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

NEW DELHI: Ahead of the US Fed policy outcome, the Indian stock market remained weak and fell for the third consecutive day. Nifty ended the day with a loss of 42 points while the Sensex lost 153 points to end at 52,693.57.

Here's how analysts read the market pulse:

"The daily RSI is in a bearish crossover. The trend is likely to remain sideward in the short term. On the lower end, support is visible at 15,650. On the higher end, resistance is placed at 15,900/16,000,” said Rupak De, Senior Technical Analyst at LKP Securities.

Ajit Mishra, VP - Research, Religare Broking, said traders must limit leveraged positions ahead of the US Fed meet outcome tomorrow night.

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

Wall Street gives up earlier bounce
Wall Street is wobbling Tuesday in its first trading after tumbling into a bear market on worries that high inflation will push central banks to clamp the brakes too hard on the economy.

The S&P 500 was 0.2% lower in midday trading as investors brace for the Federal Reserve's announcement on Wednesday about what it will do with interest rates. It was an unsteady move, though, and the index swung between an earlier loss of 0.5% and gain of 0.8% after a couple big companies flexed financial strength with stronger profits and payouts to shareholders.

The Dow Jones Industrial Average was down 109 points, or 0.4%, at 30,407, as of 11:09 a.m. Eastern time, and the Nasdaq composite was 0.1% lower after swinging between a gain of 0.9% and a loss of 0.4%.

European stocks hover near March 2021 low
European stocks traded near their lowest level since March 2021 as investors remained worried about aggressive central-bank policy tightening amid stubbornly high inflation.

The Stoxx Europe 600 Index was down 0.9% as of 2:44 p.m. in London, its sixth straight day of losses. Retail and construction sectors led declines, while banks and energy outperformed.

Tech View: Support at 15,600-700
Nifty50 formed an 'Inverted Hammer' candle on the daily chart, which at many times is formed around bottoms, as traders remain sceptical about the initial pullback attempts, said analysts. Analysts said the level of 15,600-700 remains strong support for the index going ahead. They see resistance at the 16,850 level.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Alkyl Amines, Dalmia Bharat, Bharti Airtel, Siemens, and Avanti Feeds.

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 Birlasoft, ITI Ltd, Adani Ports & SEZ, NOCIL, Essel Propack and Century Textiles. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks in value terms
Reliance Industries (Rs 1,791 crore), Bajaj Finance (Rs 1,014 crore), ICICI Bank (Rs 918 crore), Infosys (Rs 875 crore), TCS (Rs 840 crore), and Tata Motors (Rs 795.86 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
Tata Motors (Shares traded: 1.9 crore), NTPC (Shares traded: 1.7 crore), ICICI Bank (Shares traded: 1.3 crore), ONGC (Shares traded: 1.2 crore), Power Grid (Shares traded: 1.2 crore) and SBI (Shares traded: 1.1 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Varun Beverages witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Hindalco, Tech Mahindra, BPCL, Asian Paints, Bajaj Finserv, Wipro and Bajaj Finance witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bears
Overall, market breadth favoured losers as 1,435 stocks ended in the green, while 1,874 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)