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

Amid gains in Asian and European equity exchanges, Indian benchmark indices regained their momentum after a continued sell-off for the past eight days. The Nifty ended higher sharply, at 17,450 points. Broader markets, too, witnessed a run amid the cheer, with Nifty Midcap100 ending over 1% higher. All sectors ended in the green, with Nifty Metals notching gains of around 4%, followed by Nifty PSU Bank with 3% rise.

Here's how analysts read the market pulse:

“Nifty witnessed some buying momentum from lower levels and managed to surpass the hurdle of 17,400 where a significant amount of call writing was visible. The index’s broader trend remains bearish but since we are in an oversold territory, a minor pullback can be witnessed if the index sustains above 17,400. The index, if it fails to surpass the level of 17,500, will again witness selling pressure,” said Rupak De, Senior Technical Analyst at LKP Securities, said.

“The Indian market was oversold and needed encouraging domestic triggers to show signs of revival. The manufacturing PMI reported was better than predicted at 55.3, even though India's Q3 FY23 GDP statistics came in slightly below expectations at 4.4%. Solid global markets, bolstered by strong Chinese manufacturing data, also ignited optimism in the domestic market,”said Vinod Nair, Head of Research at Geojit Financial Services.

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

US market
Wall Street's main indices fell on Wednesday as Treasury yields surged after economic data and comments from policymakers prompted investors to ramp-up expectations of tighter US monetary policy for a prolonged period.

The yield on two-year Treasury notes, which closely tracks short-term interest rate expectations, rose to 4.9%, its highest level since 2007.

The 10-year yield, the benchmark for global borrowing costs, topped 4%. At 10:23 a.m. ET, the Dow Jones Industrial Average was down 57.09 points, or 0.17%, at 32,599.61, the S&P 500 was down 17.47 points, or 0.44%, at 3,952.68, and the Nasdaq Composite was down 58.62 points, or 0.51%, at 11,396.93.

European shares
Miners and luxury firms lifted European shares on Wednesday after strong data from China brought relief to investors fearful of an economic slowdown, while declines in shares of eurozone's biggest bank BNP Paribas kept the gains in check.

The continent-wide STOXX 600 rose 0.2% by 0900 GMT, kicking off the month on a steady ground after a solid start to the year.

European shares have had a robust start to the year as relaxation of China's zero-COVID protocols breathed life into hopes of demand recovery. The STOXX 600 notched its fourth positive month in five in February.

Tech View: Long bull candle
A long bull candle was formed on the daily chart, which indicates short- term upside reversal in the market. Hence, the low of Tuesday at 17,255 could now be considered as a short-term bottom reversal for the market. However, the medium-term down trend in Nifty remains intact and present upside bounce could be considered as a pullback rally of a bearish trend, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of PNB, BOB, Bhel, UCO Bank and Canara Bank, 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 IRB Infra, Aurobindo Pharma, Apollo Hospitals, Siemens, Windlas Biotech and Blue Star, 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
Adani Enterprises (Rs 3,040 crore), RIL (Rs 1,246 crore), HDFC Bank (Rs 1,132 crore), Adani Ports (Rs 1,130 crore) and Axis Bank (Rs 1,065 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: 28.22 crore), Vodafone Idea (Shares traded: 10.13 crore), Tata Steel (Shares traded: 7.61 crore), Suzlon Energy (Shares traded: 5.5 crore) and PNB (Shares traded: 5.47 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Triveni Turbine, Sonata Software, P&G Health, Equitas SFB and Ion Exchange, 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 Angel Broking, Adani Transmission, Adani Gas, DCM Shriram and Piramal Pharma hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured bulls as 2,411 stocks ended in the green, while 1,097 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)