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

    Synopsis

    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade Morepen Labs, Cipla, Aurobindo Pharma and Thyrocare

    Market outlook for ThursdayANI
    The MACD is known for signaling trend reversals in traded securities or indices.
    NEW DELHI: Shares swung to losses on Wednesday as the market registered its slowest trading day on record, ahead of the release of the Reserve Bank of India's (RBI) latest policy meeting minutes and key US macroeconomic data.

    The Nifty 50 index closed 1.01% lower at 18,199.10 and the S&P BSE Sensex fell 1.03% to 61,067.24. Both benchmarks had risen nearly 0.5% during the session. Sectorally all indices, barring Nifty IT and Nifty Pharma, ended in the red.

    Here's how analysts read the market pulse:

    “Domestic equities came under pressure after worsening of Covid situation in China and sudden spurt of cases being witnessed in the US, Korea, Brazil, and Japan. Nifty opened positive but soon witnessed selling after Centre issues advisory to states to step up measures to tackle the new Covid wave. The index closed near days’ low with a loss of 186 points (-1%) at 18,199 levels. India VIX jumped sharply by 13% to above 15 zones. As a result, Covid sensitive sectors like pharma and diagnostic were in limelight and are expected to remain in momentum,” Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said.

    “Bears remain at the helm, as the benchmark index tumbled by 1% at the end of the trading session. On the daily chart, the Nifty slipped after a brief consolidation, suggesting a rise in pessimism. On the lower end, the index may extend the correction towards 18,070; below that, the index may fall towards 17,800. On the higher end, 18,350 may act as critical support, and the market may remain sell-on-rise till Nifty remains below 18,350,” Rupak De, Senior Technical Analyst at LKP Securities, said.

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

    US market
    Wall Street's main stock indexes rose on Wednesday after Nike reported upbeat results, while investors drew comfort from data that showed improving consumer sentiment and a fall in inflation expectations.

    US consumer confidence rebounded in December as inflation retreated and the labour market remained strong, while 12-month inflation expectations fell to 6.7%, the lowest since September last year.

    Nike jumped 13.7% after reporting its best quarterly revenue growth in more than a decade, barring one quarter, and beat profit expectations on strong holiday demand from North American shoppers.

    Consumer discretionary stocks led gains among the major S&P 500 sectoral indexes, while financial shares also gained.

    The benchmark S&P 500 and Dow Jones Industrial Average were on track for their first quarterly gains this year, rising 7.2% and 15.4%, respectively, on the back of upbeat earnings, easing price pressures and hopes that the Federal Reserve will slow its rate hikes.

    At 10:08 am ET, the Dow Jones Industrial Average was up 371.79 points, or 1.13%, at 33,221.53, the S&P 500 was up 39.44 points, or 1.03%, at 3,861.06, and the Nasdaq Composite was up 103.79 points, or 0.98%, at 10,650.91.

    European shares
    European shares rose on Wednesday, lifted by healthcare and consumer discretionary firms, as investors headed into the holiday season on an upbeat note. The region-wide STOXX 600 index was up 0.4% at 0816 GMT.

    Tech View: Long negative candle
    A long negative candle was formed on the daily chart, which signalled an attempt of downside breakout of the immediate support of 18,200 levels. The negative chart pattern like lower tops and bottoms continued and Tuesday's swing high of 18,473 could now be considered as a new lower top of the sequence. Hence one may expect further weakness in the coming session.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade Morepen Labs, Cipla, Aurobindo Pharma and Thyrocare, 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 JaiPrakash Power, Bank of Maharashra, IDFC First Bank and IFCI, 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 1,436 crore), RIL (Rs 1,024 crore), ICICI Bank (Rs 1,020 crore ) and Infosys (Rs 943 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
    Suzlon Energy (Shares traded: 39.54 crore), Yes Bank (Shares traded: 36.99 crore), IOB (Shares traded: 24.03 crore), and UCO Bank (Shares traded: 19.43 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of Abbott India, Esab India, GE Shipping and Axis Bank witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

    Stocks seeing selling pressure
    Shares of Nykaa, Keystone Realtors, Piramal Pharma and Polyplex hit their 52-week lows on Tuesday, which signals bearish sentiment on the counter.

    Sentiment meter favours bears
    Overall, market breadth favoured bears as 731 stocks ended in the green, while 2,841 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)




    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

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    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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