The 50-pack index moved in a range of 156 points and formed a bullish candle on the daily chart. Analysts said the index could witness more selling pressure if it breaches the 15,600-15,550 level.
Here’s how analysts read the market pulse:-
Mazhar Mohammad of Chartviewindia.in said, the daily candle resembled an ‘Inverted Hammer.’ Such formations after a deep cut tend to attract follow through buying, he said. “Sustaining above the 15,616 level can help the Nifty50 rise towards the 15,769 level,” he said.
Chandan Taparia of Motilal Oswal Securities said the index has to rise and hold above 15,700 to move towards the 15,800 level. Supports are seen at 15,600 and 15,550 levels, he said.
That said, here’s a look at what some of the key indicators are suggesting for Friday’s action:
Nasdaq rises on growth optimism
US technology shares rose on Thursday on optimism around a speedy economic recovery, although the Federal Reserve’s unexpectedly hawkish message on monetary policy kept the S&P 500 and the Dow indexes subdued. At 09:00 p.m. IST, the technology-heavy Nasdaq Composite was up 1.04%, while the blue-chip Dow Jones Industrial Average was down 0.55% and the S&P 500 was flat.
European shares slip from record highs
European shares fell from record highs on Thursday, tracking declines on Wall Street after the Federal Reserve surprised investors by taking a hawkish tone to its policy, while CureVac sank 40% after failing in a pivotal COVID-19 vaccine trial. At 9:00 p.m. IST, the pan-European STOXX 600 index was down 0.13%, snapping a nine-day gaining streak, after the Fed said it could begin raising interest rates a year earlier than expected.
Tech View: Nifty50 forms bullish candle
Nifty50 on Thursday formed a bullish candle on the daily chart. It was the second day when the index made a lower high-low formation. During the session, the index found some support near the 15,600 level. Analysts said a breach of the 15,600-15,550 range could bring in more selling to the index. The immediate resistance is seen at the 15,769 level. Gaurav Ratnaparkhi of Sharekhan said Nifty is quoting near recent swing lows placed in the 15,600-15,560 range. “Also, the 20 DMA is present in this range. Thus, this is a key support range to watch out for. If the bulls manage to hold on to this support zone, the index can start the next leg on the upside. On the other hand, a breach would push the index towards the 15,400 level,” Ratnaparkhi said.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com
F&O: Low VIX level offers hope
India VIX moved up 1.82% from 14.60 to 14.86 level. India VIX had been gradually falling since the last six consecutive weeks and came to the levels last seen in February 2020, when it started spiking. Lower volatility indicates an overall bullish market bias, but a small bounce in VIX can give the market some volatility. On the options front, maximum Put Open Interest was at 15,500 level followed by 15,000 while maximum Call OI was at 16,000 followed by 16,500. Minor Call writing was seen at 15,800 and then 15,900 levels, while minor Put writing was seen at 15,600 and then 15,400 levels. Options data suggested an immediate trading range between 15,600 and 16,000 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Himadri Speciality, BLS International, BEML, KEC International, Asian Paints, Superhouse, Dhunseri Ventures,
, Atul Auto, Dixon Technologies, Cyient, Weizmann, Honda India Power, Times Guaranty, Mold-Tek Packaging, The Hi-Tech Gears, Pearl Global Industries, and SIL Investments.
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
, Coal India, DLF, , REC, Apollo Tyres, Snowman Logistics, Kellton Tech Solution, Bharat Forge, , HBL Power Systems, Balrampur Chini, Equitas Holdings, Bajaj Consumer Care, Minda Corporation, Natco Pharma, Geojit Financial, Dr. Reddy’s Labs, Eicher Motors, Sunteck Realty, Redington (India), Kajaria Ceramics, Oberoi Realty, Man Industries, Inox Wind, Finolex Cables, Rupa & Company, HDFC AMC, DCM Shriram, Orient Abrasives, Alkem Laboratories, Lux Industries, Tata Elxsi, Sobha, Godrej Industries, Bosch, Force Motors, Asian Hotels (North) and Gillette India. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Thursday’s most active stocks in value terms
Adani Ports SEZ (Rs 4,705.82 crore), Adani Enterprises (Rs 3,838.52 crore), Tata Steel (Rs 1,802.46 crore), RIL (Rs 1,607.71 crore), Infosys (Rs 1,142.31 crore), Bajaj Finance (Rs 1,132.59 crore), Tata Motors (Rs 1,016.71 crore), Just Dial (Rs 1,001.21 crore), Max Financial (Rs 996.44 crore) and SBI (Rs 972.58 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.
Thursday’s most active stocks in volume terms
Vodafone Idea (Shares traded: 17.55 crore), Himadri Speciality (Shares traded: 11.45 crore), YES Bank (Shares traded: 10.43 crore), PNB (Shares traded: 7.92 crore), Tata Power (Shares traded: 7.38 crore), Adani Ports SEZ (Shares traded: 7.08 crore), Union Bank India (Shares traded: 6.67 crore), SAIL (Shares traded: 6.24 crore), BHEL (Shares traded: 5.75 crore) and HFCL (Shares traded: 5.70 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Radico Khaitan, APL Apollo Tube, PNB Housing, Shree Renuka Sugar and Tata Telecommunication witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Anmol India,
and Vikas EcoTech RE 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 140 stocks on the BSE500 index settled the day in the green, while 357 settled the day in the red.
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