Rohit Singre, Senior Technical Analyst at LKP Securities said, “Nifty retraced from its strong hurdle zone of 15,000-mark. Previously, too, we witnessed profit booking from the same levels. If we fail to sustain above 15,000-mark, we may see a sort of profit booking in the coming sessions towards the immediate support zone of 14,800-14,750 zone.”
“We might see further consolidation after the recent up move. However, the bias would remain on the positive side. On the earnings front, participants will be closely eyeing the numbers from Reliance industries on Friday. Meanwhile, we suggest using dips to add quality stocks from banking, pharma and metal space,” said Ajit Mishra, VP – Research at Religare Broking.
That said, here’s a look at what some of the key indicators are suggesting for Friday’s action:
US stocks hit record highs on tech earnings boost
The S&P 500 and Nasdaq indexes hit record levels on Thursday after stellar earnings from Apple and Facebook powered a rally in tech stocks, while upbeat economic data supported bets of a swifter economic recovery. The Dow Jones Industrial Average was up 132.64 points, or 0.39%, at 33,953.02, the S&P 500 was up 29.45 points, or 0.70%, at 4,212.63 and the Nasdaq Composite was up 105.39 points, or 0.75%, at 14,156.42.
European shares fall marginally after nearing record high
European stocks edged back lower after nearing record-highs on Thursday after a slew of upbeat earnings reports and the US Federal Reserve’s pledge to stick to loose monetary policy. The pan-European STOXX 600 index fell 1.13% to 438.79 points, marginally below its record peak of 443.61.
Tech View: Nifty may enter a brief consolidation
Nifty on Thursday saw selling pressure after taking out the 15,000 level in intraday trade. The NSE barometer eventually eked out marginal gains, but formed its first bearish candle on the daily chart in six sessions. During the session, the index respected its 50-day simple moving average, whose value was placed at 14,793 level. It also continued to form higher highs and lows for the fifth session. Analysts said Nifty can see a brief consolidation in the 14,700-15,000 range in the coming days before it moves higher.
Check out the candlestick formations in the latest trading sessions
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F&O: Rising VIX is a worry
India VIX moved up 3.21% from 22.58 to 23.30 levels. India VIX needs to hold below 20 level to again attract a bullish stance, while constant volatility is providing a ‘buy on decline’ opportunity in the market. Since, it is the beginning of new series, options data lay scattered at different strike prices. On the options front, maximum Put OI stood at 14,000 followed by 13,500 levels while maximum Call OI was seen at 15,000 and 15,500 levels. Options data suggested a wider trading range between 14,500 and 15,500 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Thursday showed bullish trade setup on the counters of Tata Motors, BHEL, Hindalco,
, Apollo Tyres, Bandhan Bank, Bank of India, Au Small Finance Bank, MOIL, HEG, Tata Metaliks, Deepak Fertilisers, Mphasis, Oil India and IRB Infrastructure.
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 Cipla,
, Pricol, Alembic Pharma, Natco Pharma, 63 Moons Technologies, Zydus Wellness, Venus Remedies, Page Industries, KDDL, AGC Networks and Abbott India. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Thursday’s most active stocks
Tata Steel (Rs 4542.34 crore), JSW Steel (Rs 4002.13 crore),
(Rs 3948.79 crore), SBI (Rs 2300.91 crore), ICICI Bank (Rs 2139.76 crore), Bajaj Finserv (Rs 1862.82 crore), Axis Bank (Rs 1860.91 crore), HDFC Bank (Rs 1783.19 crore), RIL (Rs 1626.63 crore) and SAIL (Rs 1568.42 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: 15.56 crore), SAIL (Shares traded: 14.44 crore), Yes Bank (Shares traded: 13.56 crore), PNB (Shares traded: 12.71 crore), NALCO (Shares traded: 8.20 crore), SBI (Shares traded: 6.37 crore), JSW Steel (Shares traded: 5.68 crore), Morepen Labs (Shares traded: 5.31 crore), Bank of Baroda (Shares traded: 5.10 crore) and Tata Steel (Shares traded: 4.47 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Jubilant Ingrevia, JSW Steel, SAIL, Tata Steel BSL and ABB Power witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Thursday signalling bullish sentiment.
Stocks seeing selling pressure
AKG Exim, Infibeam Avenues, Supreme Engineering, Suvidhaa Infoserve and LCC Infotech witnessed strong selling pressure in Thursday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bears
Overall, market breadth remained in favour of bears. As many as 207 stocks on the BSE 500 index settled the day in green, while 290 settled the day in red.
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The bulls and the bears fought hard, but none gained upper hand. The F&O-induced volatility meant benchmarks traded in a wide range, but the close for the day was nothing to write home about. Sensex after claiming the 50,000 mark saw selling pressure. After gyrating some 840 points, the index ended up rising merely 32 points. Nifty too saw selling after taking out its immediate resistance of 15,000 level. It could not even close above 14,900. We spoke to Mr Vinod Nair of Geojit Financial Services to share his views on the market.
