Market Ahead: 10 Things That Will Determine D-Street Action Thursday

India’s benchmark Nifty 50 on Tuesday snapped a seven-day losing streak on gains in HDFC Bank and Mahindra & Mahindra. Analysts attributed the rise in both benchmarks to a short-term relief rally after shares slipped into correction territory recently.

The NSE Nifty 50 rose 0.28% to 23,518, ending its longest losing streak since February 28, 2023. The BSE Sensex rose 0.31% to 77,578 after a four-session decline. While the benchmark rose around 1.4% during the session, they pared most of the gains in the final hour.

Indian equity markets remained closed on Wednesday due to the Maharashtra assembly elections.

Here’s how analysts pulse the market:

“Currently, the Nifty is finding support around the 200-day moving average, which is positioned near the 23,500 mark (+/- 50 points) with support levels at 23,350 and 23,200. On the upside, the immediate resistance for the Nifty is at 23,500 and 23,60 is in between. with the next resistance at 23,650 Around 23,800, Nifty is likely to remain volatile in the 23,200-23,800 range,” said Tejas Shah, JM Financial and BlinkX.

Sharekhan’s Jatin Gedia added, “The Nifty closed positive by 65 points, but closed well off intraday highs, indicating difficulty in sustaining the highs. The 40-hour moving average (23,733) acted as strong resistance.” As long as the index holds above this, we maintain a negative trend and the next phase of decline may begin, we expect 23,180 holding, which is aligned with the 61.82% Fibonacci retracement level.”

With that, here’s a look at what some key indicators suggest for Thursday’s action:

US Market:
Wall Street’s major indexes were little changed on Wednesday, as investors awaited quarterly results from AI giant Nvidia, while also keeping an eye on rising geopolitical tensions between Russia and Ukraine.

The Dow Jones Industrial Average opened up 27.1 points, or 0.06%, at 43,296.05.

The S&P 500 fell 2.6 points, or 0.04%, to 5,914.34 at the open, while the Nasdaq Composite shed 16.2 points, or 0.09%, to 18,971.311.

European share:
Europe’s main stock index was set to snap a three-session losing streak on Wednesday as technology stocks rebounded, while safe-haven bids took a backseat as investors eyed ongoing developments surrounding the Ukraine-Russia conflict.

A day after Russia lowered its threshold for a nuclear strike, Reuters reported Vladimir Putin’s openness to discussing a Ukraine ceasefire deal with US President-elect Donald Trump, provided he rejects key regional concessions and Kiev abandons plans to join NATO.

The pan-European STOXX 600 was up 0.5% by 0920 GMT, amid investors’ rush to safe-haven assets after hitting a three-month low on Tuesday.

Major stock markets in Germany, France and Spain advanced between 0.4% and 0.9%.

Tech View:
Technically, the index has formed a doji candle on the daily chart, indicating uncertainty. The doji high is approaching the 23,780 level, which will act as critical resistance. On the downside, the 50-week simple moving average (WSMA) near 23,300 provides short-term support. According to Hrishikesh Yedve of Asit C Mehta Investment Intermediates, as long as the index remains below 23,800, the short-term trend will remain bearish.

The open interest (OI) data shows the highest OI on the call side at 23,500 and 23,600 strike price, while the highest OI on the put side is 23,500, followed by 23,400.

Bullish Stocks:
MACD indicator shows bullish signs for Craftsman Automation, Triveni Turbine, Zee Entertainment, Netweb Technologies, Kalyan Jewelers and PTC Industries. A bullish crossover in the MACD indicates a potential upside move.

Weaker Stocks:
MACD showed bearish signals for Page Industries, Rashtriya Chemicals, Tanla Platforms, HCL Tech, L&T, and Rainbow Children’s Medicare, indicating possible downward movement.

Most Active Stocks (Value Terms):
HDFC Bank (Rs 4,433 crore), Axis Bank (Rs 2,170 crore), RIL (Rs 1,794 crore), M&M (Rs 1,545 crore), ICICI Bank (Rs 1,443 crore), Zomato (Rs 1,166 crore) , and BSE (Rs 1,116 crore) were among the most active stocks by value.

Most Active Stocks (Volume Terms):
Vodafone Idea (33.8 crore shares), Suzlon Energy (7.4 crore), Yes Bank (5.7 crore), Zee Entertainment (5.4 crore), GMR Infra (4.3 crore), Zomato (4.2 crore), and Tata Steel (3.7 crore) . Most traded stocks by volume.

Stocks with buying interest:
Strong buying interest was seen in Federal Bank, Indian Hotels, ABSL AMC, Fortis Healthcare, Coforge and Mastec, which touched a fresh 52-week high, indicating bullish sentiment.

Stocks with selling pressure:

Honasa Consumer, Vodafone Idea, IGL, Ujjivan Small Finance Bank, IndusInd Bank, Star Health and Akums Drugs touched their 52-week lows, indicating bearish sentiment.

Market Sentiment:
Market breadth favored the bulls with 2,410 stocks closing in the green, while 1,559 stocks closed in the red.

(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)