The Nifty 50 index was down 0.21% at 25,145 points, while the S&P BSE Sensex was down 0.18% at 82,201. Indices posted losses for the second straight session following a record rally.
Here’s how analysts read the pulse of the market:
“Sentiment remains indecisive, as the index remained in the range of 25100 to 25200. Going forward, a clear directional trend may not emerge as long as the index remains in this range. A decisive move above 25200 would likely push the index towards 25350/25500 at the lower end. Support is placed at 25080/24950,” said Rupak De of LKP Securities.
Sharekhan’s Jatin Gedia said, “On the daily chart we can observe that the price structure has weakened after the gap down in the previous trading session. The uptrend is still intact but there is a high possibility of consolidation in the range of 25000-25350 in the next few trading sessions. 25100- 25050 should be used as a buying opportunity placed at 25300 – 25350.”
That said, here’s a look at what some key indicators suggest for Friday’s action:
US Market:
On Thursday, the Nasdaq and S&P 500 rose slightly after a survey of services activity eased concerns about an economic slowdown. The Institute for Supply Management reported that service sector activity rose to 51.5 in August, beating expectations.
The focus remains on the Federal Reserve’s expected interest rate cut later this month. Traders now see a 55% chance of a 25-basis point decline with 45% betting on a 50-bps cut.
In early trade, the Dow fell 0.03%, while the S&P 500 and Nasdaq rose 0.28% and 0.83%, respectively.
European share:
Europe’s main stock indexes hit two-week lows as technology stocks fell amid fears of a U.S. slowdown and weakness in China. The pan-European STOXX 600 index fell 1%, with major regional markets down between 0.5% and 1%.
The STOXX volatility index hit its highest level since August 9. Technology stocks led the decline, falling more than 3% to a one-month low, reflecting a selloff in Wall Street tech shares due to disappointing economic data.
Take View: Small red candlestick
The Nifty formed a small red candle on the daily chart as it ended Thursday’s trading session on a slightly negative note as the index opened a gap but failed to sustain and slipped from its highs, falling 53.60 points to 25,145. was closed.
Nifty’s short-term trend remains volatile with a weak bias. Further weakness from here may find key lower support around 25000-24900 level before again showing a sustained upside bounce from the low. Nagaraj Shetty of HDFC Securities said immediate resistance is placed at 25300.
In the open interest (OI) data, the highest OI was seen at 25,200 and 25,150 strike prices on the call side, while on the put side, the highest OI was seen at 25,150 strike price.
Stocks Showing Bullish Bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on counters of Vankies, Ethos, Cholamandalam Financial Holdings, Suven Pharma, Asian Paints, Sun Pharma, Anant Raj and TTK Healthcare.
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 Trent, Dixon Technologies, Page Industries, Power Mech Projects, VST Industries and PB Fintech. A bearish crossover on MACD on these counters indicates that they have started their downward journey.
Most active stocks by value:
Zomato (Rs 2,944 crore), Max Financial (Rs 2,749 crore), RIL (Rs 2,445 crore), Mazagon Dock (Rs 2,243 crore), HDFC Bank (Rs 1,882 crore), Titan Company (Rs 1,275 crore) ), and GMR Infra (Rs Rs 1,166 crore) was one of 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: 28.6 crore), GMR Infra (Shares traded: 12.3 crore), Zomato (Shares traded: 11.5 crore), Easy Trip Planners (Shares traded: 10.6 crore), JM Financial (Shares traded: 7.6 crore), Suzlon Energy (shares traded: 5.6 crore), and Yes Bank (shares traded: 5.6 crore) among others were among the most traded stocks of the session on NSE.
Stocks showing interest in buying:
Shares of Caplin Point, UTI AMC, KEC International, Cholamandalam Financial Holdings, Vijaya Diagnostic, Avenue Supermart and Concorde Biotech saw strong buying interest from market participants as they scaled their fresh 52-week highs, indicating bullish sentiment. is
Selling Pressure in Stocks:
No major stocks touched their 52-week lows on Thursday.
The sentiment meter favors the bulls:
Overall, market breadth favored the bulls as 2,249 stocks ended in the green, while 1,679 names settled in the green.
(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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