The blue-chip NSE Nifty 50 index settled 0.08% lower at 22,434, while the BSE Sensex shed 0.04% to 73,877.
Here’s how analysts read the market pulse:
“The Nifty has been witnessing consolidation for the past three trading sessions. The momentum set-up on the daily and hourly time frames provides divergent signals and, hence, can lead to a consolidation in the near term. On the downside, 22,400-22,350 is acting as a support zone, while 22,500-22,530 is the immediate hurdle zone. A breach of the range on either side shall result in a trending move,” said Jatin Gedia of Sharekhan.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said, “We are of the view that the current market texture is still non-directional. For the bulls now, a fresh uptrend rally is possible only after the dismissal of 22,500. Above this level, the market could rally till 22,600-22,675. On the flip side, Wednesday’s low of 22,350 points would act as a sacrosanct support level for the traders. Below the same, it could trigger a short-term correction till 22,200-22,150.”
That said, here’s a look at what some key indicators are suggesting for Thursday’s action:
US market
US stock indexes reversed losses on Wednesday after softer-than-expected services sector data offered relief to investors worried about fewer-than-expected interest rate cuts from the Federal Reserve this year. The Institute for Supply Management’s non-manufacturing PMI came in 51.4 against expectations of 52.7 forecast by economists polled by Reuters.At 10:04 a.m. ET, the Dow Jones Industrial Average was up 110.70 points, or 0.28%, at 39,280.94, the S&P 500 was up 12.22 points, or 0.23%, at 5,218.03, and the Nasdaq Composite was up 14.53 points, or 0.09%, at 16,254.98.
European shares
European equities were little changed on Wednesday after data signalled inflation pressures in the region were softening but barely moved market expectations for the European Central Bank’s first rate cut.
The continent-wide STOXX 600 was flat at 1047 GMT. Rate-sensitive real estate stocks lost 0.3%, while banks gained 1.0%.
Data showed consumer price growth in the 20 nations sharing the euro currency slowed to 2.4% in March from 2.6% a month earlier as food, energy and industrial goods prices all pulled the headline figure lower. Economists polled by Reuters had expected no change to February’s figure.
Tech View: Doji small positive candle
While the Nifty 50 ended flat, it has formed a small positive candle on the daily chart with a gap down opening and with an upper shadow.
Technically this pattern indicates broader range movement in the market near all-time highs, said Nagaraj Shetti, senior technical research analyst at HDFC Securities.
“The smaller degree positive pattern like higher tops and bottoms is intact as per the daily chart and present weakness could be in line with the new higher bottom of the sequence. Hence, any weakness from here could be a buy on dips opportunity,” Shetti said.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of PNB, Laurus Labs, IDBI Bank, HLE Glascoat, Rallis India, and Indigo Paints, 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 P&G, and Caplin Point among others. A bearish crossover on the MACD on these counters indicates that they have just begun their downward journey.
Most active stocks in value terms
HDFC Bank (Rs 3,384 crore), Kotak Bank (Rs 2,203 crore), ICICI Bank (Rs 1,669 crore), TCS (Rs 1,565 crore), SBI (Rs 1,469 crore), Infosys (Rs 1,297 crore), and Axis Bank (Rs 1,227 crore) were among the most active stocks on NSE 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
Tata Steel (Shares traded: 5 crore), HDFC Bank (Shares traded: 2.3 crore), ONGC (Shares traded: 2.2 crore), NTPC (Shares traded: 2.1 crore), SBI (Shares traded: 1.9), ICICI Bank (Shares traded: 1.5 crore ), and Power Grid (Shares traded: 1.4 crore) were among the most traded stocks in the session on the NSE.
Stocks showing buying interest
Shares of Cochin Shipyard, JSW Energy, PNB, Laurus Labs, NALCO, and Linde India among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
No major stock hit 52-week lows on Wednesday.
Sentiment meter favours bulls
Overall, the market breadth favoured bulls as 2,777 stocks ended in the green, while 1,083 names settled with cuts.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
