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    Ahead of Market: 12 things that will decide stock action today

    Synopsis

    Strong buying seen in energy, power, realty and metal counters helped erase some of the losses, helping the Nifty close in the green.

    Trade setupGetty Images
    Analysts say the index may consolidate a bit from here on, but the broader trend still remains positive.
    NEW DELHI: US stocks ended mixed last night while Asian shares were a touch below a recent three-month top on Thursday morning as investors weighed inflation concerns ahead of key US economic data.

    At 7:10 hours (IST), Nifty futures on the Singapore Exchange traded 85 points higher signalling a likely gap-up start for Dalal Street.

    Let's have a look at the key factors influencing market mood this morning.

    Global equities edge higher on hopes of US jobs data
    Global equities markets firmed on Wednesday ahead of key U.S. economic data due later in the week as investors weighed inflation concerns and a fresh surge in so-called "meme stocks." Wall Street's main indexes ended the session mixed after erasing earlier gains near midday trading led by a jump in shares of AMC Entertainment Holdings, which nearly doubled in price on Wednesday. The Dow Jones Industrial Average rose 25.07 points, or 0.07%, to 34,600.38, the S&P 500 gained 6.08 points, or 0.14%, to 4,208.12 and the Nasdaq Composite added 19.85 points, or 0.14%, to 13,756.33.

    Asia shares off 3-month highs, caution ahead of US payrolls
    Asian shares were a touch below a recent three-month top on Thursday with China a tad weaker as investors weighed inflation concerns ahead of key U.S. economic data while oil prices rose to near 1-1/2 year highs. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3% to 711 points. It went as high as 712.57 on Wednesday, a level not seen since early March.

    European shares near record highs
    European stocks stayed near record levels, helped by energy and consumer stocks. The pan-European STOXX 600 index traded 0.3 per cent higher, holding just below its all-time high hit in the previous session. Data showing a strong expansion in US and European factory activity in May lifted world shares to fresh highs on Tuesday, with investors awaiting US jobs data on Friday for confirmation of a solid recovery in the world's largest economy. Oil and gas stocks rose 0.9 per cent to lead sectoral gains in Europe as crude prices extended gains after OPEC and its allies stuck to their plan to cautiously bring back supply to the markets in June and July.

    F&O: Falling VIX can gain further momentum
    Volatility index India VIX fell 1.04 per cent from 17.38 to 17.21. The gauge is near its lowest levels in the last 65 weeks, since February 2020, and a falling VIX could extend the bullish market momentum towards a new high.

    Tech View: Nifty50's broader market trend stays positive
    Analysts say the broader trend in the Nifty50 index remains bullish, notwithstanding the intermediate sideways movement. According to Gaurav Ratnaparkhi of Sharekhan, the index formed a Hammer on the hourly chart in the second half of the session before bouncing sharply towards the end. “This bounce is unlikely to develop into a larger structure on the upside and is a part of the consolidation that started on June 1. The 15,600-15,400 zone is expected to be the range for the consolidation," he said.

    Check out the candlestick formations in the latest trading sessions
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    Stocks showing a bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Motherson Sumi Systems, ONGC, Adani Enterprises, JSW Energy, PTC India Financial, Sutlej Textiles, Bharat Forge, Heritage Foods, Adani Total Gas, Fineotex Chemical, Maithan Alloys, Gujarat Fluorochem, Steel City Securities, Magma Fincorp, Rajesh Exports, Olectra Greentech, Alphageo (India), Technocraft Industries, Torrent Pharma, J B Chemicals, Ambika Cotton Mi, Ashima, Power Mech Projects, Zota Healthcare, Bang Overseas, Vishnu Chemicals, Goa Carbons and Lakshmi Finance.

    The MACD is known for signalling 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 Himadri Speciality, Orient Cement, Sun TV Network, Chambal Fertiliser, Prince Pipes, 20 Microns, Coromandel International, Sadbhav Engineering, KNR Constructions, Motilal Oswal Finance, Aditya Birla Money, NCL Industries, Harrisons Malayalam, D-Link (India), Polycab India, Persistent Systems, Tribhovandas Bhimji, VLS Finance, Aavas Financiers, JK Cement, Vardhman Polytex, TPL Plastech, Sasken Technologies, Garware Tech Fibres, Orbit Exports, Esab India, Honda India Power, Rane Brake Lining, NBI Industrial and Naga Dhunseri Group. 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 3,697.93 crore), Motherson Sumi (Rs 2,604.18 crore), RIL (Rs 2,476.41 crore), Adani Ports SEZ (Rs 2,262.45 crore), ITC (Rs 2,030.43 crore), PNB (Rs 1,725.29 crore), SBI (Rs 1,681.46 crore), Tata Steel (Rs 1,435.56 crore), Infosys (Rs 1,274.85 crore) and Bajaj Finance (Rs 1,166.59 crore) were among the most active stocks on Dalal Street in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.

    Wednesday's most active stocks in volume terms
    PNB (Shares traded: 39.72 crore), Suzlon Energy (Shares traded: 17.39 crore), Vodafone Idea (Shares traded: 16.09 crore), Motherson Sumi (Shares traded: 10.12 crore), ITC (Shares traded: 9.67 crore), Reliance Power (Shares traded: 8.80 crore), JP Power (Shares traded: 8.32 crore), YES Bank (Shares traded: 7.71 crore), IDFC First Bank (Shares traded: 7.64 crore) and Bank of Baroda (Shares traded: 5.11 crore) were among the most traded stocks in the session.

    Stocks showing buying interest

    Sumitomo Chemical, Motherson Sumi, PNB Housing, JSW Holdings and Adani Gas witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

    Stocks seeing selling pressure
    Suryoday Small Finance Bank and Vikas Lifecare RE witnessed strong selling pressure in Thursday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.

    Sentiment meter favours bulls
    Overall, the market breadth remained in favour of bulls. As many as 371 stocks on the BSE 500 index settled the day in the green, while 127 settled the day in the red.

    Podcast: As D-Street takes a breather, what should investors watch out for? >>>

    Markets appear to have taken a breather after the recent rally. What should investors watch out for in the coming days? What are the Nifty charts suggesting? Will rising crude prices impact D-Street sentiments?



    ( Originally published on Jun 02, 2021 )
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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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