Though Nifty witnessed some pressure at higher levels, it managed to take out the 15,300 level that was acting as an immediate resistance. The index formed a small bullish candle on the daily chart and made higher highs and lows for the fourth straight session. Will Nifty manage to scale previous highs on the day of monthly and derivative expiry?
Here’s how analysts read the market pulse:-
Aditya Agarwala of YES Securities said that the index can test levels of 15,400-15,450 levels on a sustained trade beyond the 15,335 level. “On a shorter time frame chart, the RSI has started forming negative divergences, which indicate that the uptrend is losing momentum. A failure to sustain beyond 15,335 may trigger profit booking to levels of 15,200-15,150,” he said.
Ruchit Jain, Senior Analyst – Technical and Derivatives, Angel Broking, said, Nifty may march higher towards 14,335 and may hit new highs very soon. “With this gradual advance, the supports are shifting higher and now the immediate supports are placed around 15,235 and 15,163. We continue with our advice for traders to continue with a positive bias and look for buying opportunities on intraday declines,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Thursday’s action:
US shares rise as Fed soothes inflation worries
Wall Street’s main indexes rose marginally on Wednesday after remarks from the Federal Reserve helped ease worries about higher inflation, while a recent dip in bond yields supported heavyweight tech-related stocks for a third straight session. At 9:25 p.m. IST, the Dow Jones Industrial Average was up 66.58 points, or 0.19%, at 34,378.57, the S&P 500 was up 10.12 points, or 0.26%, at 4,199.03, and the Nasdaq Composite was up 81.28 points, or 0.60%, at 13,738.62.
European shares rise as central banks pledge easy money
European stocks held near all-time highs on Wednesday as a host of central bank policymakers pledged to keep monetary policy loose despite recent signs of an uptick in inflation. At 9:25 p.m. IST, the pan-European STOXX 600 index was up 0.2%, with gains in travel and leisure stocks offsetting losses in banks.
F&O: VIX falls below 19 level
India VIX fell down by 1.50 per cent from 19.13 to 18.84 levels. India VIX needs to hold below 20 zones to extend the bullish market momentum towards new lifetime territory. On the option front, Maximum Put Open Interest was seen at 15,000 level followed by 14,500, while maximum Call OI was seen at 15,500 level followed by 15300. Call writing was seen at 15,300 and 15,350 strike, while Put writing was seen at 15,200 then 15,100 levels. Option data suggests a trading range between 15,000 and 15,400 levels.
Tech View: Nifty eyes record high levels
Nifty50 on Wednesday took out its immediate resistance of 15,300 level. Analysts said a sustained rise above the 15,335 level could push the 50-pack index towards record-high levels. Any intraday dip should be bought into, they said. Support levels are shifting higher, said Ruchit Jain of Angel Broking, who sees immediate support for the index at 15,235 and 15,163 levels. This analyst has advised traders to continue with a positive bias and look for buying opportunities on intraday declines.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Himadri Speciality, Just Dial, Bodal Chemicals, Sun TV Network, Indoco Remedies, Cerebra Integrated, Rolta India, Laurus Labs, Triveni Turbine, Alembic, Borosil, Aditya Birla Fashion, Sonata Software, Pil Italica Lifestyle, Coforge, Bajaj Finserv, S H Kelkar & Company, GE T&D India, Ramkrishna Forgings,
, Gujarat State Petronet, Vertoz Advertising, Panacea Biotec, Maheshwari Logistics, Krebs Biochemicals, Bharat Road Network, Tanla Platforms, ABB Power Products, Accelya Solutions, Creative Peripherals, Sasken Technologies, SML Isuzu and Xpro 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 Union Bank of India, LT Foods, Adani Ports & SEZ, Cholamandalam Investment, Brightcom Group, CG Power and Industries,
, Gujarat Mineral Development, FACT, PTC India, MCX, Mukand, Advanced Enzyme Tech, , EPL, Igarashi MotorsKalyani Steel, Torrent Pharma, Ramco Industries, Aries Agro, Plastiblends Industries, Vardhman Textiles, Clariant Chemicals, Sastasundar Ventures, Fine Organic Industries, BSL, Repco Home Finance, Steel City Securities, Lotus Eye Hospital, Ashima, Excel Industries, Rane (Madras), MMP Industries, Abbott India, Jash Engineering and Aarvee Denims. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Wednesday’s most active stocks in value terms
SBI (Rs 2,174.98 crore), Tata Steel (Rs 1,670.86 crore), Bajaj Finance (Rs 1,668.31 crore), JSW Steel (Rs 1,276.75 crore), Bajaj Finserv (Rs 1,185.72 crore), Infosys (Rs 949.96 crore), ICICI Bank (Rs 942.19 crore), Tata Motors (Rs 909.53 crore), HDFC Bank (Rs 908.17 crore) and Just Dial (Rs 845.65 crore) were among the most active stocks on Dalal Street in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.
Wednesday’s most active stocks in volume terms
PNB (Shares traded: 15.53 crore), Dish TV India (Shares traded: 11.74 crore), JP Associates (Shares traded: 11.18 crore), YES Bank (Shares traded: 11.01 crore), JP Power (Shares traded: 9.95 crore), BHEL (Shares traded: 8.17 crore), Vodafone Idea (Shares traded: 7.48 crore), SAIL (Shares traded: 6.71 crore), GTL Infra (Shares traded: 5.80 crore) and GMR Infra (Shares traded: 5.77 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Lux Industries, Sonata Software, Wockhardt, Bajaj Finserv and ABB Power witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
DSJ Communications, LCC Infotech, Moksh Ornaments, Sundaram Finance RE and SMC Global Securities 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, the market breadth remained in favour of bulls. As many as 275 stocks on the BSE500 index settled the day in the green, while 221 settled the day in the red.
Podcast: How should investors deploy their idle money? >>>
Market is again moving towards its all-time high levels. Should they still deploy fresh money in the market or wait for a correction now? Where is Nifty50 headed? What are Nifty Bank charts suggesting?
