Nifty moved in a range of 119 points and formed an Inside Bar on the daily chart, reflecting the ongoing consolidation. Analysts said the index will need to cross the 15,900 level to witness any further bounce.
Here’s how analysts read the market pulse:
Ruchit Jain of Angel Broking said the index is undergoing a time-wise correction. “It just seems to be a corrective phase within an uptrend. Unless any negative development is seen, our market should be geared for a resumption of the uptrend soon,” he said.
Mazhar Mohammad of Chartviewindia.in, said, it is critical for the index to sustain above the 15,673 level to continue sideways consolidation with positive bias. “The strength in the index is expected to close above the 15,862 level, but a sustainable bounce is possible only if Nifty50 closes above 15,900 level,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Friday’s action:
Wall Street hits records
The S&P 500 and the Nasdaq hit all-time highs on Thursday, boosted by shares of Tesla and other top-shelf technology firms as data showing fewer weekly jobless claims pointed to a steady recovery in the labor market. The Dow Jones Industrial Average rose 297.97 points, or 0.88 per cent, to 34,172.21. The S&P 500 rose 25.28 points, or 0.60 per cent, to 4,267.12, after hitting a record high of 4,268.67. The Nasdaq Composite rose 106.91 points, or 0.75 per cent, to 14,378.64, after clocking a record high of 14,387.60.
European shares grind higher
European stock markets rose as investors reassessed the US central bank’s statements. In Europe, the STOXX 600 extended earlier gains to add 0.7 per cent, bolstered by news of German business morale hitting its highest in 2-1/2 years. Britain’s FTSE 100 share index was 0.5 per cent higher after the Bank of England (BoE) kept the size of its stimulus programme unchanged and left its benchmark interest rate at an all-time low of 0.1 per cent, as expected.
The MSCI world equity index was 0.1 per cent higher, edging towards record highs hit earlier in June.
Tech View: Nifty forms Inside Bar as consolidation phase continues
NIfty50 traded inside the range of the last session, reflecting the ongoing consolidation in the broader 15,450-15,900 range. Analysts said the upside hurdle stays at the 15,900 level. They see support for Nifty near the 15,670 level.
Check out the candlestick formations in the latest trading sessions
ETMarkets.comF&O: Bullish candle in Nifty chart gives bulls an edge
The index has to hold above 15,750 to witness a bounce towards 15,900-16,000 levels, while on the downside, support can be seen at 15,700 and 15,600 levels. India VIX fell 1.71 per cent from 15.36 to 15.09. Lower volatility indicates an overall bullish market bias, but a small bounce in VIX can offer some volatile cues to the market.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Indiabulls Real Estate, DCW, Tata Motors, City Union Bank, KRBL, Indian Hotels, Uttam Sugar Mills, Avadh Sugar & Energy, Relaxo Footwears, Godfrey Phillips, VLS Finance, Maruti Suzuki India, Refex Industries, Dilip Buildcon, IFGL Refractories, Dhani Services, Zodiac Clothing, Bajaj Finserv, Monte Carlo Fashions, JBM Auto, Kansai Nerolac Paint, Tejas Networks, Tanla Platforms, Zydus Wellness, and Delta Manufacturing.
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 Vodafone Idea, Rain Industries, JSW Energy, Just Dial, Nectar Lifesciences, Raymond, United Breweries, Reliance Infrastructure, JK Tyre, Astra Microwave, Sadbhav Engineering, Heidelberg Cement, Zen Technologies, Sumitomo Chemical, Bata India, Deepak Fertilisers, Triveni Turbine, Cochin Shipyard, Sanghvi Movers, Wonderla Holidays, Future Supply Chain, Seya Industries, Kothari Products, Abbott India, Poddar Pigments, ICRA, Keynote Financial, KDDL and W S Industries. 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
RIL (Rs 9,179.97 crore), Infosys (Rs 1,664.78 crore), Adani Ports SEZ (Rs 1,528.18 crore), TCS (Rs 1,389.78 crore), Sona BLW Precision Forgings (Rs 1,387.81 crore), HDFC Bank (Rs 1,110.53 crore), Adani Enterprises (Rs 1,092.13 crore), Shyam Metalics and Energy (Rs 1,035.65 crore), BEL (Rs 968.14 crore) and HDFC (Rs 813.51 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: 28.96 crore), Reliance Communication (Shares traded: 14.27 crore), RattanIndia Power (Shares traded: 12.19 crore), PNB (Shares traded: 10.99 crore), YES Bank (Shares traded: 8.38 crore), BEL (Shares traded: 5.66 crore), GMR Infra (Shares traded: 5.11 crore), Suzlon Energy (Shares traded: 4.65 crore), BHEL (Shares traded: 4.37 crore) and RIL (Shares traded: 4.22 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Bharat Electronics, Coforge, Infosys, Sona BLW Precision Forgings, Shyam Metalics and Energy, UTI AMC, Tata Telecommunication and Shree Renuka Sugar witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Anmol India, Inventure Growth & Securities and Shivalik Bimetal Controls 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 178 stocks on the BSE500 index settled the day in the green, while 318 settled the day in the red.
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