Here’s how analysts interpret the market pulse:
“The domestic market began to adopt a defensive stance as investors awaited crucial inflation data for both India and the US. The deflationary trend in China and the downgrade of US mid- and small-sized banks affected market sentiment. However, a late recovery in the domestic market was backed by a positive uptick in the European market and hope of an optimistic RBI policy not impacting domestic economic growth,” Vinod Nair, Head of Research at Geojit Financial Services, said.
“Nifty formed a Hammer-type bullish candle with a long lower shadow on the daily charts. Now, it needs to hold above the 19,560 zones for an up move towards the 19,700 and 19,800 zones, whereas supports are located at 19,500 and 19,420 zones,” Chandan Taparia of Motilal Oswal commented.
That said, here’s a look at what some key indicators suggest for Thursday’s action:
US market
Wall Street’s main indexes fell on Wednesday ahead of a key inflation report this week, with investors also assessing remarks from U.S. Federal Reserve officials.
Rate-sensitive megacap growth and technology stocks, that have led the Wall Street rally this year, such as Nvidia, Apple and Tesla were down between 1.3% and 4.6%. At 11:33 a.m. ET, the Dow Jones Industrial Average was down 154.86 points, or 0.44%, at 35,159.63, the S&P 500 was down 27.85 points, or 0.62%, at 4,471.53, and the Nasdaq Composite was down 164.88 points, or 1.19%, at 13,719.44.European shares
European shares hit a one-week high on Wednesday, with Italian lenders rebounding from previous session’s sharp losses after the government eased its stance on a new banking tax.
The pan-European STOXX 600 added 1.0%, with technology and bank leading gains.
Euro zone banks gained 1.9% after a 3.5% slump a day earlier, as Italy’s government announced late on Tuesday a cap on a windfall tax for the country’s lenders. It clarified that the 40% windfall tax would not amount to more than 0.1% of their total assets.
Tech View: Reasonable positive candle
A reasonably positive candle was formed on the daily chart on Wednesday with a long lower shadow. Technically, this pattern indicates a bullish Hammer-type pattern (not a classical one), but its placement is not ideal. The negative chart pattern like lower top and bottom remains intact, but no confirmation of any lower top reversal pattern has emerged yet.
Stocks showing bullish bias
The Momentum indicator Moving Average Convergence Divergence (MACD) displayed bullish trade setups on the counters of JSW Energy, NLC India, Bank of India, and Snowman Logistics, among others.
The MACD is renowned for signaling trend reversals in traded securities or indices. When the MACD crosses above the signal line, it provides a bullish signal, suggesting the security’s price might see an upward movement, and vice versa.
Stocks signaling weakness ahead
The MACD indicated bearish signs on counters like Policy Bazaar, Tata Chemicals, and Ashok Buildcon among others. A bearish crossover on the MACD for these counters suggests they are just starting their downward trajectory.
Most active stocks in value terms
HDFC Bank (Rs 2736 crore), Gland Pharma (Rs 2062 crore), ICICI Bank (Rs 1873 crore), and Adani Enterprises (Rs 1445 crore) were among the most active stocks on the NSE in value terms. High activity on a counter in terms of value can help identify the counters with the highest trading turnovers for the day.
Most active stocks in volume terms:
Suzlon Energy (Shares traded: 20.47 crore), IRFC (Shares traded: 17.08 crore), Reliance Power (Shares traded: 14.02 crore), Zomato (Shares traded: 10.92 crore), and Bank of Maharashtra (Shares traded: 9.10 crore) were among the most traded stocks during the session on NSE.
Stocks showing buying interest
Shares of V-Guard, Zen Tech, Religare, NLC India, and Safari witnessed robust buying interest from market participants, reaching their fresh 52-week highs, indicating bullish sentiment.
Stocks experiencing selling pressure
Shares of Reliance Home Finance, Vinny Overseas, Pentagon Rubber, and SS Infrastructure were among those that touched their 52-week lows, signaling bearish sentiment for these counters.
Sentiment meter favours bulls:
In conclusion, the market breadth leaned towards bulls: 1,969 stocks ended in the green, while 1,631 settled in the red.
(Disclaimer: Recommendations, suggestions, views, and opinions expressed by the experts are their own. These do not represent the views of Economic Times)