Here’s how analysts read the market pulse:
Mazhar Mohammad of Chartviewindia.in said Nifty will need to sustain above the gap zone of 16,176-16,146 to retain the positive bias. “If the bulls manage to defend the said support, a higher target towards 16,700 can be expected,” he said.
Independent analyst Manish Shah said while the Nifty50 formed a long bullish candle, the midcap index made a bearish candle. “Any small pullback towards the 15,960-16,000 zone is going to be an opportunity to buy in this market,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Thursday’s action:
Wall St falls as banks, industrials stocks tank
Wall Street’s main indexes fell on Wednesday as concerns around slowing economic growth and fresh COVID-19 fears hit economically-sensitive sectors, including banks and industrials. At 9:35 a.m. ET, the Dow Jones Industrial Average was down 146.24 points, or 0.42 per cent, at 34,970.16. The S&P 500 was down 11.93 points, or 0.27 per cent, at 4,411.22, while the Nasdaq Composite was down 10.20 points, or 0.07 per cent, at 14,751.10.
Earnings power European stocks to new highs
European shares ended at fresh highs on Wednesday with technology stocks hitting a 20-year peak, while optimism over the second-quarter earnings season continued to feed into positive sentiment. The pan-European STOXX 600 index rose 0.6 per cent to a record high of 468.22 points, extending its record-setting run to the third day.
Tech View: Nifty50 bulls take a breather
Nifty50 on Wednesday topped the 16,250-mark on a closing basis. The NSE barometer has been forming higher highs and lows for a few days and this was the third straight day when the index witnessed a gap-up start. Analysts are positive on the index prospects, but were quick to point to that Wednesday’s advance-decline ratio was skewed in favour of the bears. Besides, the index saw some profit-taking around the 16,300 level, which was deemed as immediate resistance for Nifty. Analysts do not rule out any short-term fall but said any decline should be bought into.
F&O: Easing VIX boosts bullish momentum
India VIX fell 3.91 per cent from 13.74 to 13.21 levels. Stability in volatility indicates that the bulls are holding up the market to cheer the fresh momentum. Options data suggested a broader trading range between 16,000 and 16,600 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Bank of Baroda,
, Coal India, , Kotak Mahindra Bank, ICICI Pru Life, Apollo Tyres, HDFC Life Insurance, NLC India, , PTC India, Filatex India, Nippon Life AMC, Uflex, SMS Pharmaceuticals, Jindal Poly Films, Hester Biosciences, P&G Health and Kalyani Investment.
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 Indiabulls Housing Finance, Coforge, IDFC, Dabur India, Bombay Dyeing, Pennar Industries,
, HT Media, Grasim Industries, Crompton Greaves, CARE Ratings, Rossell India, Puravankara, , Kalpataru Power, VIP Clothing, UFO Moviez India, Persistent Systems, Birla Corporation, Apollo Hospitals, Tata Metaliks, TCPL Packaging, Asian Hotels (North) and Dynamatic Technology. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
SBI (Rs 5,904.39 crore), Coforge (Rs 3,533.72 crore), HDFC (Rs 2,542.94 crore), ICICI Bank (Rs 2,039.38 crore), HDFC Bank (Rs 1,613.18 crore), Tata Steel (Rs 1,609.22 crore), RIL (Rs 1,278.28 crore), Bharti Airtel (Rs 1,237.63 crore), Kotak Bank (Rs 1,212.54 crore) and Infosys (Rs 1,114.36 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: 127.25 crore), Suzlon Energy (Shares traded: 16.03 crore), SBI (Shares traded: 12.98 crore), YES Bank (Shares traded: 9.31 crore), PNB (Shares traded: 7.96 crore), JP Power (Shares traded: 7.01 crore), Bank of Baroda (Shares traded: 6.51 crore), SAIL (Shares traded: 6.10 crore), Trident (Shares traded: 5.91 crore) and Tata Steel BSL (Shares traded: 4.28 crore) were among the most traded stocks in the session.
Stocks showing buying interest
IIFL Wealth Management, Trident, Vardhman Textiles, Orient Refractories, and Godrej Industries witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Akg Exim, Suryoday Small Finance Bank and Vodafone Idea 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 137 stocks on the BSE500 index settled the day in green, while 361 settled the day in the red.
Podcast: Post stellar rally, will FPIs return to D-Street?
The market has managed to gain nearly 1,500 points in two days, touching all-time high levels. Post the stellar rally, will FPIs return to D-Street now? Will the market take a breather from here or surge more? What are the technical charts suggesting?
