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

NEW DELHI: Despite weak global cues, the benchmark indices ended Thursday’s session higher, with Nifty ending above 17,500 points. Broader markets, however, languished during the trade. Bank Nifty tumbled by close to 0.7%.

Here's how analysts read the market pulse:

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said: “Bulls continued to dominate Dalal Street ahead of the festive season. Nifty opened negative but value buying at lower levels helped the index to recover and close with gains of 52 points at 17,564. Nifty has found support above 17,400 zones for the 3rd consecutive day indicating strong base formation.”

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, “Zooming into the 15-minute chart, we see that the Nifty opened with a down gap, but buying soon emerged from the lows and pushed the index higher. The Nifty thus remains in a short-term uptrend as it has moved above the previous swing highs of 17,429 and made higher bottoms over the last few weeks.”

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

US stocks mixed amid more earnings
US stocks were mixed in choppy trading on Thursday as investors weighed political chaos in the UK and the outlook for corporate earnings.

The Dow Jones Industrial Average added 82 points, or 0.3%. The Nasdaq Composite gained 0.3%, while the S&P 500 was down 0.1%.

European shares rise after Truss resigns
European shares rose on Thursday after Liz Truss said she was resigning as the United Kingdom's prime minister, brought down by her economic programme that wrecked havoc on markets.

The region-wide STOXX 600 closed 0.3% up after flirting between gains and losses right after the announcement in London.

Tech View: Bullish candle
On the daily chart, Nifty formed a bullish candle. Analysts said Nifty remains in a short-term uptrend as it has moved above the previous swing highs of 17,429 and made higher bottoms over the last few weeks. “Now, it has to be above 17,500 zones for an up move towards 17,777 and 17,850 zones, whereas supports are placed at 17,442 and 17,350 zones,” said Chandan Taparia of Motilal Oswal.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trend in the counters of South Indian Bank, GAIL, Indiabulls Real Estate, NCC and Indus Towers, 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 signalling weakness ahead
The MACD showed bearish signs on the counters of Jaiprakash Associates, RVNL, Ircon, Cochin Shipyard, Praj Industries and Tata Chemicals, among others.

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

Most active stocks in value terms
IndusInd Bank (Rs 1313 crore), Canara Bank (Rs 1185 crore), RIL(Rs 1007 crore), Axis Bank (Rs 972 crore), and Bajaj Finance (Rs 755 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
Suzlon Energy (Shares traded: 59.73 crore), PNB (Shares traded: 12.10 crore), JP Power (Shares traded: 8.12 crore), Vodafone Idea (Shares traded: 6.83 crore) and Zomato (Shares traded: 5.75 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Deepak Fertilizers, EID Parry, Rainbow Children, BLS International and Orient Refractories, among others, witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of Piramal Pharma, KNR Construction, Policy Bazaar, Sanofi India and Alembic Pharma, among others 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 1,866 stocks ended in the red, while 1,567 names ended in the green.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)