Here’s how analysts read the market pulse:
Gaurav Ratnaparkhi of Sharekhan said Nifty’s medium-term target is placed at 16,800. “The hourly upper Bollinger Band has started moving higher after a contraction phase, which is making room for price action on the upside,” he said.
Shrikant Chouhan of Kotak Securities said the breakout formation suggests a continuation of the uptrend in the near future. “The 16,280-16,220 range would be a key support level for trend-following traders. Above the same, the range breakout formation is likely to continue up to 16,400-16,475 levels,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Friday’s action:
Wall Street slips from record highs
US stock indices were trading lower in the early session. The Dow Jones and S&P 500 had closed at record highs on Tuesday. After an hour of trading on Thursday, the Dow Jones Industrial Average fell 90.81 points, or 0.26 per cent, to 35,394.16, the S&P 500 lost 3.74 points, or 0.08 per cent, to 4,443.96 and the Nasdaq Composite dropped 8.13 points, or 0.06 per cent, to 14,757.01.
European stocks hit new highs
European shares rose on Thursday, hitting yet another record high, as strong earnings from insurers and M&A activity in the UK helped offset a fall in mining stocks. The pan-European STOXX 600 index inched up 0.1 per cent, extending gains to a ninth consecutive session.
Tech View: Nifty eyes the 16,400 level
Nifty50 on Thursday climbed for the fourth straight session and in the process broke above the 16,350 level. Analysts see more upside for the index in the coming days, but a pause cannot be ruled out in the 16,400-16,475 range.
F&O: Lower VIX shows bulls in command
India VIX fell 3.89 per cent from 12.71 to 12.21 level. The overall lower volatility indicates that the bulls are in command and declines are getting bought into. Options data suggested a broader trading range between 16,100 and 16,500 levels, and an immediate trading range between 16,200 and 16,500.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Bank of Baroda,
, Indoco Remedies, IDBI Bank, , & Industries, , Dhani Services, KEI Industries, Bhagyanagar India, Nelco, VRL Logistics, ICICI Pru Life, UTI AMC, Sundaram Fasteners, GOCL Corporation, Hester Biosciences, Ester India, Neogen Chemicals, Cosmo Films, TPL Plastech, Texmaco Infrastructure, WABCO India, TTK Prestige, Global Education and Lakshmi Finance.
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 ITC, Aarti Industries, Sundaram Finance, Narayana Hrudayalaya, Eveready Industries, Rajesh Exports, Aarti Surfactants, D P Wires, JK Cement, Privi Speciality Chem, Solar Industries, IndiaMART InterMESH, PDS Multi Fashions, Esab India and
. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
IRCTC (Rs 1613.45 crore), Tata Steel (Rs 1566.29 crore),
(Rs 1295.36 crore), Tech Mahindra (Rs 1179.21 crore), Tata Motors (Rs 1017.76 crore), Lupin (Rs 965.42 crore), Infosys (Rs 955.14 crore), Power Grid (Rs 800.49 crore), RIL (Rs 794.33 crore) and SBI (Rs 719.66 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 the highest trading turnovers in the day.
Most active stocks in volume terms
JP Power (Shares traded: 14.13 crore), Vodafone Idea (Shares traded: 12.11 crore), YES Bank (Shares traded: 7.59 crore), Zomato (Shares traded: 5.13 crore), GTL Infra (Shares traded: 4.80 crore), SAIL (Shares traded: 4.45 crore), Power Grid (Shares traded: 4.36 crore), Tata Motors (Shares traded: 3.37 crore), PNB (Shares traded: 3.27 crore) and IDFC First Bank (Shares traded: 3.19 crore) were among the most traded stocks in the session.
Stocks showing buying interest: VIP Industries, Laxmi Organic Industries, Max Healthcare, Hikal and UTI AMC witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Suvidhaa Infoserve, Future Market Networks, Shrenik and YES Bank witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls
Overall, the market breadth remained in favour of the bears. As many as 384 stocks on the BSE500 index settled the day in the green, while 111 settled the day in the red.
Podcast: Is it time to book profits in midcap stocks?
Many analysts seemed to have turned cautious in the broader market space and are suggesting investors book profits in midcaps and shift focus to largecaps. Should you book profits and move to largecap stocks? Can Nifty continue to hit fresh highs? What are the technical charts suggesting?
