Analysts’ Market Analysis:
“Optimism has returned today after three days of consolidation before the FOMC meeting. As the market’s uncertainty regarding monetary policy is expected to change, we are unlikely to see another Federal Reserve rate hike in 2023. This is due to the rapid decrease in inflation and its projected further decrease. However, short-term interest rates are expected to remain high as core inflation remains above the long-term average,” said Vinod Nair, Head of Research at Geojit Financial Services.
“The minor downward correction seen in the past few sessions seems to have completed, and the market appears to be bouncing back. A decisive move above 19,850 is likely to open the doors for a higher target of 20,050 in the near term. Immediate support is at 19,600 levels,” said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
With that in mind, here’s an overview of what some key indicators are suggesting for Thursday’s trading:
US Market:
The S&P 500 and Nasdaq witnessed a slight decline on Wednesday as investors assessed mixed earnings from Microsoft and Alphabet before a potential Federal Reserve rate hike that could lead to the highest borrowing costs since the global financial crisis.
Microsoft witnessed a 3.3% dip after outlining an ambitious spending plan to meet the demand for its new AI-powered services. Nonetheless, the Windows maker exceeded expectations for quarterly revenue and profit.
At 9:48 a.m. ET, the Dow Jones Industrial Average rose by 9.99 points or 0.03% to 35,448.06, the S&P 500 fell by 5.08 points or 0.11% to 4,562.38, and the Nasdaq Composite decreased by 22.51 points or 0.16% to 14,122.04.
European Shares:
European shares are likely to end a six-day winning streak today, impacted by underwhelming results from French luxury brand LVMH and anticipation surrounding the Federal Reserve’s interest rate decision later in the day.
The pan-European STOXX 600 index shed 0.5% after achieving its longest winning streak since January On Tuesday.
LVMH shares fell by 4.4% to a two-week low as analysts noted that the luxury goods sector’s overall growth trajectory appeared less impressive despite the firm’s in-line increase in sales.
Tech View: Small Positive Candle
A small positive candle was formed on Wednesday’s daily chart with a minor upper shadow. This pattern suggests an upward bounce in the market from the immediate support of the 10-day EMA around 19,650 levels. However, the market is currently facing resistance at 19,800 levels.
Stocks Showing Bullish Bias
Momentum indicator Moving Average Convergence Divergence (MACD) indicates bullish sentiment for REC, Piramal Enterprises, Balkrishna Industries, Amber Enterprises, Rupa and Company, among others.
MACD is known for indicating trend reversals in traded securities or indices. When the MACD crosses above the signal line, it signifies a bullish signal indicating potential upward movement in the security’s price, and vice versa.
Stocks Signaling Weakness Ahead
MACD exhibits bearish signs for Federal Bank, IOC, Can Fin Homes, Devyani International, Wipro, and others.
Bearish crossover on the MACD suggests that these stocks have just begun their downward journey.
Most Active Stocks in Value Terms
HDFC Bank (Rs 2,099 crore), Tata Motors (Rs 2,060 crore), Bajaj Finance (Rs 1,681 crore), RIL (Rs 1,631 crore), and L&T (Rs 1,545 crore) were the most active stocks on NSE in terms of value. High activity in these stocks can indicate high trading turnover during the day.
Most Active Stocks in Volume Terms
Vodafone Idea (Shares traded: 43.28 crore), PNB (Shares traded: 16.6 crore), YES Bank (Shares traded: 11.38 crore), IRFC (Shares traded: 8.52 crore), and Reliance Power (Shares traded: 6.4 crore) were among the most traded stocks in NSE’s session.
Stocks Showing Buying Interest
Shares of Jyothy Labs, RBL Bank, Motilal Oswal, Castrol India, Sarda Energy, among others, witnessed strong buying interest as they reached new 52-week highs, signaling a bullish sentiment.
Stocks Seeing Selling Pressure
Shares of Orient Bell, Viji Finance, Zee Learn, Vinny Overseas, and others that hit their 52-week lows indicated a bearish sentiment on these counters.
Sentiment Meter Favours Bulls
Overall, the market breadth favored bulls with 1,839 stocks ending in the green, while 1,708 stocks settled in the red.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times.)