The headline index Nifty moved in a range of 88 points and fell below the crucial 15,700 level to form a bearish candle on the daily chart. Analysts said, Nifty may find support near its next psychological level of 15,650-600.
Here’s how analysts read the market pulse:
Gaurav Ratnaparkhi of Sharekhan, said, each leg of the decline is getting smaller and this indicates selling exhaustion. “With the current decline, the Nifty50 has come down to test the swing low of 15,673. Though the level was breached on an intraday basis, the index managed to stay above it on a closing basis,” he said.
Mazhar Mohammad of Chartviewindia.in, said, Nifty may fall further if the bulls fail to reinstate the index above the 15,700 level on Friday. “For time being traders are advised to remain short and look for a target of 15,550 with a stop above 15,700 on a closing basis,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Friday’s action:
Wall Street scales fresh peak
The S&P 500 index kicked off the second half of the year at record levels on Thursday after data showed fewer-than-expected weekly jobless claims, while Walgreens gained after it lifted its annual profit outlook. The index climbed up 11.10 points, or 0.26 per cent, to 4,308.60, after hitting a record high of 4,310.25. The Dow Jones Industrial Average rose 67.01 points, or 0.19 per cent, to 34,569.52. The Nasdaq Composite moved 13.21 points, or 0.09 per cent, higher to 14,517.16, after coming within 2 points of its all-time high of 14,535.97.
European stocks near record high
European stock markets jumped with equities brushing off a rapid re-acceleration in coronavirus cases and oil and the dollar extending their first-half rallies. London, Frankfurt, Paris and Milan overcame a midmorning wobble to keep the pan-European STOXX 600 reaching for a record high. The pan-European STOXX 600 index rose 0.53 per cent and MSCI’s gauge of stocks across the globe gained 0.13 per cent.
Tech View: Further weakness likely for Nifty50
The Nifty50 index breached its immediate support at 15,700 and ended up forming a bearish candle on the daily scale. The NSE barometer, which has been making lower lows for four sessions, may find some support in the 15,650-600 range, said analysts.
Check out the candlestick formations in the latest trading sessions
ETMarkets.comF&O: Nifty negates higher lows of last 3 sessions
India VIX fell 2.97 per cent from 13.40 to 13 level. The fear gauge failed to move above 16-16.50 zone in the last three weeks and hovered near the lowest level of last 17 months. Lower volatility indicates an overall bullish market bias, but a small bounce in VIX can give some volatile cues to the market.
Stocks showing bullish bias
Stocks showing bullish bias: Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Jain Irrigation, Jindal Saw, Suzlon Energy, NOCIL, Dabur India, HBL Power Systems, Manappuram Finance, Welspun India, Aurobindo Pharma, Sakar Healthcare, Eris Lifesciences, Heritage Foods, Menon Bearings, Star Cement, PPAP Automotive, Divi’s Lab, GSS Infotech, Dr. Lal Pathlabs, SRF, Shanthi Gears, Unichem Labs, SKF India, IIFL Wealth Management and The United Nilgiri.
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 Spicejet, HDFC Bank, SREI Infrastructure, IRB Infrastructure, Bandhan Bank, Greaves Cotton, Tata Consumer Products, Jai Corp, Tech Mahindra, Indian Hotels, SPIC, Patel Engineering, KRBL, Piramal Enterprises, Britannia Industries, Dhanlaxmi Bank, Thyrocare Tech, Refex Industries, Archies, BF Utilities, Jagran Prakashan, Triveni Turbine, Shoppers Stop, UltraTech Cement, BPL, PI Industries, Mastek, ABB India, India Power Corp, Kalyani Steel, Esab India and Shradha Infraproject. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
Happiest Minds (Rs 2,105.95 crore), Info Edge (Rs 1,842.84 crore), HDFC Bank (Rs 1,261.08 crore), RIL (Rs 1,220.19 crore), Tata Motors (Rs 962.64 crore), Infosys (Rs 753.70 crore), SBI (Rs 680.35 crore), Bajaj Finance (Rs 670.57 crore), ICICI Bank (Rs 666.34 crore) and Tata Steel (Rs 654.96 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.
Most active stocks in volume terms
Vodafone Idea (Shares traded: 64.37 crore), PNB (Shares traded: 7.93 crore), JP Power (Shares traded: 7.91 crore), YES Bank (Shares traded: 7.05 crore), IOB (Shares traded: 4.43 crore), SAIL (Shares traded: 4.27 crore), GMR Infra (Shares traded: 4.25 crore), Shree Renuka Sugars (Shares traded: 3.61 crore), Rattan India Power (Shares traded: 3.57 crore) and Central Bank of India (Shares traded: 3.32 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Happiest Minds, KEI Industries, Eris Lifesciences, Lux Industries and eClerx Services witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Krishna Institute of Medical Sciences, Shivalik Bimetal Controls and Uttam Galva Steels witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bears
Overall, the market breadth remained in favour of the bears. As many as 236 stocks on the BSE500 index settled the day in the green, while 257 settled the day in the red.
Podcast: Will time-wise correction on D-Street last long? >>>
Will the current time-wise correction last for a long time on Dalal Street? We asked our expert. Also, July looks set to see a flurry of IPOs. What should investors do?
