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

Having rallied non-stop for the last seven days, the headline index Nifty50 is now less than four per cent away from lifetime high levels. Analysts said that the recent rally is boosted by softening inflation and strong FII buying. On Wednesday, the Nifty ended at 17,944 and Sensex at 60,260.

Here's how analysts read the market pulse:

Osho Krishan, Sr Analyst - Technical & Derivative Research, Angel One, said the unilateral movement of the index has placed it towards the psychological mark of 18,000, which might hinder the ongoing up move, followed by the weekly swing high of 18,100-18,150 odd levels that might act as a sturdy wall for the bulls.

Mohit Nigam, Head - PMS, Hem Securities, Nifty50 may take support at 17,750 level and face resistance at 18,180 level. “For Bank Nifty, the immediate support and resistance levels are 39,000 and 40,000, respectively,” he added.

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

Wall Street falls as growth stocks slide
Wall Street's main indexes fell on Wednesday with growth stocks under renewed pressure as bond yields climbed ahead of minutes from the Federal Reserve's July meeting, while weak results from Target dragged the retail sector lower.

The S&P 500 retail sector declined 1.2%, after jumping 1.9% in the previous session on encouraging quarterly earnings from Walmart Inc and Home Depot Inc.

At 09:51 a.m. ET, the Dow Jones Industrial Average was down 194.64 points, or 0.57%, at 33,957.37, the S&P 500 was down 34.07 points, or 0.79%, at 4,271.13, and the Nasdaq Composite was down 152.85 points, or 1.17%, at 12,949.70.

European stocks drop
European stock markets fell Wednesday as official data showed UK inflation surging to a new 40-year high. The pan-European Stoxx 600 slipped 1 % by late afternoon, having given up earlier gains.

Tech View: Small bullish candle
On the daily chart, the index formed a small bullish candle with a longer lower shadow. It has been forming higher highs from the last six sessions.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Aarti Drugs, ICICI Securities, Edelweiss Financial, SBI Cards, SterlingWilson Solar and Firstsource.

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 NHPC, Shriram City Union, CRISIL, ESAB India, Praj Industries and CreditAccess Grameen.

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

Most active stocks in value terms
Bajaj Finance (Rs 1,764 crore), Bajaj Finserv (Rs 1,578 crore), HDFC Bank (Rs 931 crore), RIL (Rs 812 crore), ICICI Bank (Rs 798 crore), and Tata Motors (Rs 780 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: 5.4 crore), NTPC (Shares traded: 2 crore), Tata Motors (Shares traded: 1.5 crore), ONGC (Shares traded: 1.6 crore), Hindalco (Shares traded: 1.2 crore) and SBI (Shares traded: 1.2 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Eicher Motors, ICICI Bank, SBI Life and Bajaj Auto witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of Iris Business Services Limited 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 1,960 stocks ended in the green, while 1,460 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)