Ahead of Market: 12 things that will decide D-Street action on Friday

NEW DELHI: After falling for four days, the benchmark indices rose as many of the heavyweight constituents saw buying on Thursday. Analysts believe investors should keep accumulating the stock.

Here's how analysts read the market pulse:

Rupak De, Senior Technical Analyst at LKP Securities, said the daily RSI is in bullish crossover and rising. “Over the near term, the trend may remain positive as long as it remains above 16,400. On the higher end, resistance is visible at 16,600/16,800,” he said.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas, said: Nifty tested multiple support parameters on the downside, which were present near 16,300, including 20 DMA, a falling trendline and the lower end of a rising channel.

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

US stocks lose ground
Stocks fell in afternoon trading on Wall Street Thursday as investors struggle to find some direction for markets amid persistently choppy trading.

The S&P 500 fell 0.5% as 12:01 of p.m. Eastern. The Dow Jones Industrial Average fell 125 points, or 0.4%, to 32,792 and the Nasdaq fell 0.5%. Retailers and makers of consumer goods mostly gained ground. Dollar General rose 1.8% and Costco rose 2.4%.

European stocks close lower
European equities tumbled the most in three weeks after the European Central Bank announced plans to raise interest rates to fight surging inflation and warned of higher inflation and weaker economic growth.

The Stoxx Europe 600 closed 1.4% lower, falling the most since May 19, with real estate and technology shares leading declines.

Tech View: Bearish candle
NSE Nifty 50 index, after falling for four days, saw a positive close on Thursday. The index, in the process, formed a bullish engulfing candle on daily charts, which suggests bullishness.

F&O: Support at 16,000
On the call side, the biggest open interest is at 16,550 followed by 16,600, meaning these are two resistance levels. On the put side, open interest converges at 16,450, followed by 16,400, providing support.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Biocon, India Energy Exchange, Bharat Forge, Bajaj Auto, Vaibhav Global and Adani Transmission.

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 Minda Industries, Aditya Birla Retail, GMR Infra, Bata India, KIMS and Ratnamani Metal. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks in value terms
Reliance Industries (Rs 2204 crore), Tata Steel (Rs 1040 crore), Oil India (Rs 861 crore), Bajaj Finance (Rs 729 crore), MRPL (Rs 669 crore), and Infosys (Rs 656 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: 7 crore), Vodafone Idea (Shares traded: 7 crore), RattanIndia Power (Shares traded: 6 crore), MRPL (Shares traded: 6 crore), Zomato (Shares traded: 5 crore) and JP Power (Shares traded: 4 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Oil India witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Medplus Health, Hikal, Equitas Holdings, Shree Cements, Nuvoco Vistas, Vakrangee and Deepak Nitrite witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured gainers as 1,707 stocks ended in the green, while 1,612 names settled with cuts.