A sweeping victory for the Bharatiya Janata Party in Gujarat assembly elections did little to lift the mood on Dalal Street, as the hawkish view of RBI on inflation Wednesday played in the minds of investors.
The BSE Sensex ended 0.3% higher at 62571 points and Nifty 50 closed 0.3% higher at 18609 points.
Here’s how analysts read the market pulse:
“The bulls came back strong and knocked out the bears with full force surpassing the hurdle of 43,500 on a closing basis. The index confirms the continuation of the uptrend towards 44,000-44,600 levels on the upside. The lower-end support stands at 43,000, which will act as a cushion for the bulls. The index remains on a ‘buy’ mode and any dips should be utilized to initiate fresh long positions,” Kunal Shah, Senior Technical Analyst at
, said.
“Nifty witnessed a lacklustre trading session as the index failed to give any directional move. For any meaningful directional move Nifty needs to go below 18,500 decisively or above 18,700 on a sustain basis. Support below 18,500, it is pegged at 18,350/18,200. On the other hand, above 18,700, resistance is visible at 18,900,” Rupak De, Senior Technical Analyst at LKP Securities, said.
That said, here’s a look at what some key indicators are suggesting for Friday’s action:
US market
Stocks climbed as data showed some signs the labor market is cooling — one of the key factors Federal Reserve officials are watching to decide on whether they will be able to notch down their tightening campaign. The rebound in the S&P 500 followed a five-day selloff that put the equity gauge on the cusp of an important technical indicator: its average price of the past 100 days. The tech-heavy Nasdaq 100 outperformed, led by gains in giants Apple Inc. and Amazon.com Inc. Treasuries also reversed course Thursday, with 10-year yields on the rise and approaching the 3.5% mark. Oil rallied amid an outage on a major US oil pipeline and optimism over China’s reopening. The S&P 500 rose 0.9% as of 10:31 a.m. New York time and the Nasdaq 100 rose 1.1% while the Dow Jones Industrial Average was up by 0.8%.
European shares
European shares fell on Thursday, with utilities and telecom firms leading declines amid growing fears of an impending recession. The region-wide STOXX 600 was down 0.1% at 0815 a.m. GMT.
The index dropped for a fourth straight session on Wednesday on rising concerns over a slowdown in economic growth ahead of a slew of interest rate decisions from major central banks next week.
Among STOXX 600 sectors, telecom and utilities fell about 0.6% and 0.5%, respectively, in early trading.
Tech View: Small positive candle
Nifty today formed a small positive candle on the daily chart at the support of 18,550-18,500 levels but remained range-bound amid F&O weekly expiry. Analysts said positive chart patterns like higher tops and bottoms continued on the daily chart and the overall chart pattern signal positive bias for the short term.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of
, Garden Reach Shipbuilders, and Bharat Dynamics, among others.
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 signaling weakness ahead
The MACD showed bearish signs on the counters of IRFC,
, and among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
(Rs 2,385 crore), BOB (Rs 1,721 crore), (Rs 1,629 crore), (Rs 1,196 crore) and (Rs 989 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
(Shares traded: 15.17 crore), PNB (Shares traded: 15.07 crore), Central Bank (Shares traded: 13.81 crore), (Shares traded: 9.6 crore) and Bank of Baroda (Shares traded: 9.3 crore) were among the most traded stocks in the session on the NSE.
Stocks showing buying interest
Shares of Central Bank, Punjab &
, , J&K Bank and witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
No shares hit their 52-week lows on Tuesday, which signals bearish sentiment on the counters.
Sentiment meter favours bulls
Overall, market breadth favoured bulls as 1,808 stocks ended in the green, while 1,681 names settled with cuts.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
