The NSE Nifty 50 index rose 0.29% to 24,770 and the S&P BSE Sensex rose 0.13% to 80,905.
Investors await the minutes of the Fed’s latest policy meeting later in the day and Chair Jerome Powell’s address later this week for clues on the path to a rate cut.
Here’s how analysts read the pulse of the market:
“On the daily chart, we can observe that Nifty is moving towards 24830-24900 zone. Sector rotation is helping the index to remain at elevated levels. Negative divergence is developing on the momentum indicator so the upward move is likely to be slow. Intraday A pullback may be encountered.
Tejas Shah of JM Financial & BlinkX said, “The short-term moving average is slightly below the price action and should continue to support the index on every dip. Support for Nifty is now seen at 24,650 and 24,500 levels. On the upside, for Nifty The immediate resistance is at 24,850 level and the next resistance is overall at 25,000, no one should fight the trend as long as this high high syndrome continues.”
That said, here’s a look at what some key indicators suggest for Thursday’s action:
US Market:
Wall Street stocks rose early Wednesday, boosted by strong results from big-box retailer Target and anticipation of Federal Reserve meeting minutes. Target, Walmart’s smaller North American competitor, rose more than 15% after reporting an increase in comparable store sales in its second quarter after a series of declines.
In about 10 minutes of trading, the Dow Jones Industrial Average rose 0.1% to 40,888.95. The S&P 500 rose 0.3% to 5,613.33, while the tech-heavy Nasdaq Composite Index also added 0.3% to 17,864.27.
Tech View:
The Nifty ended the Wednesday session 71 points strong to form a reasonably positive candle on the daily chart. The headline index is still making higher highs on both the daily and weekly charts.
The short-term trend of Nifty is turning positive with range-bound action. The market is now ready to challenge the second opening down gap resistance of 2nd August around 24960. Hence, one can expect the index to move towards 24960 and 25100 levels in the next one week. Nagaraj Shetty of HDFC Securities said immediate support is placed at 24650 level.
Stocks Showing Bullish Bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on counters of Nuwama Wealth Management, OFSS, CAMS, Persistent Systems, Bombay Burma Trading Corporation and Bajaj Holdings & Investments.
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 Cera Sanitaryware, V-Mart Retail, Torrent Pharma, Natco Pharma, and Granules India. A bearish crossover on MACD on these counters indicates that they have started their downward journey.
Most active stocks by value:
Mazagon Dock Shipbuilders (Rs. 4,242 crore), HDFC Bank (Rs. 3,869 crore), Nayaka (Rs. 2,295 crore), ICICI Bank (Rs. 2,020 crore), Angel One (Rs. 1,956 crore), PNB Housing (Rs. 1,335 crore), and SBI (Rs 1,190 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: 24.2 crore), Alok Industries (Shares traded: 17.7 crore), Nayaka (Shares traded: 10.8 crore), Yes Bank (Shares traded: 8.3 crore), HFCL (Shares traded: 8 crore), Tata Steel (Shares Traded: 4.9 Crore), and CESC (Shares Traded: 4 Crore) among others were among the most traded stocks of the session on NSE.
Stocks showing interest in buying:
Shares of Deepak Fertilizers, Naika, Century Textiles, Just Dial, CESC, and GSK Pharma and Philips Carbon 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 touched their 52-week lows on Wednesday.
The sentiment meter favors the bulls:
Overall, market breadth favored the bulls as 2,607 stocks ended in the green, while 1,345 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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