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

Starting the month of September on a negative note, Nifty failed to build on to the large gains made on the previous session and ended 1.2 per cent lower. IT, pharma and metal stocks were among the top losers, while realty, auto and PSU bank stocks edged higher.

Here's how analysts read the market pulse:

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the short-term trend remains range bound with high volatility. “There is a possibility of an upside bounce from near the lower support of 17,350-17,300 levels in the short term. Immediate resistance is placed at 17,650 levels,” he said.

Ruchit Jain, Lead Research, 5paisa.com, said the momentum readings on the daily chart had given a negative crossover which indicates we have already entered a corrective phase. "Until the index surpasses the major hurdles of 17,800 and 18,000, we are not out of the woods yet."

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

Wall St slips on economic, rate worries
Stocks are lower on Wall Street in morning trading Thursday, extending their losing streak to a fifth day as investors remain wary of how the economy will hold up as the Federal Reserve ratchets up interest rates to fight inflation.

The S&P 500 was down 1% as of 10:11 a.m. Eastern. The Dow Jones Industrial Average fell 230 points, or 0.7%, to 31,285 and the Nasdaq composite slid 1.4%.

The major indexes have closed lower four days in a row. The latest wave of selling continues a weak patch that has wiped out much of the gains the market made in July and early August.

European shares hit seven-week lows
The main European stocks index skidded to its lowest in seven weeks in a rough start to September on deepening worries about aggressive rate hikes and record-high inflation in the region.

The pan-European STOXX 600 shed 1.5% in early deals as all sectors traded lower, with the index headed lower for a fifth straight day.

Tech View: Small bullish candle
Nifty50 on Thursday ended up forming a small bullish candle on the daily scale, but with a long upper wick, suggesting intraday recovery was sold into.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Tata Teleservices (Maharashtra), Tata Power, DLF, Indian Hotels and IRFC.

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 NTPC, Indiabulls Housing, Bandhan Bank, IRCTC and Laxmi Organic.
A 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 2,371 crore), Bajaj Finserv (Rs 1,770 crore), HDFC Bank (Rs 1,646 crore), ICICI Bank (Rs 1,391 crore), Infosys (Rs 1,189 crore), and TCS (Rs 1,113 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
Tata Steel (Shares traded: 5.2 crore), ONGC (Shares traded: 2 crore), SBI (Shares traded: 1.7 crore), ICICI Bank (Shares traded: 1.6 crore), NTPC (Shares traded: 1.5 crore) and Hindalco (Shares traded: 1.4 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of M&M, Bajaj Auto, Maruti Suzuki, ITC and Coal India witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of Biocon were among those that witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured winners as 1,873 stocks ended in the green, while 1,565 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)