Rohit Singre, Senior Technical Analyst at LKP Securities said, “Going forward, the index has good support at 15,000-mark. If it fails to hold above that, then some profit booking can be seen. On the higher side, 15,150-15,200 zone will be the stiff hurdle.”
“Excessive volatility in the global markets, mainly due to the rise in the bond yields, is impacting sentiment on the domestic front too. We don’t expect any relief from that anytime soon. We reiterate our cautiously optimistic view on markets and suggest preferring hedged positions instead of outrights,” said Ajit Mishra, VP – Research, Religare Broking.
That said, here’s a look at what some of the key indicators are suggesting for Friday’s action:
US stocks weighed down by tech shares
The S&P 500 and the Nasdaq slipped in choppy trading on Thursday as jittery investors looked to remarks from Federal Reserve Chair Jerome Powell on rising bond yields, while data pointed to a staggering recovery in the labor market. The Dow Jones Industrial Average rose 57.06 points, or 0.18%, to 31,327.15, the S&P 500 lost 5.80 points, or 0.15%, to 3,813.92 and the Nasdaq Composite lost 106.99 points, or 0.82%, to 12,890.76.
European shares fall on rising yield
A three-day rally in European stocks was clipped on Thursday as a renewed jump in U.S. bond yields hit risk appetite, with heavyweight miners and technology stocks leading the retreat. The pan-European STOXX 600 index fell 0.63%, with miners dropping 3.4%. UK-listed shares of Rio Tinto and BHP Group shed 5.9% and 5.0% respectively, after their Australia-listed stocks were hit by ex-dividend trading.
Tech View: Nifty likely to consolidate now
Nifty50 snapped a three-day winning streak on Thursday, but managed to defend the crucial support at 15,000 level on a closing basis. The index ended up forming an indecisive candle on the daily chart, with a long upper wick, which suggested that the intraday recovery got sold into. Mazhar Mohammad of Chartviewindia.in said it was heartening to see Nifty50 take support and stabilise around the psychologically important 15,000 mark.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com
F&O: VIX turning highly volatile
India VIX moved up 9.33 per cent from 22.09 to 24.15 levels. VIX is turning highly volatile in the broader range between 21.80 and 29.64 levels for last eight sessions. The VIX has cooled down below the 21-20 zone as required for the bullish grip to continue. Call writing was seen at strike price 15,000 while there was Put writing at 15,000 and 14,600 levels. Options data suggested a wider trading range between 14,800 and 15,700 levels, while the immediate range lay between 14,900 and 15,400 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Thursday showed bullish trade setup on the counters of Ujjivan SmallFinance, Tata Motors, Federal Bank, Dish TV India, NHPC, Apollo Tyres, Wipro, Karnataka Bank, Equitas Holdings, Shiva Cement, Ambuja Cements, Grasim Industries, Bharat Forge, Dabur India, Arvind Fashions, Dr. Reddy’s Labs, ACC, Amara Raja Batteries, Inox Leisure, L&T Infotech, Torrent Pharma, Atul Ltd and Vadilal Enterprises.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Union Bank of India, Bank of Maharashtra, IndusInd Bank, Punjab & Sind Bank, D-Link (India), Reliance Industries, Redington (India), SIS Ltd, Brigade Enterprises, Sundaram Fasteners, KDDL, Thangamayil Jewellery, ASM Technologies and Lakshmi Mill.
Thursday’s most active stocks
RIL (Rs 287.85 crore), Infosys (Rs 232.39 crore), HDFC Bank (Rs 208.76 crore), Tata Motors (Rs 178.28 crore), HDFC (Rs 165.78 crore), Laurus Labs (Rs 147.91 crore), Adani Ports SEZ (Rs 119.17 crore), TCS (Rs 113.08 crore), SBI (Rs 112.92 crore) and Axis Bank (Rs 101.35 crore) were among the most active stocks on Dalal Street on Thursday in value terms.
Thursday’s most active stocks in volume terms
Vodafone Idea (Shares traded: 4.64 crore), YES Bank (Shares traded: 2.48 crore), Reliance Power (Shares traded: 2.32 crore), PNB (Shares traded: 2.00 crore), Reliance Communication (Shares traded: 1.89 crore), BHEL (Shares traded: 1.69 crore), Suzlon Energy (Shares traded: 0.99 crore), Trident (Shares traded: 0.93 crore), Tata Power (Shares traded: 0.92 crore) and JP Power (Shares traded: 0.87 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Equitas Small Finance Bank, Indiabulls Real Estate, Adani Power, Gland Pharma and Dilip Buildcon witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Thursday signalling bullish sentiment.
Stocks seeing selling pressure
Arvind Fashions, BCL Industries, SMC Global Securities and Patel Integrated – Rights Entitlement witnessed strong selling pressure in Thursday’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 270 stocks on the BSE 500 index settled the day in green, while 226 settled the day in red.
Podcast: How investors can deal with high market volatility >>>
Bulls’ attempt to push back the bears after the initial battering failed, as the former gave in to global worries over rising US bond yields and inflation. The BSE Sensex declined nearly 600 points to sub-51,000 level and ended its three-day winning streak. The NSE Nifty shed just over 1 per cent to sub-15,100 level. We spoke to Vinod Nair of
to share his views on the market.
