Mazhar Mohammad of Chartviewindia.in said, “Unless Nifty swiftly registers a close above 14,300, the possibility of slipping towards 13,950 remains higher. In case the bulls manage a close above 14,300, a sideways move with slightly positive bias can be expected. Upsides for time being remain capped at 14,530 level.”
“We maintain our cautious stance for the markets in the near term as increasing restriction would adversely impact economic activities,” said Ajit Mishra, vice president of research at Religare Broking.
That said, here’s a look at what some of the key indicators are suggesting for Thursday’s action:
US stocks snap two-day fall
The S&P 500 and the Dow Jones indexes were higher on Wednesday after sliding for two straight sessions, while the Nasdaq remained muted as Netflix kicked off quarterly earnings for technology behemoths with a disappointing report. The Dow Jones Industrial Average was up 145.52 points, or 0.43%, at 33,966.82, the S&P 500 was up 10.64 points, or 0.26%, at 4,145.58 and the Nasdaq Composite was up 7.89 points, or 0.06%, at 13,794.15.
European shares rebound on strong earnings
European stocks bounced back on Wednesday after their worst sell-off this year as optimism about a strong earnings season countered worries about a rapid rise in COVID-19 cases in some countries. The pan-European STOXX 600 index rose 0.4% after a blistering seven-week rally ran into a bout of profit-taking on Tuesday, when it fell 1.9%.
Tech View: Nifty defends 14,200-support
Nifty’s promising gap-up on Tuesday proved to be day’s high, as the index ended the session forming a bearish candle on the daily chart that resembled Bearish Belt Hold. During the day, the Nifty bulls struggled at 14,500 level, even as they defended the crucial support of 14,200 well. The face saving-act, however, did not impress analysts, who believe the index could soon breach the 14,200 level and trigger more weakness.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com
F&O: VIX needs to fall further
India VIX fell down by 0.24% from 22.48 to 22.42 levels. India VIX needs to hold below 20 level to again attract a bullish stance in the market. On the options front, maximum Put Open Interest stood at 14,000 followed by 13,500, while maximum Call OI was seen at 15,000 followed by 14,500 levels. There was Call writing at strike prices 14,500 and 14,700, while Put writing was seen at 13,500 and 13,900 levels. Option data suggested a wider trading range between 14,000 to 14,600 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Tuesday showed bullish trade setup on the counters of Tata Motors, Network 18 Media,
, Advanced Enzyme Tech, Dilip Buildcon, Ajanta Pharma, Astral Poly Technik, ABB India, Whirlpool of India, Page Industries, TTK Prestige and Wabco India.
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 Tata Steel,
, Biocon, HUL, Asian Paints, Dr. Lal Pathlabs, Coforge, Britannia, CDSL, Parag Milk Foods, Nestle India, Shree Cement and Atul Ltd. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Tuesday’s most active stocks
HDFC (Rs 1808.05 crore), Dr. Reddy’s (Rs 1798.88 crore), Tata Motors (Rs 1713.44 crore), HDFC Bank (Rs 1629.16 crore),
(Rs 1572.97 crore), Adani Ports SEZ (Rs 1553.96 crore), Cadila Healthcare (Rs 1540.63 crore), RIL (Rs 1513.85 crore), Tata Steel (Rs 1513.33 crore) and SBI (Rs 1377.80 crore) were among the most active stocks on Dalal Street on Tuesday in value terms.
Tuesday’s most active stocks in volume terms
PNB (Shares traded: 11.74 crore), Vodafone Idea (Shares traded: 9.23 crore), Yes Bank (Shares traded: 8.00 crore), Subex (Shares traded: 6.01 crore), Tata Motors (Shares traded: 5.67 crore), Morepen Labs (Shares traded: 5.07 crore), SBI (Shares traded: 4.13 crore),
(Shares traded: 3.67 crore), SAIL (Shares traded: 3.60 crore) and Tata Power (Shares traded: 3.56 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Supreme Petrochem, Apollo Hospital, Tata Consumer Products, Max Healthcare and J B Chemicals stocks witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Tuesday signalling bullish sentiment.
Stocks seeing selling pressure
AKG Exim, Taj GVK Hotels, Mittal Lifestyle, Jump Networks, Shradha Infraprojects and Suvidhaa Infoserve witnessed strong selling pressure in Tuesday’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 275 stocks on the BSE 500 index settled the day in green, while 217 settled the day in red.
Podcast: What triggered the big market U-turn? >>>
A strong start to the day was sold into, as benchmark indices settled half-a-per cent lower on what first appeared to be a promising day for the market. Sensex fell over 750 points from the day’s high and ended the day around 47,700 level, down 244 points. We spoke to Binod Modi of Reliance Securities to share his views on the market.
