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

    Synopsis

    Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said after showing a consistent upmove in the last few sessions, Nifty witnessed an excellent upside recovery from the lows on Wednesday and closed the day lower by 66 points

    Ahead of Market: 10 things that will decide D-St action on ThursdayAgencies
    Domestic benchmark indices snapped their 4-day winning run, mirroring global sell-off, with Nifty still managing to hold 18,000 levels at the close. Bank Nifty hogged the limelight even as the broader markets corrected. Sectorally, most pain was seen in the IT pack, which ended with a deep cut of over 3 per cent.

    Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said after showing a consistent upmove in the last few sessions, Nifty witnessed an excellent upside recovery from the lows on Wednesday and closed the day lower by 66 points. Nifty opened with a sharp downside gap of 299 points on the backdrop of weak global cues and started with a smart upside recovery from the lows soon after the opening. Minor weakness was seen at the highs towards the end, and Nifty closed near the highs. The opening downside gap has been filled completely.

    Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, maintained that Indian markets displayed strong resilience in the face of negative global cues. While markets opened 1.6% lower, they showed a steady recovery throughout the day to wipe out the entire opening loss and managed to close near day’s high with a marginal loss of 0.4%. Nifty reclaimed its 18,000 level, and we expect the momentum to continue in the near term towards 18,200.

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

    US stocks post modest gains
    Wall Street's main indexes were higher on Wednesday following a sharp selloff in the previous session after red-hot inflation data fanned worries about how much and how long the US Federal Reserve will hike interest rates.

    The Dow Industrial Average added 106 points, or 0.3%. The S&P 500 gained 0.4%, and Nasdaq Composite ticked up about 0.4%. Markets are also pricing in a 37% chance of a massive 100 bps increase by the central bank, and expects rates to peak at 4.34% by March 2023.

    European shares drop
    European shares dipped on Wednesday after higher-than-expected US inflation cemented views of a large interest rate hike by the Federal Reserve next week, but a rally in retailers led by Spain's Inditex kept declines in check.

    The continent-wide STOXX 600 index slipped 0.99%, with rate-sensitive technology stocks down 0.5%. The banks index in Europe edged 0.5% higher.

    Tech View: A long bullish candle
    A long bullish candle formed on the daily chart with a minor upper shadow. Technically, this pattern indicates emergence of sharp buying interest from the lower support. After moving above the important resistance of the down sloping trend line at 17,900 levels recently, the Nifty witnessed sharp buying from near that trend line support as per the concept of change in polarity. This is a positive indication.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of LT Foods, Kalyan Jewellers, Canara Bank, HDFC Bank, Oriental Hotels, Sterlite Technologies and Orient Paper. 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 Suzlon Energy, Jaiprakash Power, Hathway Cable, NLC India, Crompton Greaves and NCC, 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
    Ambuja Cements (Rs 2911 crore), Infosys (Rs 2,122 crore), Vedanta (Rs 1853 crore), TCS (Rs 1591 crore), and HDFC Bank (Rs 1536 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
    YES Bank (Shares traded: 13.71 crore), Vodafone Idea(Shares traded: 12.43 crore), Zomato (Shares traded: 11.98 crore), Suzlon Energy (Shares traded: 9.81 crore), and Tata Steel (Shares traded: 8.64 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of Bajaj Holdings, Ambuja Cements, ITC, SBI, Indian Hotels, and BoB 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 Enterprises, Alembic Pharma and Sanofi India witnessed strong selling pressure and hit its new 52-week lows, signaling bearish sentiment on the counters.

    Sentiment meter favours bulls
    Overall, market breadth favoured losers as 1,843 stocks ended with cuts, while 1,633 stocks advanced.

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







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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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