Nifty managed to close above the crucial resistance level of 15,335 on a closing basis, forming a Doji candle on the daily chart. Analysts said the index may face some resistance as it inches towards its lifetime high levels. Will the bulls manage to take Nifty past its all-time high levels?
Here’s how analysts read the market pulse:-
Mazhar Mohammad of Chartviewindia. said that the index appears to be headed to test lifetime highs present at 15,431 level post a close above 15,336 level. “Thursday’s rise could be because of F&O expiry-related factors. It looks critical for Nifty50 to sustain above 15,272 levels to retain positive bias. The initial target for the index is at 15,431 level. Beyond that, the gains may get extended to the 15,650 level. If Nifty50 fails to sustain above 15,272 on a closing basis, expect it to slip into a corrective and consolidation phase,” Mohammad said.
Rohit Singre of LKP Securities sees support for the index at 14,275. Singre believes that any break below the said level may see more profit booking towards the 15,200 level. “A stiff hurdle is still in the 15,430-15,470 zone,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Friday’s action:
US shares gain as weekly jobless claims dip
The S&P 500 and the Dow rose on Thursday, helped by economy-linked stocks after data showing fewer weekly jobless claims bolstered optimism about a US economic recovery. At 9:15 p.m. IST, the Dow Jones Industrial Average was up 118.35 points, or 0.35%, at 34,441.73 and the S&P 500 was up 10.50 points, or 0.25%, at 4,206.31. The Nasdaq Composite was down 22.68 points, or 0.16%, at 13,760.03.
European shares hover below highs
European shares inched higher on Thursday, while German shares fell after shares in pharmaceuticals maker Bayer were hit by a court ruling. At 9:15 p.m. IST, the pan-European STOXX 600 index rose 0.24% to 446.31 points, just below Tuesday’s record high of 447.15.
F&O: VIX falls nearly 5%
India VIX fell by 4.60 per cent from 20.87 to 19.91 levels. India VIX needs to hold below 20 zones to extend the bullish market momentum towards new lifetime territory. Since it is the beginning of a new series, option data is scattered at different strikes. On the option front, Maximum Put Open Interest was seen at 14,000 level, followed by 14,500, while maximum Call OI was seen at 16,000, followed by 15,800 strike. Call writing was seen at 15,300 and 15,800 levels, while Put writing was seen at 15,000 level then 14,700. Option data suggests a trading range in between 15,000 to 15,800 levels.
Tech View: Nifty’s Doji formation suggests selling pressure
Nifty50 on Thursday made marginal gains, but closed above its crucial resistance level of 15,335 on a closing basis. The index made a Doji candle on the daily chart, which suggests indecisiveness among traders at higher levels. Analysts believe the index could face selling pressure near its lifetime high of 15,431.75 level in the coming days. They see the 15,250 level as immediate support for the index. The last three sessions had positive closes, but no urgency was seen on part of the bulls to give the index a big push that is usually associated with a breakout. “Nifty50 is now in the area of sellers. The size of the real bodies and volumes are also not showing any appreciable increase. Nifty needs to break above the resistance at 15,430 for the rally to continue. The breakout needs to be strong if the rally is to sustain. On the lower side, support is pegged at the 15,190 level. If Nifty50 breaks below 15,190-15,170, it could be time to get cautious in the market,” said independent analyst Manish Shah.
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 Tata Motors, Wipro, Indraprastha Gas, Nectar Lifesciences, MindTree, Shipping Corporation, Network 18 Media, Bharat Forge, Welspun Corp, IOL Chemicals, Syngene International, Info Edge (India), Greenpanel Industries, Coral India Finance, Shalby, TPL Plastech, Pressman Advertising, TTK Healthcare, Emami Paper Mill, Krishana Phoschem, Peninsula Land, Shree Cement, Spandana Sphoorty, Affle (India), Swelect Energy Systems, Sicagen India, MMP Industries, Agro Tech Foods, AGC Networks, Kirloskar Industries and GKW.
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 Bharat Electronics, Coal India,
, Trident, IDBI Bank, KPIT Technologies, FDC, Alembic, KRB, Pricol, Praj Industries, ICICI Lombard General Insurance, Torrent Power, Great Eastern, , Jagsonpal Pharma, CESC, Gufic BioSciences, Deepak Fertilisers, Nippon Life AMC, Dolat Investment, Ginni Filaments, Man Industries, Jayshree Tea, , Aptech, Caplin Point Lab, N R Agarwal Industries, Dharani Sugars, Sutlej Textiles, Vardhman Acrylics, IL&FS Investment, Elgi Rubber, Insecticides (India), Sagardeep Alloys, Grindwell Norton, Steel Strips Wheels, Kothari Products, , Nandan Denim, Kewal Kiran Clothing, Poddar Pigments, Akash Infra-Projects and JSW Holdings. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Thursday’s most active stocks in value terms
Adani Enterprises (Rs 4,869.40 crore), Adani Transmission (Rs 4,384.12 crore), Adani Gas (Rs 4,305.25 crore), HDFC (Rs 3,552.30 crore), SBI (Rs 3,081.03 crore), Tata Steel (Rs 2,491.90 crore), BPCL (Rs 2,451.91 crore), RIL (Rs 2,447.66 crore), SBI Cards (Rs 2,329.44 crore) and Chola Investment Finance (Rs 2,175.04 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.
Thursday’s most active stocks in volume terms
PNB (Shares traded: 51.18 crore), YES Bank (Shares traded: 21.13 crore), BEL (Shares traded: 12.01 crore), Vodafone Idea (Shares traded: 11.03 crore), Bank of Baroda (Shares traded: 10.62 crore), Zee Entertainment (Shares traded: 10.26 crore), SAIL (Shares traded: 7.62 crore), SBI (Shares traded: 7.34 crore), BHEL (Shares traded: 7.29 crore) and Suzlon Energy (Shares traded: 6.07 crore) were among the most traded stocks in the session.
Stocks showing buying interest
TTK Prestige, Sonata Software, Happiest Minds, Sterlite Tech and EIH witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Chaman Lal Setia Exports, DSJ Communications and Vikas Lifecare-RE witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls
Overall, the market breadth remained in favour of the bulls. As many as 272 stocks on the BSE500 index settled the day in the green, while 223 settled the day in the red.
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