The 30 actions BSE Sensex fell 495 points, or 0.61%, to close at 81,006, while the broader NSE Skilled fell 221 points, or 0.89%, ending at 24,749.8. The Nifty50 also hit a two-month low during the session.
This is how analysts read the pulse of the market:
“The Nifty has found initial support in the 24,700-24,750 zone. On the daily chart, the Nifty has broken a bearish flag pattern, suggesting a possible bearish move in the near term. The RSI is showing a bearish crossover and is moving down However, this may not be the ideal level to initiate short positions, as the index has seen a strong correction and is close to a double bottom support, which could trigger a short-term recovery towards 25,000. , a decisive fall below 24,700 could lead to a significant correction in the market,” said Rupak De of LKP Securities. Tejas Shah of JM Financial & BlinkX, said: “Technically, the Nifty index was consolidating in a narrow range i.e. between 25,250 and 24,950 for the last few days and gave a mini crash in today’s trading session once it closed below 24,950 levels. Support for Nifty is now seen at 24,700-750 and on the upper side, the immediate psychological resistance for Nifty is at 25,000 Mark and the next crucial resistance zone is at 25,250- levels. 300. Overall, the bears should continue to have the upper hand going forward.”That said, here’s a look at what some key indicators suggest for Friday’s action:
US market:
U.S. stocks are trading near record highs on Thursday, buoyed by signs of a resilient economy. The S&P 500 gained 0.1% in midday trading, approaching its record high from earlier this week. The Dow Jones Industrial Average added 99 points, or 0.2%, continuing its climb from an all-time high set the previous day, while the Nasdaq Composite rose 0.2% as of 11 a.m. ET.
Leading the charge were Nvidia and other chip companies, following better-than-expected quarterly earnings from Taiwan Semiconductor Manufacturing Co. TSMC attributed its success to strong demand for smartphones and artificial intelligence, resulting in a 13.1% increase in its US shares.
Meanwhile, Treasury yields rose in the bond market, reflecting the latest positive economic reports.
European actions:
European stocks maintained their gains on Thursday after the European Central Bank announced a widely expected 25 basis point interest rate cut, although it did not provide new guidance on future actions.
The STOXX 600 index was up 0.7% at 1225 GMT, recovering from a two-day decline.
This latest cut marks the ECB’s second consecutive reduction of 25 basis points, the first for the bank in 13 years.
Technical view:
On the daily chart, Nifty formed a big red candle, indicating weakness. However, the index is approaching the previous demand zone of 24,690.
If Nifty sustains below the 24,690 level, further declines are likely, taking it towards 24,500-24,400 levels. On the upside, immediate resistance lies at the psychological level of 25,000, followed by the 21-day exponential moving average (21-DEMA) at 25,185, said Hrishikesh Yedve of Asit C. Mehta Investment Intermediates.
In the open interest (OI) data, the highest OI on the buy side was observed at 24,750 and 254,800 strike prices, while on the sell side, the highest OI was at the 24,750 strike price followed by 24,700.
Stocks showing a bullish bias:
The Moving Average Convergence Divergence (MACD) Momentum Indicator showed bullish trading on the counters. Kalyani Investment Company, Garware Technical Fibers, Shriram Pistons, Medicare for Rainbow Kids, Navin Fluorine, 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 issues a bullish signal, indicating that the price of the security may undergo 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, Solex Energy, LTIMindtree, eClerx Servicesand 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:
Bajaj Auto (Rs 3,821 crore), RIL (Rs 2,113 crore), Mphasis (Rs 1,633 crore), Infosys (Rs 1,968 crore), BSE (Rs 1,584 crore), Angel One (Rs 1,534 crore) and SBI (Rs 1,510 crore). ), among others, were among the most active stocks on the 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: 10.1 crore), YES Bank (shares traded: 4.9 crore), Nalco (shares traded: 4.9 crore), Suzlon Energy (shares traded: 3.2 Crore), Tata Steel (Shares Traded: 2.8 Crore), Zomato (Shares Traded: 2.5 Crore) and Central Bank (Shares Traded: 2.4 Crore), among others, were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Tech Mahindra, CAMS, Firstsource, Gujarat Fluorochemicals, Elecon Engineering, GE T&D India and Oberoi Realty among others witnessed strong buying interest from market participants as they scaled to new 52-week highs, indicating bullish sentiment.
Stocks experiencing selling pressure:
Equitas Small Finance Bank shares hit their 52-week lows, indicating bearish sentiment on the counter.
The sentiment meter indicates:
Overall, market breadth favored the bears as 2,690 stocks ended in the green, while 1,272 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)
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