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

Amid softening crude oil prices, the Nifty rallied over 1 per cent on Wednesday to end near the psychologically-important 16,000 mark. The broader market too ended in green, with midcaps gaining 1.% while smallcaps gaining 0.5%. Banks and FMCG stocks led the rally.

Here's how analysts read the market pulse:

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said a sharp cool-off in oil prices has improved sentiments for oil-sensitive sectors like FMCG, cement, paint and auto. “Nifty now needs to sustain above 16,000 mark to keep the positive momentum going ahead.”

Ajit Mishra, VP - Research, Religare Broking, said Nifty has the potential to inch towards the 16,200 mark, but the upcoming earnings season would play a critical role in the sustainability of the rebound.

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

Stocks waver on Wall Street
Stocks wavered between small gains and losses in morning trading on Wall Street Wednesday as worries about inflation, rising interest rates and a potential recession weigh on the broader market.

The S&P 500 fell 0.1% as of 10:19 a.m. Eastern. The Dow Jones Industrial Average fell 38 points, or 0.1%., to 30,929 and the Nasdaq fell 0.2%.

European stocks rebound
European stock markets rebounded on Wednesday, recovering some ground following sharp losses the previous session on fears of a global recession. The continent-wide STOXX 600 was up 1.7%, after ending 2.1% lower in the previous session as the strike in Norway threatened to cut energy supplies.

Germany's DAX gained 1.6% after losing almost 3% in the previous session as industrial orders grew surprisingly in May, reversing the trend after a third consecutive monthly drop.

Tech View: Bullish candle on daily chart
Nifty50 formed a bullish candle on the daily chart that almost engulfed the negative candle of the previous session. As long as the index sustains above 15,800, it can be in a bright spot to bridge a bearish gap with a close above the 16,172 level, said Mazhar Mohammed of Chartviewindia.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Jyothy Labs, Macrotech Developers, Concor, Titan Company, TCI Express and EID Parry.

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 Affle, Atul, RITES, Indo Count, Uflex and Vardhman Textiles. 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 2,664 crore), Bajaj Finance (Rs 1,301 crore), HUL (Rs 1,176 crore), HDFC Bank (Rs 1,027 crore), Kotak Bank (Rs 941 crore), and ICICI Bank (Rs 884 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
ONGC (Shares traded: 5.9 crore), Hindalco (Shares traded: 2.2 crore), ITC (Shares traded: 1.8 crore), NTPC (Shares traded: 1.6 crore), PowerGrid (Shares traded: 1.4 crore) and Tata Motors (Shares traded: 1.2 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of ABB India, Blue Dart, KPI Green Energy, and Rolex Rings witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of Indiabulls Real Estate, Hindustan Zinc, Thyrocare, IDBI Bank, Wockhardt and IndiaMART witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured losers as 1,751 stocks ended in the green, while 1,556 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)