Ahead of Market: 10 things that will decide D-Street action on Friday

Indian shares reversed intraday gains and logged losses on Thursday, as a handful of downbeat quarterly earnings reports overshadowed optimism from favourable U.S. inflation data.The Nifty 50 closed 0.10% lower at 18,297, while the S&P BSE Sensex fell 0.06% to 61,904.52.

"The current market rally has been largely influenced by consistent FII inflows, driven by lower treasury yields and the weakness of the US Dollar. However, the gains in the domestic market were tempered by weak earnings reported by a few heavyweight companies. On the global front, markets remained positive as US inflation eased below 5%, providing reassurance to investors that the Fed's rate hike measures have been effective in managing inflation levels,” Vinod Nair, Head of Research at Geojit Financial Services, said.“The short-term uptrend formation is still positive, and the index is consistently forming a higher bottom formation which is also supportive for bulls. We are of the view that as long as the index is trading above 18200, the uptrend formation Is likely to continue. Above this, the index could move up till 18400-18475. On the flip side, below 18200, the market could slip till 18125-18100,” Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said.

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

Wall Street Watch
Wall Street is slipping Thursday, weighed down by a sharp drop for The Walt Disney Co. and flaring fears about the health of some U.S. banks.

The S&P 500 was 0.3% lower in early trading. The Dow Jones Industrial Average was down 287 points, or 0.8%, at 33,243, as of 9:45 a.m. Eastern time, while the Nasdaq composite was virtually unchanged.

European Shares
Europe's stock markets, the dollar and oil all had a spring back in their step on Thursday as a deflationary jolt from China made way for broader optimism ahead of what was set to be the Bank of England's 12th straight rate rise later.
Hopes that the U.S. The Federal Reserve's aggressive hiking cycle may be over at least it was still feeding through following inflation data there on Wednesday, with the pan-European STOXX 600 index up 0.5% and key borrowing costs inching down.

Tech View: Small negative candle
A small negative candle was formed on the daily chart with minor upper and lower shadows. Technically, this pattern indicates a formation of high wave type candle formation, but not a classical one.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Zee Entertainment, GCPL, Quess Corp, HG Infra and Sanofi India, 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 signaling weakness ahead
The MACD showed bearish signs on the counters of ITC, Hindalco, L&T, NHPC and Aditya Birla Capital among others.

Most active stocks in value terms
HDFC Bank (Rs 2959 crore), L&T (Rs 2136 crore) ICICI Bank (Rs 1884 crore), Adani Enterprises (Rs 1744 crore) and Dr. Reddy’s Laboratories (Rs 1274 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 highest trading turnovers in the day.

Most active stocks in volume terms
Vodafone Idea (Shares traded: 20.25 crore), IRFC (Shares traded: 13.77 crore), Zomato (Shares traded: 7.5 crore), RVNL (Shares traded: 5.14 crore), and YES Bank (Shares traded: 4.9 crore) among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Ratnamani Metals Cyient, KEI Industries, HG Infra, Siemens and Glenmark Pharma, among others, witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of Vikas Multicorp, Paisalo Digital and BEML Land Assets, among others, hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured bulls as 1,942 stocks ended in the green, while 1,553 names settled with losses.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)