Mazhar Mohammad of Chartviewindia.in said Nifty may fall further if it slips below the 15,779 level.
iStockNifty50 formed a small bullish candle with a long wick on Wednesday, suggesting that intraday selling got bought into. During the day, the index formed a base near its key hourly moving averages, before heading higher
NEW DELHI: Nifty50 formed a small bullish candle with a long wick on Wednesday, suggesting that intraday selling got bought into. During the intraday recovery, Nifty tested the hurdle at 15,900 level, which has been posing a key resistance to the index for the past couple of sessions.
Here's how analysts read the market pulse:
Mazhar Mohammad of Chartviewindia.in said Nifty may fall further if it slips below the 15,779 level. “Any intraday weakness may initially get extended towards 15,730 level and a close below that may further strengthen the bearish sentiment for a target of 15,600,” he said.
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Ajit Mishra of Religare Broking said the earnings season will provide some direction to the market in the absence of any major triggers. “We remain cautiously optimistic and believe any correction at this juncture should be considered healthy,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Thursday's action:
Wall Street indices hit new highs The Nasdaq and the S&P 500 hit new highs on Wednesday, helped by a rally in technology-heavy growth stocks, while investors awaited minutes from the Federal Reserve’s meeting after the central bank took a more hawkish tone last month. At 10:12 am (ET), Dow rose 13.02 points, or 0.04 per cent; the S&P500 gained 6.44 points, or 0.15 per cent, and the Nasdaq up 21.30 points, or 0.15 per cent.
Commodity stocks recovery lifts European mkts European stocks gained on Wednesday as commodity-linked stocks recovered from sharp falls in the previous session, while lower bond yields continued to support highly-valued technology shares. The pan-European STOXX 600 rose 0.5 per cent. The index snapped a three-day winning streak on Tuesday. A rally in beaten-down “value” stocks has helped push the STOXX 600 to record highs this year.
Tech View: Nifty forms bullish candle Nifty50 formed a small bullish candle with a long wick on Wednesday, suggesting that intraday selling got bought into. During the day, the index formed a base near its key hourly moving averages, before heading higher.
F&O: Nifty range seen at 15,700-16,000 India VIX fell 0.55 per cent from 12.27 to 12.21 level. The fear gauge gradually drifted lower and hovered near the lowest point of the last 17 months. Lower volatility indicates a rangebound move, but at the same time every decline got bought into.
Stocks showing bullish bias Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Tata Motors, RBL Bank, Equitas Holdings, Tata Steel, Edelweiss Financial Services, Orient Paper, Lemon Tree Hotels, Adani Ports & SEZ, Ashok Leyland, Canara Bank, Geojit Financial, Sobha, IndusInd Bank, Berger Paints, Kotak Mahindra Bank, HDFC, Apollo Tyres, Godrej Properties and IRCTC, among others. 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 GMR Infrastructure, Infosys, Jammu & Kashmir Bank, Greaves Cotton, Laurus Labs, Natco Pharma, D-Link (India), Finolex Industries,
Most active stocks in value terms Tata Motors (Rs 3,518.52 crore), Tata Steel (Rs 2,002.54 crore), Bajaj Finance (Rs 1,210.98 crore), RIL (Rs 1,017.98 crore), NMDC (Rs 915.73 crore), SAIL (Rs 888.10 crore), TCS (Rs 862.13 crore), Adani Ent. (Rs 782.60 crore), Infosys (Rs 748.50 crore) and HDFC Bank (Rs 741.17 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.
Most active stocks in volume terms GTL Infra (Shares traded: 14.05 crore), Tata Motors (Shares traded: 11.22 crore), BHEL (Shares traded: 10.76 crore), Vodafone Idea (Shares traded: 9.91 crore), JP Power (Shares traded: 8.62 crore), SAIL (Shares traded: 7.03 crore), NALCO (Shares traded: 6.95 crore), YES Bank (Shares traded: 6.16 crore), NMDC (Shares traded: 5.47 crore) and Subex (Shares traded: 4.70 crore) were among the most traded stocks in the session.
Stocks showing buying interest Equitas Small Finance Bank, Rain Industries, Motilal Oswal, Carborundum Universal and NALCO witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure India Pesticides, Suryoday Small Finance Bank and Uttam Galva Steels 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 285 stocks on the BSE500 index settled the day in the green, while 210 settled the day in the red.
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