The NSE 50 ingenious The index rose 0.29% to 24,770 and the S&P BSE Sensex added 0.13% to 80,905.
Investors are awaiting minutes from the Federal Reserve’s latest policy meeting, due later in the day, and Chairman Jerome Powell’s speech later this week for clues on the path of rate cuts.
This is how analysts read the market pulse:
“On the daily charts, we can observe that Nifty is heading towards 24830-24900 zone. Sectoral rotation is helping the index to sustain at elevated levels. A negative divergence is developing in the momentum indicator, so the up move is likely to be slow and may encounter intraday pullbacks. In terms of levels, 24550-24500 will act as a crucial support zone and on the upside, 24900-24960 will act as an immediate hurdle from a short-term perspective,” said Jatin Gedia of Sharekhan.
Tejas Shah of JM Financial & BlinkX said, “The short-term moving averages are just below the price action and should continue to support the indices on every dip. Support for Nifty is now seen at 24,650 and 24,500 levels. On the upside, the immediate resistance for Nifty is at 24,850 level and the next resistance is at 25,000. Overall, until this higher highs syndrome continues, one should not fight the trend.”
That said, let’s take a look at what some key indicators suggest for Thursday’s action:
US Market:
Wall Street stocks rose Wednesday morning, boosted by strong results from retailer Target and in anticipation of minutes from the Federal Reserve meeting. Target, Walmart’s smaller North American competitor, rose more than 15% after reporting a rise in comparable-store sales in its second quarter after a series of declines.
After about 10 minutes of trading, the Dow Jones Industrial Average was up 0.1% at 40,888.95. The S&P 500 gained 0.3% to 5,613.33, while the tech-heavy Nasdaq Composite Index also advanced 0.3% to 17,864.27.
Technical view:
The Nifty closed Wednesday’s session 71 points higher and formed a reasonable positive candle on the daily chart. The major index continues to make a higher high on both the daily and weekly charts.
The short-term trend of Nifty remains positive with a range-bound behaviour. The market is now set to challenge another downside opening resistance of August 2 around 24960. Therefore, the index can be expected to move towards 24960 and 25100 levels in the coming week. The immediate support is placed at 24650 levels, said Nagaraj Shetti of HDFC Securities.
Stocks showing bullish bias:
The Moving Average Convergence Divergence (MACD) momentum indicator showed bullish trading on the counters of Nuvama Wealth Management, OFSS, CAMS, Persistent Systems, Bombay Burmah Trading Corporation, and Bajaj Holdings & Investment, among others.
The MACD is known for signaling trend changes in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the security’s price may experience an upward movement and vice versa.
Actions that indicate weakness in the future:
The MACD showed bearish signals on the counters of Cera Sanitaryware, V-Mart Retail, Torrent Pharma, Natco Pharma, and Granules India, among others. The bearish crossover of the MACD on these counters indicated that they had just started their bearish journey.
Most active stocks in terms of value:
Mazagon Dock Shipbuilders (Rs 4,242 crore), HDFC Bank (Rs 3,869 crore), Nykaa (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), among others, were among the most active stocks on NSE in terms of value. Higher activity on a counter in terms of value can help identify the counters with higher trading volumes on the day.
Most active stocks in terms of volume:
Vodafone Idea (shares traded: Rs 24.2 crore), Alok Industries (shares traded: Rs 17.7 crore), Nykaa (shares traded: Rs 10.8 crore), YES Bank (shares traded: Rs 8.3 crore), HFCL (shares traded: Rs 8 crore), Tata Steel (shares traded: Rs 4.9 crore) and CESC (shares traded: Rs 4 crore), among others, were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Deepak Fertilisers, Nykaa, Century Textiles, Just Dial, CESC, GSK Pharma and Phillips Carbon, among others, witnessed strong buying interest from market participants as they hit their fresh 52-week highs, indicating bullish sentiment.
Stocks see selling pressure:
No major stocks hit their 52-week lows on Wednesday.
Sentiment gauge favors bulls:
Overall, market breadth favored the bulls as 2,607 stocks ended in the green, while 1,345 names closed in the red.
(Disclaimer: The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of the Economic Times)
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