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

NEW DELHI: Indian markets have seen some recovery in the past few days as investors grabbed stocks at low valuations, but choppiness continues. Analysts also believe this is the right time to pick quality stocks at a cheap valuation.

Here’s how analysts read the market pulse:

For Rupak De, Senior of

, 50-EMA has been acting as a crucial resistance. “The trend remains sideward for the near term. Support is visible at 16,400, whereas resistance is likely to remain intact at 16,700,” he said.

“The near term uptrend of the Nifty50 remains intact and the present consolidation or minor weakness could be considered a ‘buy on dips’ opportunity for the short term. The market could see minor weakness for another one or two sessions before showing a sharp upside bounce from the low. The near term upside target remains intact at 16,800 levels,” said Nagaraj Shetti at HDFC Securities.

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

Wall Street mixed after robust earnings
Stocks on Wall Street are mixed on Wednesday after robust quarterly earnings from luxury retailers and Salesforce Inc, while manufacturing data showed demand for goods remained strong in May.

The Dow Jones Industrial Average fell 0.26%, the S&P 500 lost 0.19% and the Nasdaq Composite added 0.31%.

European stocks make choppy start to Jun

European shares gave up early gains on Wednesday as weak German retail sales and slowing factory activity in the euro zone fanned worries about economic growth amid record high inflation.

The pan-European STOXX 600 index was down 0.3%, after gaining as much as 0.4% in early trading. The benchmark shed 1.6% in May as surging inflation stoked worries about aggressive central bank action.

Tech View: Bullish candle

Nifty50 fell for the second day and formed a small bearish candle on the daily chart. The index made a lower high formation, but analysts believe the recent positive momentum stays intact as long as the 16,400 level is held on a daily basis.

F&O: Support at 16,000
On the call side, the biggest open interest is at 17,000, followed by 16,800, meaning there are two resistance levels. On the put side, open interest converges at 16,000, followed by 16,500, providing support.

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

, , , , 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

and Adani Gas. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks in value terms
Infosys (Rs 1,303 crore),

(Rs 1,190 crore), (Rs 1,002 crore), Zomato (Rs 972 crore), (Rs 885 crore), HDFC Bank (Rs 841 crore) and M&M (Rs 819 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
Zomato (Shares traded: 13 crore),

(Shares traded: 12 crore), Suzlon Energy (Shares traded: 8 crore), GTL Infra (Shares traded: 5 crore), JP Power (Shares traded: 4 crore) and Renuka Sugars (Shares traded: 4 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Timken India, Fine Organic,

, HAL, Blue Dart, Sumitomo Chemicals and M&M witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Hikal and Ipca Labs witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured gainers as 1,775 stocks ended in the green, while 1,555 names settled with cuts.

Source link

Leave a Reply

Your email address will not be published.