Here’s how analysts read the market pulse:
Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities, said: “Zooming into the 15 minute chart, we see that though Nifty witnessed selling pressure from the highs, the index recovered from the lows and managed to close with healthy gains. The short term trend therefore remains up as the Nifty moved above the previous swing high of 17,429 and made higher bottoms over the last few weeks.
Rupak De, Senior Technical Analyst at
, said: “Nifty remained volatile during the day before closing on a flat note. On the daily chart, the index has been consolidating for the last few days. However, it has sustained above the crucial moving average on the daily timeframe confirming the uptrend. On the higher end, the index may move towards 17,950. On the lower end, support is visible at 17,650/17,550.”
That said, here’s a look at what some key indicators are suggesting for Friday’s action:
Stocks gain ground on Wall Street
Stocks mostly rose in morning trading on Wall Street, but major indexes remained unsettled as more big companies report earnings.
The S&P 500 fell 0.3% as of 10:50 a.m. Eastern time. The tech-heavy Nasdaq fell 0.5%. Facebook’s parent company Meta Platforms plummeted 22.1% after reporting a second straight quarter of revenue decline amid falling advertising sales and stiff competition from TikTok. The Dow Jones Industrial Average rose 452 points, or 1.4%, to 32,299.
European markets close higher
The pan-European STOXX 600 index ended the day a marginal 0.08% higher, having earlier touched its highest level since September 20 in a see-saw session as traders digested the latest 75 basis point rate hike by the European Central Bank (ECB). European stocks fell after the ECB policy announcement but quickly regained ground and ended the day higher having traded as much as 0.9% lower in the build-up during morning trading.
Tech View: Inside bar
On the daily chart, the Nifty formed an Inside Bar. The hourly chart shows that the index is forming a distribution below the key Fibonacci retracement at 17,800 for the last couple of sessions, analysts said. After consolidating around the 17,800 zone for the last three sessions, any upside could lead the index towards the 18000-18200 zone.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trend in the counters of SJVN,
, DCB Bank, Ircon and DCW, among others.
The MACD is known for signaling 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 PCBL,
, Vardhaman, Easy Trip and , among others.
A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.
Most active stocks in value terms
(Rs 1489 crore), RIL (Rs 1414 crore), (Rs 1161 crore), (Rs 1150 crore), and Axis Bank (Rs 1091 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 highest trading turnovers in the day.
Most active stocks in volume terms
YES Bank (Shares traded: 11.13 crore), PNB (Shares traded: 9.63 crore),
(Shares traded: 8.41 crore), RBL Bank (Shares traded: 7.64 crore) and (Shares traded: 7.43 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of SJVN,
, , , and Concor, among others, witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure
Shares of NMDC,
, Nykaa, , Delhivery and Mphasis, among others, witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bulls
Market breadth favoured losers as 1,787 stocks ended in the green, while 1,641 names ended with cuts.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)