Rohit Singre, Senior Technical Analyst at LKP Securities said, “Now with Nifty again reaching to its strong hurdle zone of 14,800-14,900 zone, there will be fresh breakouts only if Nifty sustains above the 15,000-mark because we have witnessed profit booking from the said levels in the recent past. Good support for Nifty is formed at 14,670-14,600 zone.”
“Biden’s decision to waive intellectual property rights on vaccines pumped in global optimism. Metal stocks continued to outshine other sectors as it kick-started its earning season on a better-than-expected note. Auto and IT were the other sectoral leaders while mid- and smallcap stocks mirrored the trend,” said Vinod Nair, Head of Research at Geojit Financial Service.
That said, here’s a look at what some of the key indicators are suggesting for Friday’s action:
US stocks slip as Covid-19 vaccine makers fall
The Nasdaq and the S&P 500 slipped on Thursday as vaccine makers fell after President Joe Biden announced plans to back intellectual property waivers on COVID-19 shots, but losses were capped by an upbeat jobless claims report. The Dow Jones Industrial Average was up 63.84 points, or 0.19%, at 34,294.18, the S&P 500 was down 3.95 points, or 0.09%, at 4,163.64 and the Nasdaq Composite was down 62.12 points, or 0.46%, at 13,520.30.
European shares hover near record high
European stocks inched higher on Thursday, hovering near record levels, as strong earnings reports from AB Inbev and several eurozone banks added to an upbeat mood sparked by solid economic data this week. The pan-European STOXX 600 index fell 0.27% after rising 0.1% ealrier. Food and beverage, utilities and chemical stocks led the gains.
Tech View: Nifty struggles with 50-DMA
Nifty50 on Thursday topped the 14,700 level and broke above the Inside Bar Candle that it had formed on the daily charts in the previous session. The index formed a higher low for the fourth straight session, but failed to close above its 50-day moving average. A move above the 14,740-750 range is a must for Nifty to retain its positive bias, said analysts. None of the technical oscillators are making a compelling case for a sustainable bounce at this point in time, said Mazhar Mohammad of Chartviewindia.in, who said the index is also struggling around its 50-day simple moving average.
Check out the candlestick formations in the latest trading sessions
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F&O: India VIX moves up marginally
India VIX moved up marginally by 0.34% from 21.96 to 22.03 level. It needs to hold below 20 zone to again attract bullish stance. On the options front, maximum Put Open Interest was seen at 14,000 level followed by 13,500 while maximum Call OI stood at 15,000 level followed by 15,500. There was marginal Call writing at strike price 14,800 while minor Put writing was seen at 14,200 and then 14,300 level. Options data suggested a wider trading range between 14,200 and 15,000 levels while the immediate trading range was seen at 14,500 and 15,000 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Thursday showed bullish trade setup on the counters of Hindalco, Aarti Drugs, Coforge, MindTree, Indraprastha Gas, Thyrocare Tech, Adani Green Energy, CSB Bank, Zuari Agro Chemicals, ACC, Torrent Pharma,
, KNR Constructions and BEML.
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 DCW, Phillips Carbon, CDSL, Eveready Industries, Info Edge (India),
, , RPG Life Sciences, APL Apollo Tubes, Vinati Organics, Apollo Pipes, Seya Industries, Bharat Bijlee and Greenlam Industries. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Thursday’s most active stocks
Tata Steel (Rs 5123.91 crore), Coforge (Rs 2090.28 crore), Cipla (Rs 1612.30 crore), JSW Steel (Rs 1340.28 crore), Tata Motors (Rs 1337.51 crore), RIL (Rs 1296.50 crore), SAIL (Rs 1292.51 crore), SBI (Rs 1286.64 crore), Wipro (Rs 1236.10 crore) and Bajaj Finance (Rs 1231.24 crore) were among the most active stocks on Dalal Street on Thursday in value terms.
Thursday’s most active stocks in volume terms
BHEL (Shares traded: 19.51 crore), Reliance Power (Shares traded: 13.86 crore), YES Bank (Shares traded: 12.27 crore), IDBI Bank (Shares traded: 11.93 crore), PNB (Shares traded: 11.43 crore), SAIL (Shares traded: 9.77 crore), Subex (Shares traded: 6.32 crore), Vodafone Idea (Shares traded: 6.01 crore), Reliance Communication (Shares traded: 5.06 crore) and Tata Steel (Shares traded: 4.64 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Coforge, Intellect Design, Wockhardt, Happiest Minds and Mphasis witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Thursday signalling bullish sentiment.
Stocks seeing selling pressure
Best Agrolife, Isgec Heavy Engineering, Suryoday SFB, Suvidhaa Infoserve, Sundaram Finance RE and Kalyan Jewellers witnessed strong selling pressure in Thursday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls
Overall, market breadth remained in favour of the bulls. As many as 280 stocks on the BSE 500 index settled the day in green, while 218 settled the day in red.
Podcast: What cues to watch out for in this volatile market? >>>
Domestic indices on Thursday closed near day’s highs amid buying in heavyweight banking and IT names. Sensex traded in a range of 400 points and eventually kissed the 49,000-mark, before closing the day at 48,950. The range for Nifty was restricted to 110 points, but the index managed a close above the 14,700 level. The two indices gained just above half-a-per cent each. We spoke to Vinod Nair of Geojit Financial Securities to share his views on the market.
