs 1355.17 crore), Bajaj Finance (Rs 1333.17 crore), HDFC (Rs 1324.70 crore) and ICICI Bank (Rs 1299.25 crore) were among the most active stocks on Dalal Street on Wednesday in value terms.
Wednesday’s most active stocks in volume terms
PNB (Shares traded: 20.26 crore), SAIL (Shares traded: 11.94 crore), Vodafone Idea (Shares traded: 11.67 crore), Tata Motors (Shares traded: 8.84 crore), YES Bank (Shares traded: 7.08 crore), Motherson Sumi (Shares traded: 5.64 crore), Tata Power (Shares traded: 5.44 crore), Tata Steel (Shares traded: 5.37 crore), SBI (Shares traded: 5.05 crore) and ITC (Shares traded: 4.27 crore) were among the most traded stocks in the session.
Stocks showing buying interest
TTK Prestige, Affle (India), IIFL Finance, Motherson Sumi and Graphite India witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Wednesday signalling bullish sentiment.
Stocks seeing selling pressure
Ahlada Engineers and Valiant Organics witnessed strong selling pressure in Wednesday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls
Overall, market breadth remained in favour of bulls. As many as 228 stocks on the BSE 500 index settled the day in green, while 266 settled the day in red.
Podcast: Midcap stocks to bet on during this consolidation phase >>>
A late rebound on Wednesday helped benchmark indices cut losses, as they settled flat after a seesaw trade. For the day, Nifty ended flat, just above the 15,100-mark.The 30-pack Sensex staged a 460-point recovery in afternoon trade to eventually settle 20 points lower. We spoke to Rusmik Oza of Kotak Securities to understand his views on the market
