Here’s how analysts read the market pulse:
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said that a sustainable move above 17,900-18,000 levels in the short term is expected to open the next upside target of 18,500-18,600 levels in the coming week. Crucial supports to be watched at 17,760 levels.
Ajit Mishra, VP – Research,
Broking, said we are in the fifth successive week of advance, and rotational buying across sectors is helping the index maintain the prevailing trend.
That said, here’s a look at what some key indicators are suggesting for Friday’s action:
Wall Street slips
Wall Street’s main indexes fell on Thursday after latest data suggested labor market conditions remain tight, while investors assessed minutes from the Federal Reserve’s July meeting that indicated a less aggressive monetary policy tightening path.
Eight of the 11 major S&P 500 sectors declined in early trading, with consumer discretionary and communication services stocks leading losses.
At 10:05 a.m. ET, the Dow Jones Industrial Average was down 97.62 points, or 0.29%, at 33,882.70, the S&P 500 was down 8.11 points, or 0.19%, at 4,265.93, and the Nasdaq Composite was down 46.37 points, or 0.36%, at 12,891.75.
European stocks firm despite Fed hike fears
European stock markets mostly pushed higher Thursday despite the Federal Reserve indicating its intention to maintain a policy of aggressive US interest-rate hikes to bring down the highest inflation in decades. The pan-European Stoxx 600 was up 0.3 per cent by late afternoon, having reversed earlier losses.
Tech View: Bullish candle
Nifty formed a small bullish candle on the daily chart. The ‘RSI Smoothed’ oscillator has given a negative divergence on the lower time frame chart in the overbought zone, which is the first sign of caution, said Ruchit Jain, Lead Research, 5paisa.com.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of
, India Cement, BHEL, Clean Science and .
The MACD is known for signalling trend reversals 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 may see an upward movement and vice versa.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of KIMS, PFC, EIH, Railtel, Ceat and
. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
(Rs 1,156 crore), RIL (Rs 908 crore), (Rs 758 crore), Infosys (Rs 734 crore), (Rs 726 crore), and Kotak Bank (Rs 688 crore) were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify the counters with the highest trading turnovers in the day.
Most active stocks in volume terms
(shares traded: 4.9 crore), ONGC (shares traded: 4.3 crore), ICICI Bank (shares traded: 1.3 crore), (shares traded: 1.2 crore), Bharti Airtel (shares traded: 1 crore) and ITC (shares traded: 9.9 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of Campus Activewear,
, , , SBI Life, HAL and witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Shares of Black Box Limited,
Limited and Limited witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.
Sentiment meter favours bulls
Overall, market breadth favoured winners as 1,883 stocks ended in the green, while 1,534 names settled with cuts.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)