The NSE Nifty 50 index closed up 0.02% at 24,143 points, while the S&P BSE Sensex gained 0.19% at 79,105.
The latest US consumer price data, released earlier on Wednesday, offered little deviation from expectations of interest rate cuts since early September.
In July, the US Consumer prices rose modestly, with the annual inflation rate slowing below 3% for the first time since early 2021.
Softer-than-expected producer price data suggested that inflation is moderating, although this came a day after it had yet to reach the US central bank’s 2% target. This development supports the view that inflation is gradually coming under control.
Here’s how analysts pulse the market:
“On the daily chart, we can observe that the Nifty is consolidating around the range of 24,200 – 24,150 where the 40-day average is placed. The structure is still weak and the momentum indicators also have a negative crossover which supports our bearish trend. is. After the key moving average rises towards 24,250 – 24,300 it should be used as a selling opportunity for targets of 23,890 – 23,600, 24,300 is an immediate barrier from a short-term perspective,” Sherkhan’s Jatin Gedia.
Rupak De, Senior Technical Analyst, LKP Securities said, “The overall trend is likely to remain bearish, as the index continues to trade below the initial resistance level of 24,250. Further, the index is holding below the medium Bollinger Band, which is confirming. This weakness may push the index towards 23,900/23,700.
That said, here’s a look at what some key indicators suggest for Friday’s action:
US market
Wall Street’s major indexes opened higher on Thursday as retail sales data for July signaled resilient consumer spending, allaying fears of an imminent recession in the world’s largest economy.
The Dow Jones Industrial Average opened 287.3 points, or 0.72% higher, at 40295.74. The S&P 500 rose 45.9 points, or 0.84%, to 5501.13 at the opening bell, while the Nasdaq Composite rose 201.9 points, or 1.17%, to 17394.545.
European stocks
European shares rose on Thursday as benign inflation data added to an upbeat mood on US rate cuts in September and gains from insurer Admiral.
The pan-European STOXX 600 rose 0.2% to trade near a two-week high and was on track for a third straight session of gains.
Take View: Small red candle
The Nifty ended Wednesday’s session near the flatline to form a small red candle on the daily chart and signaled a possible halt in the downside momentum.
The immediate support of the ascending trend line has been broken to the downside and the significant opening downside gap of 5th August remains incomplete. This is a negative sign. A decisive move below 23900 could trigger a near-term downward correction in the market. Nagaraj Shetty of HDFC Securities said immediate resistance is at 24250-24300 levels.
Open interest (OI) data showed that on the call side, the highest OI was seen at 24,200 and 24,400 strike prices, while on the put side, it was concentrated at the 24,000 strike price.
Stocks Showing Bullish Bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on counters of EPL, Paytm, Policybazaar, SBFC Finance, ICICI Securities and UTI AMC etc.
MACD is known for indicating the opposite trend 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 further weakness:
MACD showed bearish signals on the counters of Deepak Fertilizers, Jindal Saw, HDFC Bank, Clean Science & Tech, Vedanta Fashions and Avanti Feeds. A bearish crossover on MACD on these counters indicates that they have started their downward journey.
Most active stocks by value:
HDFC Bank (Rs 2,599 crore), HAL (Rs 1,839 crore), Policybazaar (Rs 1,764 crore), Mazagon Dock (Rs 1,706 crore), ICICI Bank (Rs 1,557 crore), Tata Steel (Rs 1,424 crore) ), and TCS (Rs 1,424 crore to 1,376 crore) are among the most active stocks on the NSE in terms of value. High activity on a counter in terms of value can help identify counters with the highest trading turnover in a day.
Most active stocks in terms of volume:
Vodafone Idea (Shares traded: 39 crore), Suzlon Energy (Shares traded: 14.2 crore), Yes Bank (Shares traded: 10.5 crore), Tata Steel (Shares traded: 9.7 crore), SJVN (Shares traded: 7.7 crore), HFCL (shares traded: 4.3 crore), and Zomato (shares traded: 4.1 crore) among others were among the most traded stocks of the session on NSE.
Stocks showing buying interest:
Other stocks including EPL, Policybazaar, Kaynes Technology, Sumitomo Chemical, Triveni Turbine, Trent, V-Guard saw strong buying interest from market participants as they scaled their fresh 52-week highs, indicating bullish sentiment. .
Selling Pressure in Stocks:
Shares of RBL Bank, CreditAccess Grameen, IDFC First Bank, AllCargo Logistics and Equitas Small Finance Bank touched their 52-week lows, indicating bearish sentiment on the counters.
The sentiment meter favors the bears:
Overall, market breadth favored the bears as 2,485 stocks ended in the red, while 1,442 names settled in the green.
(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)
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