Here’s how analysts read the market pulse:
Mazhar Mohammad of Chartviewindia.in said the advance-decline ratio decisively remains skewed in favor of the bears. “Nifty50 is still stuck up in a trading range, with upsides capped around 15,900 level,” he said.
Manish Shah, Founder at www.Niftytriggers.com said the sharp rally from the low was a ‘Hammer’ or a ‘Pin Bar’ pattern, which indicates active buying interest at the lows. “We are in a well-established range that points to a simple strategy of buying Nifty50 around 15,500 and selling around 15,950,” Shah said.
That said, here’s a look at what some of the key indicators are suggesting for Thursday’s action:
Google lifts Nasdaq as focus turns to Fed
The technology-heavy Nasdaq rose on Wednesday on strong earnings from Google-parent Alphabet, as investors turned to the Federal Reserve to gauge the impact of rising inflation and the Delta variant on its monetary stimulus. The Nasdaq Composite was up 0.31 per cent by 9:55 a.m. ET, after posting its worst session in more than two months on Tuesday. The Dow Jones Industrial Average was down 0.08 per cent. The benchmark S&P 500 was down 0.07 per cent.
European benchmark closes near previous peak
European equities didn’t manage to reach a new record peak by a thin margin today, but easing Chinese angst nevertheless helped the STOXX 600 run past the finish line at its session highs. At the close, the STOXX 600 just needed an extra 0.06 points to cross above its previous peak as the benchmark index ended ~0.7 per cent higher.
Tech View: Nifty50 forms ‘Hammer’ candle
Nifty50 on Wednesday staged a strong comeback after briefly breaching its strong support at 15,600 level. In the process, the index formed what looked like a trend reversal ‘Hammer’ candle on the daily chart. Analysts said one must not jump the gun, as other technical indicators are still not in favour of the bulls. They believe the broader consolidation range at 15,600-15,900 stays intact.
F&O: Spike in VIX a worry now
India VIX moved up 3.50 per cent from 13.23 to 13.69 level. Volatility has seen a sharp spike towards the 16-level during the day, as the index broke all immediate support and fear was seen among traders. Now VIX has to cool down below the 12 zone to again get a bullish stance for the market. Options data suggests a broader trading range between 15,600 and 15,850 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Trident, Century Textiles, Vedanta, Kesoram Industries, Dollar Industries, Raymond, Bajaj Finance, Malu Paper Mills, Torrent Pharma, Olectra Greentech,
, Ruby Mills, Tube Investments, Dr. Lal Pathlabs, Eros International, Swan Energy, Timken India, Salona Cotspin, Subros, Asian Hotels (North), Shiva Mills and .
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 Indiabulls Housing Finance, Granules India, REC, Power Finance, Jain Irrigation, Nippon Life AMC, Navkar Corporation, UFO Moviez India, Motilal Oswal Finance,
, Kitex Garments, Dalmia Bharat, Godrej Properties, Emami Realty, Star Cement, MindTree, Emkay Global Financing, Sobha, Oberoi Realty, BPL, S Chand & Company, Max India, SMS Pharmaceuticals, Crisil, TeamLease Service, Goodyear India, Godfrey Phillips, Page Industries, Williamson Magor, VST Tillers, Dhunseri Investments, Sandesh, Wendt India, and Vardhman Holdings. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
Zomato (Rs 2,043.60 crore), Bharti Airtel (Rs 1,787.61 crore), Tata Steel (Rs 1,717.08 crore), Dr. Reddy’s Labs (Rs 1,536.63 crore), HDFC Bank (Rs 1,464.08 crore), ICICI Bank (Rs 1,242.45 crore), RIL (Rs 1,210.62 crore), Tata Motors (Rs 1,033.34 crore), SAIL (Rs 993.76 crore) and HDFC (Rs 959.94 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
Vodafone Idea (Shares traded: 26.86 crore), Zomato (Shares traded: 15.98 crore), YES Bank (Shares traded: 12.91 crore), Trident (Shares traded: 9.07 crore), Vikas Multicorp (Shares traded: 7.91 crore), SAIL (Shares traded: 7.56 crore), JP Power (Shares traded: 7.34 crore), Suzlon Energy (Shares traded: 6.75 crore), PNB (Shares traded: 5.72 crore) and NALCO (Shares traded: 5.36 crore) were among the most traded stocks in the session.
Stocks showing buying interest
ACC, Ajanta Pharma, Century Textiles, Fortis Healthcare, Inox Wind, JSW Energy, Tata Communication, Welspun India, Godawari Power and Oracle witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Alembic Pharma, Madhav Copper Synergy Green Industries and Suryoday Small Finance Bank 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 171 stocks on the BSE500 index settled the day in the green, while 321 settled the day in the red.
Podcast: Will the market continue to trade in a range?
After nearing the 15,900 level last week, Nifty gave up all its gains to slip below the 15,750 level. Will the market continue to trade in a range for some time? What are the technical charts suggesting?
