Nifty moved in a tight range of 82 points, and ended slightly below the psychologically crucial level of 15,700. The index formed a small bullish candle on the daily chart with a long lower wick, suggesting the intraday decline was bought into. Analysts said the index can move up to the levels around 15,850-16,000 as the short-term momentum looks strong. Will Nifty cross the 15,800-15,900 levels in the coming days?
Here’s how analysts read the market pulse:
Gaurav Ratnaparkhi of Sharekhan said that after an intraday breach of 15,700 level, Nifty50 could soon hit the 16,000 mark. “The gap area of 15,611-15,597, which was created on the daily chart on June 3, will act as an immediate support zone,” he said.
Chandan Taparia of Motilal Oswal Securities believes that a sustained hold above 15,600 can push the index towards fresh lifetime highs of 15,800 and 16,000 levels. “Supports exist at 15,550 and 15,431 levels,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Friday’s action:
US shares drop amid inflation fears
Wall Street’s main indices fell, weighed down by high-growth technology stocks, as a raft of upbeat data indicated a strong economic rebound was underway, fanning fears of rising inflation. The Dow Jones Industrial Average was last seen trading 0.34 per cent lower at 34,483.67. The S&P 500 was down 0.54 per cent at 4,185.19 and the Nasdaq Composite 0.95 per cent at 13,626.02.
European shares pared losses as upbeat eurozone business growth data and strong US jobs data lifted sentiment on a dull day of trading, while rating actions and ex-dividend trading knocked UK shares lower. The pan-European STOXX 600 index was down 0.1 per cent after falling as much as 0.8 per cent earlier in the session. The automobiles & auto parts and healthcare sectors gained, while miners fell the most.
F&O: Fear gauge hits 17-month low
The India VIX index fell 8.51 per cent from 17.21 to 15.74. The barometer is near its lowest level of last 17 months since February 2020 and a falling VIX can extend the bullish market momentum towards a new high territory.
Tech View: Nifty50 eyes Rs 15,850 amid strong momentum
The index formed a small bullish candle on the daily chart, with a long lower wick, suggesting that the intraday decline got bought into. Analysts said the momentum looks strong and levels around 15,850-16,000 cannot be ruled out in the short term. The immediate support for the index is seen in the 15,600-550 range, they said.
Check out the candlestick formations in the latest trading sessions
ET CONTRIBUTORS
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of SREI Infrastructure, Snowman Logistics, Tata Motors, Petronet LNG,
, Goodluck India, Marico, Spandana Sphoorty, Inox Wind, RPP Infra Projects, Indus Towers, Welspun Enterprises, Apollo Hospitals, Tribhovandas Bhimji, MOIL, Windsor Machines, Jindal Drilling, BSL, SPL Industries, Alembic Pharmaceuticals, Satia Industries, Thermax, Deep Energy Resource, Golden Tobacco, Future Enterprises, Dhunseri Tea & Indus, Tata Investment, Secure Cloud Tech, Maan Aluminium, Centum Electronics, Honda India Power, Akash Infra-Projects, Wendt India, CL Educate and Naga Dhunseri Group.
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 TV18 Broadcast, MMTC, Equitas Holdings,
, , Kesoram Industries, Balkrishna Industries, JMC Projects, Star Cement, Quick Heal Technologies, Bajaj Finserv, Century Plyboards, Birla Cable, Supreme Industries, Manaksia Aluminium, Ucal Fuel System, RPSG Ventures, Deccan Cements, Sheela Foam, Gujarat Apollo Indus, GeeCee Ventures, Jocil, NDR Auto Components, and Balaxi Pharmaceuticals. 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 Enterprises (Rs 3,045.89 crore), RIL (Rs 2,457.88 crore), Muthoot Finance (Rs 2,059.50 crore), Adani Ports SEZ (Rs 1,999.85 crore), Motherson Sumi (Rs 1,764.59 crore), SBI (Rs 1,701.50 crore), IndusInd Bank (Rs 1,475.61 crore), Tata Steel (Rs 1,362.70 crore), Bajaj Finance (Rs 1,308.13 crore) and Titan Company (Rs 1,203.66 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 highest trading turnovers in the day.
Thursday’s most active stocks in volume terms
Vodafone Idea (Shares traded: 43.36 crore), PNB (Shares traded: 26.51 crore), Suzlon Energy (Shares traded: 18.59 crore), YES Bank (Shares traded: 8.74 crore), JP Power (Shares traded: 8.02 crore), Motherson Sumi (Shares traded: 6.95 crore), ONGC (Shares traded: 6.42 crore), Ballarpur Industries (Shares traded: 5.23 crore), Adani Power (Shares traded: 5.05 crore) and ITC (Shares traded: 4.67 crore) were among the most traded stocks in the session.
Stocks showing buying interest
PNB Housing, Oberoi Realty, Gujarat Fluorochem, Muthoot Finance and Phoenix Mills witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
DSJ Communications 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 bulls. As many as 342 stocks on the BSE500 index settled the day in the green, while 156 settled the day in the red.
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