Press "Enter" to skip to content

Ahead of Market: 12 things that will decide D-Street action on Thursday – Economic Times

NEW DELHI: Market continues to be under pressure amid soaring inflation and sell-off in shares globally. Indian benchmark indices also fell for the third consecutive day on Wednesday. Analysts believe this is the right time to pick quality stocks at lower valuations.

Here’s how analysts read the market pulse:

Independent Analyst Manish Shah said the bearishness in the market is palpable, but the fact remains that the Nifty50 has not made a new low since May 16.

Mazhar Mohammad of Chartviewindia.in said that if the bulls fail to make a comeback on Thursday, it may eventually test the recent low present at around the 15,775 level.

That said, here’s a look at what some key indicators are suggesting for Thursday’s action:

Wall Street rises ahead of Fed minutes

US stock indexes shook off early weakness to trade higher on Wednesday as growth stocks rallied, with investors awaiting minutes from the Federal Reserve’s May meeting for clues on the path of its policy tightening.

At 10:48 a.m. ET, the Dow Jones Industrial Average was up 122.42 points, or 0.38%, at 32,051.04, the S&P 500 was up 21.59 points, or 0.55%, at 3,963.07, and the Nasdaq Composite was up 93.95 points, or 0.83%, at 11,358.39.

European stocks close higher

European stocks closed higher Wednesday as global markets tried to bounce back from a widespread retreat in the previous session. The pan-European Stoxx 600 provisionally closed up by 0.8%.

Tech View: Bearish candle

Nifty50 fell for the third day and formed a bearish candle on the daily chart. During the session, the index managed to defend the 16,000 mark and continued its recent consolidation. Analysts said rangebound moves may continue in the coming days and that any upside on Nifty50 will face hurdles at the 16,400 level.

F&O: Support at 16,000

On the call side, the biggest open interest is at 16,500 followed by 16200, meaning these are two resistance levels. On the put side, open interest converges at 15,500, followed by 16,000, providing support.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of

, , HDFC Life, , and .

The MACD is known for signaling 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 Atul,

, , Godfrey Phillips, and MOIL. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks in value terms

(Rs 1541 crore), Infosys (Rs 1366 crore), (Rs 1199 crore), TCS (Rs 1134 crore), Tata Steel (Rs 997 crore), (Rs 980 crore) and (Rs 959 crore) were among the most active stocks on NSE 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

Zomato (Shares traded: 10 crore),

(Shares traded: 9 crore), YES Bank (Shares traded: 9 crore), SAIL (Shares traded: 6 crore), JP Power (Shares traded: 4 crore) and PNB (Shares traded: 4 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest

stocks witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure

Divi’s Labs, Wipro, JSW Steel,

and Tata Steel witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bears

Overall, market breadth favoured losers as 662 stocks ended in the green, while 2,671 names settled with cuts.

Podcast