HomeMarketsAhead of Market: 10 things that will decide D-St action on Thursday

Ahead of Market: 10 things that will decide D-St action on Thursday

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NEW DELHI: Tracking weakness in global markets, the benchmark indices closed lower on Wednesday as Russia’s escalation of the Ukraine conflict further soured sentiment of investors already bracing for a big interest rate hike by the US Fed. Nifty settled just above 17,700 points, while broader markets and Nifty Bank underperformed.

Here’s how analysts read the market pulse:

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said, “The benchmark indices witnessed range-bound activity. Among sectors, the metal index corrected sharply, shed over 2 per cent, whereas the FMCG index outperformed and rallied over 1 per cent.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said: “after opening with a negative note, the market attempted to move up in the early part of the session. It failed to sustain the highs and showed declines in the mid to later part of the session. A small negative candle was formed on the daily chart with minor upper and lower shadows. Technically, this pattern indicates a consolidation movement in the market.

The market is stuck within a broader high low range of 18,100-17,500 levels, and the movement within the said range is expected to stay there for next few sessions. Any decisive move beyond this range could bring acceleration in the momentum on either side.

That said, here’s a look at what some key indicators are suggesting for Thursday’s action:

US stocks gain ground ahead of Fed decision

Wall Street stocks climbed early Wednesday ahead of a key Federal Reserve decision that will be scrutinized for nuances in the central bank’s inflation-fighting posture. About 25 minutes into trading, the Dow Jones Industrial Average was up 0.5 percent at 30,870.99.

The broad-based S&P 500 also advanced 0.5 percent to 3,876.70, while the tech-rich Nasdaq Composite Index gained 0.3 percent to 11,458.81.

European stocks close higher

European stocks pared early losses and ended higher ahead of the Fed’s rate hike and an accompanying statement that investors hope will provide a clue as to how high rates will go next year.

The pan-regional STOXX 600 index provisionally ended the day up 0.9%

Tech View: Small-bodied candle
The index made a small-bodied candle on the daily charts ahead of the US Federal Reserve outcome. Indian markets will react on Thursday morning.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Central Bank, Tourism Finance, Sterling and Wilson, Marico and Apollo Hospitals, 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 Zomato, Bank of Baroda, NHPC, Future Consumer, NTPC, and Bandhan Bank.

A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks in value terms
Ambuja Cements (Rs 2,696 crore), Adani Enterprises (Rs 2245 crore), Adani Wilmar (Rs 1515 crore), Adani Ports (Rs 1240 crore) and Infosys (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 the highest trading turnovers in the day.

Most active stocks in volume terms
YES Bank (Shares traded: 17.15 crore), Vodafone Idea (Shares traded: 10.15 crore), Shree Renuka Sugar (Shares traded: 9.44 crore), Central Bank (Shares traded: 6.9 crore) and Zomato (Shares traded: 5.91 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Orient Refractories, Ruchi Soya, Welspun Corp, CG Power and Ratnamani Metal witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of Sona BLW Precision, Gland Pharma, Indian Energy Exchange and Sanofi India were among those that witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bears
Overall, market breadth favoured losers as 2,225 stocks ended in the red, while 1,241 names ended with gains.

(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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