Here’s how analysts read the market pulse:-
Mazhar Mohammad of Chartviewindia.in said Nifty50 is in the consolidation mode. “A critical hurdle is present around the 15,950 level, hinting that upsides will remain capped for a while. Traders will be better off by remaining neutral on index,” he said.
Rohit Singre of LKP Securities said a close above 15,800 level has signalled an extension of the ongoing positive momentum towards the immediate range at 15,900-16,000. Support for the index, Singre said, has shifted to the 15,750-15,700 range.
That said, here’s a look at what some of the key indicators are suggesting for Friday’s action:
Wall Street trades flat
The S&P 500 and the Dow indexes fell on Thursday after data showed weekly jobless claims hit a two-month high, while a rise in megacap growth stocks offered some support to the technology-heavy Nasdaq. At 10:00 a.m. ET the Dow Jones Industrial Average was down 62.20 points, or 0.18 per cent, at 34,735.80 and the S&P 500 was down 1.53 points, or 0.04 per cent, at 4,357.16. The Nasdaq Composite was up 24.87 points, or 0.17 per cent, at 14,656.83, boosted by Apple Inc, Amazon.com , Facebook Inc, Google-owner Alphabet Inc and Microsoft Corp.
European shares climb higher
Although trading volatile in the session, the STOXX 600 ended 0.6 per cent higher, its third straight session of gains. At 456 points, the pan-European benchmark is now just a tad higher than where it was before Monday’s selloff. Fears about the Delta variant are easing somewhat on the equities front even if lower bond yields today show concerns are still clouding the horizon on other asset classes.
Tech View: Nifty forms bullish candle
Nifty50 on Thursday formed a strong bullish candle on the daily chart as it snapped a three-day losing streak and rallied. The index negated lower highs and lows of the last two sessions. That said, analysts believe the NSE barometer is still in the consolidation phase and is likely to face resistance near the 15,900 level going forward.
F&O: India VIX drops 10 per cent
India VIX fell 9.96 per cent from 13.20 to 11.88 level. Declines in the volatility indicates the bulls are again holding the command and buying interest is seen at every meaningful decline. Options data suggested a broader 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 Sunflag Iron, India Cements,
, , Gujarat Gas, Aarti Industries, Radico Khaitan, Hisar Metal Industry, Muthoot Capital, Orient Abrasives, BLB, Vertoz Advertising, Sagar Cements, Vishwaraj Sugar, Kalyani Steel, PPAP Automotive, Mittal LifeStyle, Schaeffler India, Balaji Amines, Cholamandalam Finance, Shreyas Shipping, Madhucon Project, Geekay Wires, Orient Bell, HIL, Honda India Power and Lumax Industries.
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 Ashok Leyland, HCL Technologies,
, Glenmark Pharma, Filatex India, Jain Irrigation, NOCIL, Tata Chemicals, D-Link (India), Torrent Power, , DCB Bank, PI Industries, Shakti Pumps, ITI, HDFC AMC, Nagarjuna Fertilizer, Umang Dairies, Varun Beverages, Avanti Feeds, Century Textiles, KSB, Crest Ventures, Cyber Media (India), Bigbloc Construction, TVS Srichakra and Kingfa Science & Tech. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
Bajaj Finance (Rs 2,155.45 crore), Jubilant Food (Rs 1,779.25 crore), Havells India (Rs 1,499.67 crore), Infosys (Rs 1,241.56 crore), Bharti Airtel (Rs 1,067.36 crore), Tata Steel (Rs 999.31 crore), HDFC Bank (Rs 961.35 crore), TCS (Rs 918.46 crore), UltraTech Cement (Rs 866.39 crore) and HUL (Rs 862.56 crore) were among Thursday’s 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.
Most active stocks in volume terms
Vodafone Idea (Shares traded: 68.23 crore), IDFC (Shares traded: 8.22 crore), SAIL (Shares traded: 6.80 crore), PNB (Shares traded: 5.36 crore), YES Bank (Shares traded: 5.23 crore), JP Power (Shares traded: 4.41 crore), IDFC First Bank (Shares traded: 4.41 crore),
(Shares traded: 2.68 crore), Bank of Baroda (Shares traded: 2.56 crore) and Reliance Communication (Shares traded: 2.46 crore) were among Thursday’s most traded stocks in the session.
Stocks showing buying interest
Arvind Fashions, Berger Paints, Coforge, Divi’s Laboratories, Jindal Stainless, Jubilant Food, IDFC and Jubilant Ingrevia witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Thursday signalling bullish sentiment.
Stocks seeing selling pressure
Akg Exim, Madhav Copper, Megasoft Limited – RE and PVP Ventures witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours the bulls
Overall, the market breadth remained in favour of the bulls. As many as 381 stocks on the BSE500 index settled the day in the green, while 113 settled the day in the red.
Podcast: Will market see profit booking?
Market snapped its three-day losing streak and soared to regain previous resistance levels. Will the market see some profit booking in the coming days? What do the Nifty tech charts suggest?
