The NSE Nifty 50 index settled 0.32% higher at 21,911, while the S&P BSE Sensex gained 0.32% to 72,050. Both the benchmarks struggled for direction earlier in the day, before consolidating gains in the final two hours.
Here’s how analysts read the market pulse:
“On the daily chart, we can observe that after the sharp runup in the previous trading session Nifty is holding on to gains and also minor dips are being bought into, suggesting buying interest. On the upside, the immediate hurdle is placed at the 22,100 – 22,130 zone while the support zone has shifted higher towards 21,770 – 21,750,” said Jatin Gedia – Technical Research Analyst at Sharekhan.
Rupak De, LKP Securities, said, “Nifty exhibited volatility throughout the day but eventually closed above the resistance level of 21,850. According to the daily chart, Nifty has experienced a consolidation breakout, indicating a positive shift in sentiment. Additionally, the index has closed above the 20-DMA for the third consecutive session, and the RSI shows a bullish crossover. In the short term, there is a possibility of the index moving towards 22,200. On the downside, support is situated at 21,750.”
That said, here’s a look at what some key indicators are suggesting for Friday’s action:
US market
The S&P 500 and the Dow gained on Thursday as investors cheered a higher-than-expected fall in retail sales data and looked ahead for clues on when the U.S. Federal Reserve would deliver its first interest-rate cut this year.A Commerce Department report showed U.S. retail sales dropped 0.8% in January, weighed by declines in receipts at auto dealerships and gasoline service stations.
At 9:52 a.m. ET, the Dow Jones Industrial Average was up 184.34 points, or 0.48%, at 38,608.61, the S&P 500 was up 14.75 points, or 0.29%, at 5,015.37, and the Nasdaq Composite was up 7.69 points, or 0.05%, at 15,866.83.
Weighing on the tech-heavy Nasdaq, Alphabet dropped 2.8% after investment firm Third Point dissolved its stake in the megacap.
European shares
European shares rose on Thursday, boosted by gains in French stocks and UK’s soft GDP data, while comments by European Central Bank President Christine Lagarde on the disinflation process in the euro zone lifted sentiment.
French shares outperformed regional peers, with France’s benchmark index CAC 40 hitting a record high, on robust earnings from Renault and Pernod Ricard.
The surge also pushed the automobiles and parts index to a near two-year high, rising 1.7%.
The pan-European STOXX 600 climbed 0.6% to trade over a two-year high, with Goldman Sachs raising its 2024 target for the benchmark index to 510 points, representing about 5% upside from current levels.
UK’s FTSE 100 also gained 0.6% as Britain’s economy entered a recession in the second half of 2023, fuelling bets that the Bank of England would ease its monetary policy.
Tech View: Doji-type candlestick
Nifty on Thursday ended 71 points higher above the 21,900 level to form a Doji-type candlestick on the daily chart. Both price and momentum indicators suggest continuation of the up move.
Nifty is currently placed at the edge of moving above the minor down-trend line resistance around 21,900-21,950 levels. A decisive break above this hurdle could open the doors for new all-time highs around 22,150 levels. Immediate support is at 21,800, said Nagaraj Shetti of HDFC Securities.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Aegis Logistics, Praj Industries, Granules India, Bajaj Auto, Oberoi Realty, and Asahi India Glass among others.
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 M&M, Sonata Software, Gujarat Alkalie, Welspun India, Route Mobile, and Triveni Engineering & Industries 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
HDFC Bank (Rs 2,916 crore), SBI (Rs 2,559 crore), M&M (Rs 1,728 crore), BPCL (Rs 1,652 crore), RIL (Rs 1,474 crore), Axis Bank (Rs 1,270 crore), and ICICI Bank (Rs 1,020 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
SBI (Shares traded: 3.3 crore), ONGC (Shares traded: 3.2 crore), Tata Steel (Shares traded: 3.1 crore), BPCL (Shares traded: 2.5 crore), Power Grid (Shares traded: 2.5 crore), NTPC (Shares traded: 2.1 crore), and HDFC Bank (Shares traded: 2 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of M&M, BPCL, ONGC, SBI, Coal India, Maruti Suzuki, and Bajaj Auto among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Shares of Rajesh Exports, Paytm, Polyplex Corporation, and HUL hit their 52-week lows, signalling bearish sentiment on the counters.
Sentiment meter favours bulls
Overall, market breadth favoured bulls as 2,329 stocks ended in the green, while 1,536 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)
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