Here’s a look at what some of the key indicators are suggesting for Thursday's action.
PTIThe index formed a 'Spinning Top' candle on the daily chart, suggesting indecisiveness among traders at higher levels.
NEW DELHI: Nifty erased most of the previous session’s gains, but managed to close above the 11,200 mark on Wednesday.
Chandan Taparia of Motilal Oswal Financial Services said the index has got stuck in the 11,050-11,350 range and requires a decisive range breakout with followup action to commence the next leg of rally.
"Now Nifty has to hold above 11,150 level to extend its move towards 11,350 and then 11,500, while on the downside key support exists at 11,050 level," he said.
Deepak Jasani of HDFC Securities said Indian markets continue to give mixed signals with alternate days of gain and loss. “The indecision period could soon end with a lot of macro data (including US Fed decision) expected soon,” he said.
Ajit Mishra of Religare Broking said the market will react to the outcome of the Fed meet in the early trade on Thursday i.e. July 30.
“The scheduled derivatives expiry combined with earnings would keep market participants on their toes. Indications are in the favour of further profit taking in the benchmark ahead. So we advise booking profits in existing longs,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Thursday's action: US stocks add to gains after Fed statement The S&P 500 added slightly to its gains on Wednesday in choppy trading after the U.S. Federal Reserve said it kept interest rates unchanged and repeated a pledge to use its "full range of tools" to support the economy for as long as it takes to recover from fallout of the coronavirus outbreak. The Dow Jones Industrial Average rose 96.31 points, or 0.37%, to 26,475.59, the S&P 500 gained 29.74 points, or 0.92%, to 3,248.18 and the Nasdaq Composite added 108.03 points, or 1.04%, to 10,510.12.
European shares flat as Fed outcome looms European stocks were largely flat on Wednesday as investors parsed through a deluge of earnings reports from major lenders like Deutsche Bank and Barclays, while waiting to hear from the U.S. Federal Reserve. The pan-European STOXX 600 edged up 0.1% as a 1.3% jump in retailers helped counter the declines in automakers and chemical companies.
Nifty50 fell nearly 100 points on Wednesday despite decisively breaking above a crucial resistance level in the previous session. The index formed a 'Spinning Top' candle on the daily chart, suggesting indecisiveness among traders at higher levels. Analysts says support for the index stands at 11,050 level, while they expect the NSE barometer to face resistance in the 11,050-11,380 range.
F&O: Options show Nifty range at 11,100-11,350 India VIX moved up 2 per cent to 24.11 level. Overall, lower volatility is supporting the bullish scenario, and every intraday decline could be bought as long as key supports are intact. Options data suggested an immediate trading range between 11,100 and 11,350 zones
Stocks showing bullish bias Momentum indicator Moving Average Convergence Divergence (MACD) on Wednesday showed bullish trade setup on the counters of NMDC, Tata Coffee, Cipla, Shriram Transport Finance, Tata Chemicals, PTC India Financial, ITI, Indraprastha, Zen Technologies, Prestige Estates, Jubilant Life Sciences, Shree Digvijay, Strides Pharma Sciences, Cummins India, Shalby, Advanced Enzyme Tech, Vimta Labs, Prajay Engineers, Eris Lifesciences, Kirloskar Oil Engine, Alkem Laboratories, Sanofi India, Seamec and Poddar Housing, among others.
Stocks signalling weakness ahead The MACD showed bearish signs on the counters of NOCIL, Crompton Greaves, Nestle India, HSIL, Balaji Telefilms, Can Fin Homes, Balmer Lawrie, Tube Investments, Aster DM Healthcare, SMS Pharmaceuticals, Oberoi Realty, DCM Shriram, Dr. Lal Pathlabs, Gravita India, Centum Electronics, Amrutanjan Health, P&G Hygiene & Health, Fine Organic Industries, AIA Engineering and Sastasundar Ventures. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms RIL (Rs 7121.63 crore) , Bajaj Finance (Rs 2651.79 crore) , Dr. Reddy's Labs (Rs 2095.85 crore) , IndusInd Bank (Rs 2039.93 crore) , HDFC Bank (Rs 1800.77 crore) , ICICI Bank (Rs 1776.37 crore) , SBI (Rs 1418.15 crore) , HDFC (Rs 1401.17 crore) , TCS (Rs 1395.67 crore) and Maruti Suzuki (Rs 1274.62 crore) were among the most active stocks on Dalal Street on Wednesday 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: 59.57 crore) , Vodafone Idea (shares traded: 35.93 crore) , BHEL (shares traded: 9.90 crore) , SBI (shares traded: 7.37 crore) , IDFC First Bank (shares traded: 6.36 crore) , ICICI Bank (shares traded: 5.02 crore) , Tata Motors (shares traded: 4.45 crore) , SAIL (shares traded: 3.88 crore) , RBL Bank (shares traded: 3.75 crore) and IndusInd Bank (shares traded: 3.70 crore) were among the most traded stocks in the session.
Stocks seeing buying interest Dr Reddy's Labs, Jubilant Life, Infibeam Avenues, Mindtree and Laurus Labs witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Wednesday signalling bullish sentiment.
Stocks seeing selling pressure Aarti Surfactants, B.C. Power Controls, Borosil, Khandwala Securities, Standard Industries and Mittal Life Style witnessed strong selling pressure in Wednesday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls Overall, market breadth remained in favour of bulls. As many as 263 stocks on the BSE 500 index settled the day in green, while 233 settled the day in red.
Podcast: Was Nifty fall just a temporary blip? >>>
Equity benchmark Sensex retreated over 1 per cent as profit booking emerged in index heavyweights Reliance Industries, HDFC Bank and TCS. On the other hand, IndusInd Bank, Tata Steel and ITC logged some gains to cap the downside. Overall, Sensex closed 422 points lower at 38,071 while Nifty lost 98 points to 11,203. Was this a temporary blip or the beginning of a bigger fall? Mayuresh Joshi of William O'Neil India examines.
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