Here’s how analysts read the market pulse:-
Mazhar Mohammad of Chartviewindia.in advised positional traders with high-risk appetite to consider fresh longs if Nifty50 sustains above the 15,900 level for at least an hour. “Look for a target of 16,200 by placing a stop loss below the intraday low,” he said.
Gaurav Ratnaparkhi of Sharekhan said Nifty is once again staring at the upper end of the consolidation range at 15,900. “The bulls need to cross this barrier on a closing basis in order to confirm the next leg up, which will then take the index to 16,400 level in the short term,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Thursday’s action:
S&P 500 climbs to new record high
The S&P 500 index hit a record high on Wednesday after comments from the Federal Reserve fueled hopes the central bank would stick to its accommodative monetary policy despite a sharp jump in inflation last month. At 9:51 a.m. ET, the Dow Jones Industrial Average was up 127.43 points, or 0.37 per cent, at 35,016.22, the S&P 500 was up 18.37 points, or 0.42 per cent, at 4,387.58 and the Nasdaq Composite was up 69.93 points, or 0.48 per cent, at 14,747.58.
Global stocks rebound on Powell’s dovish remarks
A gauge of global stocks prices rose on Wednesday and bond yields edged lower after U.S. Federal Reserve Chair Jerome Powell reassured investors an inflation spike will be transitory, although it may linger for a while. MSCI’s all-country world index rose 0.2 per cent after matching Tuesday’s record intra-day high of 728.77. The broad pan-European FTSEurofirst 300 index slid 0.06 per cent and other equity indices in Europe were also lower.
F&O: India VIX eases a little
India VIX fell 0.24 per cent from 12.62 to 12.59 level. A decline in the VIX has again provided stability to the market to commence the next move. On the options front, maximum Put Open Interest stood at 15,500 level followed by 15,000 while maximum Call OI was seen at 16,000 level followed by 15,800.
Check out the candlestick formations in the latest trading sessions
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Tech View: Nifty next stop at 15,900
Nifty50 on Wednesday topped the 15,850 level at the close after taking support near the 15,750 level. The index formed a bullish candle on the daily chart. It was the third session when the index made a higher high-low formation, as supports shifted higher. “The bias remains positive,” said Rajesh Palviya of Axis Securities, who noted that the index is approaching its 4-6 weeks multiple resistance at 15,900 level.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of ITC, Uttam Galva Steels, NTPC, Motherson Sumi Systems, Max India, L&T, UFO Moviez India, Sun Pharma, Jagran Prakashan, Voltas, Minda Corporation, Ceat, Vinyl Chemicals, MEP Infrastructure, VIP Clothing, Coforge, Parag Milk Foods, Ginni Filaments, Shalimar Paints, Tata Communications, Texmaco Infrastructure, Shree Digvijay, Suven Life Sciences, Umang Dairies, Waterbase, Ganges Securities, GSS Infotech, Century Plyboards, Indo National and Satin Creditcare, among others.
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 Indian Hotels, Lemon Tree Hotels, Max Healthcare, Dabur India, JK Paper, Oil India, Texmaco Rail, ICICI Securities, Escorts, Chalet Hotels, Info Edge (India), Pidilite Industries, Pitti Engineering, West Coast Paper, Srikalahasthi Pipes, Newgen Software Tech, Gufic BioSciences, Spandana Sphoorty, Kopran, Incredible Industries, Banaras Beads and Remsons Industries. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
MindTree (Rs 2,230.46 crore), Wipro (Rs 1,617.05 crore), Happiest Minds (Rs 1,210.42 crore), Just Dial (Rs 1,037.16 crore), Tata Steel (Rs 1,030.44 crore), Adani Ports SEZ (Rs 969.26 crore), Infosys (Rs 885.62 crore), RIL (Rs 823.01 crore), ICICI Bank (Rs 772.87 crore) and HDFC Bank (Rs 734.24 crore) were among Wednesday’s most active stocks on Dalal Street in value terms. Higher activity on a counter in value terms can help identify the counters with the highest trading turnovers in the day.
Most active stocks in volume terms
JP Power (Shares traded: 7.67 crore), Vodafone Idea (Shares traded: 5.37 crore), Suzlon Energy (Shares traded: 4.78 crore), Vikas Multicorp (Shares traded: 4.78 crore), Vikas Ecotech (Shares traded: 4.16 crore), JM Financial (Shares traded: 4.13 crore), NMDC (Shares traded: 3.85 crore), YES Bank (Shares traded: 3.69 crore), Bank of Baroda (Shares traded: 3.49 crore) and Wipro (Shares traded: 2.93 crore) were among Wednesday’s most traded stocks during the session.
Stocks showing buying interest
CAMS, JM Financial, Happiest Minds, Gujarat Fluorochem and Mphasis witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Moksh Ornaments and SVP Global Ventures 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 209 stocks on the BSE500 index settled the day in the green, while 286 settled the day in the red.
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