The NSE Nifty 50 index rose 0.17% to 24,811. The S&P BSE Sensex rose 0.18% to 81,053.
Here’s how analysts read the pulse of the market:
“On the daily chart, the Nifty continues to move towards the upper Bollinger band. Moreover, the index is holding above the crucial near-term moving average. As long as it remains above 24,650, the sentiment may continue to be bullish. On the other hand, The current rise may extend to 25,000 in the near term,” said Rupak De of LKP Securities.
Tejas Shah of JM Financial & BlinkX said, “The short-term moving averages are slightly below price action and should continue to support the indices on every dip. Support for the index is now seen at 24,775 and 24,600-650 levels. On the upside, the Nifty The immediate resistance is at the 24,850 level and the next resistance is at the 25,000 mark.”
That said, here’s a look at what some key indicators suggest for Friday’s action:
US Market:
On Thursday, Wall Street’s major indexes fell amid choppy trading as rising Treasury yields weighed on stocks. The 10-year Treasury yield rose to 3.8502% after falling for four sessions.
Megacap and growth stocks were mostly lower, with Tesla losing 3.2% and the Philadelphia Semiconductor Index down 2.4%. Eight of the 11 major S&P sectors were lower, with consumer discretionary and information technology experiencing the biggest declines. Investors are closely watching the Economic Symposium in Jackson Hole, where Federal Reserve Chairman Jerome Powell is scheduled to speak.
As of 11:42 am ET, the Dow Jones was down 0.29%, the S&P 500 was down 0.42%, and the Nasdaq was down 0.81%.
European Stocks:
Europe’s main stock index rose on Thursday, led by gains in the healthcare and retail sectors. The pan-European STOXX 600 closed 0.4% higher, its best level this month. Retail stocks rallied, led by an 11% jump in JD Sports after strong sales growth. Healthcare also hit a record high, with Novo Nordisk’s stock up 2.4%.
Tech View:
The Nifty ended Thursday’s weekly expiration up 41 points and formed a high high-high low formation for the fifth consecutive session. A bearish candlestick formation was seen in the daily chart as the index closed lower than its opening levels.
Now Nifty will have to continue to hold above 24700 zone to move towards 25000 and 25100 zone while support will be placed at 24700 after 24550 zone, said Chandan Taparia of Motilal Oswal.
“We have seen a decline in volatility with an increase in the put call ratio indicating that the overall bullish bias in the market may persist. The VIX has recently declined from 23 to 13 zones and lower volatility indicates an overall bullish trend in the market,” he said.
The RSI is trending upwards near the 60.46 level, indicating bullish momentum in the market.
Stocks Showing Bullish Bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on counters of Varroc Engineering, Natco Pharma, IndiGo, Indian Hotels, Piramal Enterprises, and Endurance Technologies.
MACD is known for indicating the opposite trend in traded securities or indices. When 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 Ethos, Suzlon Energy, Embassy Office Parks REIT and Chaman Lal Setia Exports. A bearish crossover on MACD on these counters indicates that they have started their downward journey.
Most active stocks by value:
Kalyan Jewelers (Rs 2,161 crore), Zomato (Rs 1,924 crore), HDFC Bank (Rs 1,738 crore), RIL (Rs 1,564 crore), Mazagon Dock Ship (Rs 1,340 crore), Paytm (Rs 1,205 crore) ), and Shyam Metallics (Rs. 1,205 crore) to Rs. 1,134 crore) were 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: 27.8 crore), Alok Industries (Shares traded: 14 crore), Yes Bank (Shares traded: 8.5 crore), Zomato (Shares traded: 7.3 crore), HFCL (Shares traded: 5.5 crore), Suzlon Energy (Shares Traded: 4.1 Crore), and Nyka (Shares Traded: 4 Crore) among others were among the most traded stocks of the session on NSE.
Stocks showing buying interest:
Shares including Shyam Metallics, Netco Pharma, Jindal Saw, Balrampur Chinese, Trent, TVS Motor and CESCC saw strong buying interest from market participants as they scaled their fresh 52-week highs, indicating bullish sentiment.
Selling Pressure in Stocks:
No major stocks hit their 52-week lows on Thursday.
The sentiment meter favors the bulls:
Overall, market breadth favored the bulls as 2,409 stocks ended in the green, while 1,548 names settled in the red.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of Economic Times)
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