Here’s how analysts read the market pulse:
Rupak De, Senior Technical Analyst at
, said: “The Nifty breached the psychological 17,000 multiple times before closing above it in the final hour. The index has found support at 200-DMA for the third consecutive day. The daily RSI is in a bullish crossover. Over the short term, the index may remain within a band. On the lower end, 16,950 may act as support; whereas 17,300 may act as resistance on the higher end.”
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said: “This is the continuous 4th session on Thursday, where alternative movements like up and down days were seen. After opening on a negative note, the market showed further cuts in the early to mid part of the session. It later shifted into a broader range movement with volatile movement.”
That said, here’s a look at what some key indicators are suggesting for Friday’s action:
US stocks climb in sharp reversal
Stocks reversed course to rally sharply higher after MSCI’s global stock index lurched to a July 2020 low and the dollar gave up strong gains as investors digested a red hot U.S. inflation reading that cemented bets for a big Federal Reserve rate hike next month.
The Dow Jones Industrial Average rose 575.73 points, or 1.97%, to 29,786.58, the S&P 500 gained 64.6 points, or 1.81%, to 3,641.63 and the Nasdaq Composite added 158.39 points, or 1.52%, to 10,575.49.
European stocks end higher
European markets closed higher on Thursday in a sharp reversal of risk sentiment. European Stoxx 600 ended the session up 0.9%.
Tech View: Small negative candle
The Nifty formed a small negative candle on the daily chart, placed beside the positive candle of the previous session.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of
, , Rama Steel, , and Fortus Healthcare, 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 signalling weakness ahead
The MACD showed bearish signs on the counters of Zomato, NMDC, LT Foods,
A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.
Most active stocks in value terms
Wipro (Rs 1625 crore), Axis Bank (Rs 1046 crore),
(Rs 1024 crore), (Rs 993 crore), and HCL Tech (Rs 950 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
(Shares traded: 16.46 crore), (Shares traded: 8.48 crore), Zomato (Shares traded: 7.37 crore) and JP Power (Shares traded: 4.72 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of RITES,
, Religare, and witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Shares of Wipro,
, FSN E-Commerce, Biocon and witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bears
Market breadth favoured losers as 2,203 stocks ended in the red, while 1,246 names advanced.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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