He 50 elegant closed down 0.32% at 25,198 points, while the S&P BSE Sensex fell 0.25% to 82,352.
This is how analysts read the market pulse:
“Technically, the daily chart is showing a bullish belt holding candle at the breakout point of a rounding bottom pattern, which is indicating strength. On the downside, the 9-day exponential moving average (DEMA) is located near 25,090. As long as the index remains above the 25,000-25,100 levels, a ‘buy on dips’ strategy should be employed. On the upside, the index may test the 25,500-25,600 levels in the near future,” said Hrishikesh Yedve, Asit C. Mehta Investment Intermediates. Tejas Shah, Technical Research at JM Financial & BlinkX, said, “The key positive takeaway is that Nifty is still holding above the psychological support level of 25,000 on the close. The short-term moving averages are also below the price action and should continue to support the indices on any dip. On the downside, 25,175-200/25,078/24,950-25,000 are three important support levels and these levels can be used as a strict trailing stop for existing long positions. On the upside, the immediate resistance for Nifty is at 25,300-325 levels and the next crucial resistance zone is at 25,450-500 levels. Overall, bulls should continue to have the upper hand going forward.”
That said, let’s take a look at what some key indicators suggest for Thursday’s action:
US Market:
Stocks rose on Wall Street on Wednesday, rebounding from their worst performance in a month. The S&P 500 gained 0.4% in morning trading after falling 2.1% the day before. The Dow Jones Industrial Average added 201 points, or 0.5%, to 41,135. Meanwhile, the Nasdaq fell 0.4% as of 11:08 a.m. Eastern Time.
In other news, U.S. job openings unexpectedly fell in July, suggesting a possible slowdown in hiring. The Labor Department reported 7.7 million job openings, down from 7.9 million in June and the lowest level since January 2021. Openings have been declining throughout the year, from nearly 8.8 million in January. The overall report was mixed, however, as hiring picked up last month.
Tech Outlook: Bullish Counterattack Candlestick
Nifty closed below the 25,200 mark but formed a bullish counter candlestick pattern on daily charts and signaled a buying opportunity on dips in the market.
Currently, Nifty is hovering at the crucial support of the group around 25000 levels (uptrend line and 10-day EMA). The bullish pattern, with higher highs and higher lows, is visible on the daily chart, said Nagaraj Shetti of HDFC Securities.
“The short-term bullish trend status remains intact for Nifty and any consolidation and minor dip towards 25,000 mark is expected to be a buying opportunity. Nifty can be expected to rally towards fresh all-time highs around 25,350-25,400 soon,” he said.
Open interest (OI) data revealed that the highest OI occurred on the buy side with strike prices of 25,300 and 25,500, while on the sell side, it was concentrated at the strike price of 25,000.
Stocks showing bullish bias:
The Moving Average Convergence Divergence (MACD) momentum indicator showed bullish trading on the counters of OFSS, Sky Gold, Bombay Burmah Trading Corporation, Crisil, Ramco Systems, Mallcom and Jupiter Life Line Hospitals, 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 Inox Wind Energy, Bharat Rasayan, Info Edge, Protean eGov Technologies, TCS, Strides Pharma, TVS Srichakra, 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 Ship (Rs 3,728 crore), HDFC Bank (Rs 2,023 crore), RIL (Rs 1,811 crore), ICICI Bank (Rs 1,672 crore), HAL (Rs 1,544 crore), Zomato (Rs 1,425 crore) and Piramal Pharma (Rs 1,386 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 counters with higher trading volumes on the day.
Most active stocks in terms of volume:
Vodafone Idea (shares traded: Rs 28.1 crore), YES Bank (shares traded: Rs 7.5 crore), Piramal Pharma (shares traded: Rs 6.6 crore), Zomato (shares traded: Rs 5.9 crore), JM Financial (shares traded: Rs 5.6 crore), HFCL (shares traded: Rs 4.4 crore) and Tata Steel (shares traded: Rs 4 crore), among others, were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of CCL Products, Piramal Pharma, Jubilant Ingrevia, PNB Housing, Biocon, FDC and HPCL, among others, witnessed strong buying interest from market participants as they touched their fresh 52-week highs, indicating bullish sentiment.
Stocks see selling pressure:
No major stocks hit their 52-week lows on Wednesday.
Sentiment meter favors bears:
Overall, market breadth favored the bears as 2,043 stocks ended in the red, while 1,910 names closed in the green.
(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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