The Nifty 50 index fell 0.49% to 24,918, while the S&P BSE Sensex lost 0.49% to 81,523.
Here’s how analysts read the market pulse:
“On the daily chart, the Nifty is taking support from a rising trend line and has formed a bearish candle. The Nifty has strong support near the 24,800 level. If it breaks this level, it could potentially correct down to 24,600 and 24,400 in the short term. On the flip side, 25,200 acts as a resistance level, and the price may remain sideways within a wide range of 24,800 to 25,200,” said Mandar Bhojane of Choice Broking.
Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates, said, “Technically, on the daily scale, Nifty failed to sustain above the trend line resistance and formed a red candle, indicating weakness. As long as the index remains below the trend line resistance, which is around the 25,150 level, caution is advised on the upside. On the downside, 34-DEMA support is positioned around 24,750, which will serve as significant support for Nifty in the short term.”
That said, here’s a look at what some key indicators are suggesting for Thursday’s action:
US market:
Wall Street stocks fell sharply on Wednesday as U.S. benchmark Treasury yields hit their lowest in over a year. This drop came after a key inflation report indicated uneven price growth, likely leading to a 25 basis point rate cut by the Federal Reserve next week.
All three major U.S. stock indexes moved lower early in the trading session, while Brent crude prices rebounded from a 3.5-year low.The Labor Department’s Consumer Price Index (CPI) showed annual inflation cooling to 2.5%, a decrease of 40 basis points. However, the core CPI, excluding food and energy, rose 0.3% monthly and 3.2% annually.Market focus also shifted to Tuesday night’s U.S. Presidential debate, where Vice President Kamala Harris and former President Donald Trump clashed on various issues, including the economy and immigration.
European stocks:
European shares closed flat on Wednesday, with gains in technology stocks counterbalanced by declines in real estate shares. Investors turned their attention to the European Central Bank’s upcoming rate decision on Thursday. The pan-European STOXX 600 index saw little change for the day.
In the UK, the benchmark FTSE 100 fell by 0.2%. July’s GDP data indicated no month-on-month change in the UK’s economic output.
Tech View: Bearish candle
The Nifty formed a bearish candle on the daily chart as the Indian markets ended weaker.
Recent swing low 24,753 is expected to offer short term support to the Nifty. On the higher side, 25,200 becomes strong resistance in Nifty and unless that is taken out, traders should remain cautious, said Devarsh Vakil of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,000 and 25,100 strike prices, while on the put side, the highest OI was at 24,800 strike price followed by 24,900.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of TVS Holdings, PI Industries, Hawkins Cookers, RBM Infracon, Himadri Speciality Chemical, Tata Communications, Dodla Dairy, Havells India, Greenpanel Industries, and GM Breweries 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 signaling weakness ahead:
The MACD showed bearish signs on the counters of Craftsman Automation, Swaraj Engines, Shriram Finance, SBI Life Insurance, SBI Life, Ceat, Muthoot Finance, Vijaya Diagnostic Centre, and Motilal Oswal Financial Services among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms:
Tata Motors (Rs 3,555 crore), Zomato (Rs 3,362 crore), Prism Johnson (Rs 2,236 crore), HDFC Bank (Rs 1,829 crore), SBI (Rs 1,556 crore), Paytm (Rs 1,499 crore), and ICICI Bank (Rs 1,480 crore) among others 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:
Vodafone Idea (Shares traded: 35.8 crore), YES Bank (Shares traded: 24 crore), Zomato (Shares traded: 12.1 crore), Suzlon Energy (Shares traded: 12.1 crore), Prism Johnson (Shares traded: 9.6 crore), ONGC (Shares traded: 4.4 crore), and Piramal Pharma (Shares traded: 3.6 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Prism Johnson, Apar Industries, PNB Housing, Century Textiles, Bajaj Auto, Natco Pharma, and Jyothy Labs among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
No major shares hit their 52-week low on Wednesday.
Sentiment meter favours bears:
Overall, market breadth favoured bears as 1,603 stocks ended in the red, while 2,368 names settled in the green.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
