Here’s how analysts read the market pulse:-
Mazhar Mohammad of Chartviewindia.in said the technical oscillators are still in favour of the bears, raising doubts over the sustainability of the breakout. “A trade above the 15,855 level is a must for Nifty to retain its positive bias,” he said.
Independent analyst Manish Shah said if Nifty50 manages to close above the 15,930-15,950 range for the next two-three consecutive sessions, the breakout will be confirmed. “If the index drops below 15,840 level, we will have to rethink if there is a failure of the breakout,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Wednesday’s action:
Wall Street dips as earnings gather pace
US stock indexes fell on Thursday following the latest batch of quarterly corporate earnings reports, while data showed the number of Americans filing new claims for unemployment benefits fell last week as expected. At 9:47 a.m. ET, the Dow Jones Industrial Average was down 104.42 points, or 0.30 per cent, at 34,828.81, the S&P 500 was down 13.19 points, or 0.30 per cent, at 4,361.11 and the Nasdaq Composite was down 49.65 points, or 0.34 per cent, at 14,595.30.
European shares fall after late dip in US stocks
Europe’s share markets spluttered and government bond yields burrowed lower on Thursday after the head of the Federal Reserve dampened taper talk and traders struggled with the rapid global rise in COVID-19 Delta variant cases. Euro Stoxx 50 slipped by 1.07 per cent while FTSE 100 dipped 1.12 per cent.
F&O: India VIX eases further
India VIX fell 2.54 per cent from 12.59 to 12.27 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 was seen at 15,000 level followed by 15,500, while maximum Call OI was seen at 16,000 followed by 16,200 level. Options data suggested an immediate trading range between 15,700 to 16,000 level and then 16,200 level.
Check out the candlestick formations in the latest trading sessions
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Tech View: Nifty50 breaks above 15,900
Nifty50 on Thursday closed above the 15,900 level for the first time and broke above its consolidation range of 15,600-15,900 after 22 sessions. The index formed a small bullish candle on the daily scale and made higher highs and lows for the fourth straight session. Analysts said a breakout like this should ideally push the index to 16,200-16,400 zone in the coming days.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Wipro, PTC India Financial, HCL Technologies, JSW Energy, L&T Finance Holdings, DCB Bank, L&T Technology Services, PC Jeweller, UPL, Hindustan Zinc, L&T Infotech, MindTree, Pricol, Syngene International, Cyient, Alembic, Intellect Design, , Tera Software, ICICI Securities and Ramco Systems, 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 HFCL,
, Morepen Labs, DCW, Zee Media Corp, Indraprastha Gas, Coffee Day Enterprises, Dilip Buildcon, KCP Sugar, Ugar Sugar Works, Tourism Finance, , Bajaj Consumer Care, Uflex, Godrej Agrovet, Nelco, CCL Products India, Olectra Greentech, , Century Plyboards, Shoppers Stop, Archies, Orient Refractories, Kabra Extrusion, Indoco Remedies, Rama Steel Tubes and Elgi Rubber, among others. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
L&T Tech (Rs 1,965.75 crore), Wipro (Rs 1,779.16 crore), Infosys (Rs 1,585.10 crore), Happiest Minds (Rs 1,480.98 crore), L&T (Rs 1,455.69 crore), HCL Tech (Rs 1,309.18 crore), Tata Steel (Rs 1,210.45 crore), L&T Infotech (Rs 1,122.55 crore), Just Dial (Rs 931.21 crore) and RIL (Rs 909.85 crore) were among Thursday’s 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 ithe day.
Most active stocks in volume terms
YES Bank (Shares traded: 18.44 crore), Suzlon Energy (Shares traded: 8.71 crore), Vodafone Idea (Shares traded: 6.83 crore), Reliance Communication (Shares traded: 6.64 crore), JP Power (Shares traded: 5.34 crore), SAIL (Shares traded: 3.84 crore), PNB (Shares traded: 3.21 crore), Wipro (Shares traded: 3.11 crore), (Shares traded: 3.07 crore) and Bank of Baroda (Shares traded: 3.03 crore) were among Thursday’s most traded stocks in the session.
Stocks seeing buying interest
Sobha, L&T Tech, Happiest Minds, JSW Energy and Mastek witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling
bullish sentiment.
Stocks seeing selling pressure
Suryoday Small Finance Bank and SVP Global Ventures witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours the bulls
Overall, the market breadth remained in favour of the bulls. As many as 221 stocks on the BSE500 idex settled the day in the green, while 276 settled the day in the red.
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