The Nifty 50 closed down 0.34% at 24,971 points, while the S&P BSE Sensex fell 0.39% at 81,501 points.
This is how analysts read the pulse of the market:
“The Nifty has fallen after a brief consolidation on the hourly time frame, suggesting growing bearish sentiment among traders. The recent weakness has taken Nifty below the 38.20% retracement of the previous rise from 24,694 to 25,212 Sentiment now looks slightly bearish, with immediate support at 24,900 could intensify weakness, potentially dragging Nifty to 24,700. On the upside, 25,000 remains a strong resistance, only a decisive break above this level can trigger a rally. directional rally in the market,” Rupak said. From LKP Securities.
Jatin Gedia of Sharekhan said: “On the daily charts we can see that the nifty has been trading in the range of 24900 – 25200 since the last six trading sessions. We expect this price action to continue for the next two trading sessions. A Decisive breakout on both sides will lead to trend moves in that particular direction. We expect this consolidation to break to the upside and target 25360 – 25500 levels.”
That said, here’s a look at what some key indicators suggest for Thursday’s action:
US market:
The Dow Jones regained some ground on Wednesday, while the S&P 500 and Nasdaq faced declines, mainly due to the decline of mega-cap technology stocks. However, the broader market benefited from positive quarterly results from banks, especially Morgan Stanley.
Morgan Stanley shares rose 6.7%, following strong earnings reports and a significant rise in investment banking revenue, along with peers like JPMorgan Chase. The financial sector increased by 0.7%, with banks in general index up to 1.1%. An index tracking regional banks posted a 1.3% increase.
Despite these gains, the benchmark index was held back by the Communication Services sector, which fell 0.7%, largely due to a 1.5% loss in MetaPlataformas. Among other mega-cap stocks, Apple fell 1.4% after hitting an all-time high in the previous session, while Microsoft fell 1.3%.
Technical view: small negative candle
A small negative candle with a small upper shadow formed on the daily chart. Technically, this pattern reflects continued range-bound action in the market and the Nifty is currently near the lower range around 24,900 levels.
After holding above the daily 10 and 20 period EMA in recent months, said moving average supports have been broken down recently and (10 and 20 period EMA) are now acting as a hurdle according to the concept of change. in polarity around 25,150-25,200 levels.
Nifty’s underlying trend remains choppy with weak bias. A sustainable move only above 25,200 and strong weakness below 24,800-24,700 could generate strong momentum in the market on both sides, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,100 and 25,000 strike prices, while on the put side, the highest OI was 25,000 exercise price followed by 24,900.
Stocks showing a bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on the counters Kalyani Investment Company, Garware Technical Fibers, Medicare for Rainbow Kids, Godrej Propertiesand Goldiam International inter alia.
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 price of the security you can see an upward movement and vice versa.
Stocks that indicate weakness in the future:
The MACD showed bearish signs on the counters Kaycee Industries, Trent, Coforge, LTIMindtreeand Express Blue Dart inter alia. The bearish MACD crossover on these counters indicated that they have just begun their downward journey.
Most active stocks in terms of value:
Angel One (Rs 4,315 crore), BSE (Rs 2,862 crore), RIL (2,701 million rupees), HDFC Bank (Rs 1,738 crore), HDFC ANC (Rs 1,610 crore), CDSL (1,344 crores), and Railway Corp (Rs 1,303 crore), among others, were among the most active stocks on NSE in terms of value. Greater activity on a counter in terms of value can help identify the counters with the highest trading volume during the day.
Most active stocks in terms of volume:
JP Power (Shares traded: 6.5 million rupees), Suzlon Energy (Shares traded: 4.7 million rupees), YES Bank (Shares traded: 4.3 million rupees), RailTel Corp (Shares traded: 2.9 million of Rs), Tata Steel (Shares Traded: Rs 2.8 Crore), NHPC (Shares Traded: Rs 2.7 Crore) and Bank of Maharashtra (Shares Traded: Rs 2.2 Crore), among others, were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of ABSL AMC, UTI AMC, Amber Enterprises, Nuvama Wealth Management, HDFC AMC, CAMS and GE T&D India, among others, witnessed strong buying interest from market participants as they scaled their new highs of 52 weeks, indicating bullish sentiment.
Stocks experiencing selling pressure:
Shares of CreditAccess Grameen and Equitas Small Finance Bank hit their 52-week lows, indicating bearish sentiment on the counter.
Sentiment Meter Bulls:
Overall, market breadth favored the bulls as 1,995 stocks ended in the green, while 1,987 names were in the red.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. They do not represent the views of the Economic Times)
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.