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    Ahead of Market: 12 things that will decide stock action on Friday

    Synopsis

    Nifty50 on Thursday formed a strong bullish candle on the daily chart as it snapped a three-day losing streak and rallied. The index negated lower highs and lows of the last two sessions.

    Ahead of Market: 12 things that will decide stock action on FridayiStock
    India VIX fell 9.96 per cent from 13.20 to 11.88 level. Declines in the volatility indicates the bulls are again holding the command and buying interest is seen at every meaningful decline.
    NEW DELHI: Nifty formed a strong bullish candle on the daily chart on Thursday, as it took out the crucial 15,800 level. Analysts said the index is likely to now face resistance at the 15,900 level.

    Here's how analysts read the market pulse:-

    Mazhar Mohammad of Chartviewindia.in said Nifty50 is in the consolidation mode. "A critical hurdle is present around the 15,950 level, hinting that upsides will remain capped for a while. Traders will be better off by remaining neutral on index," he said.

    Rohit Singre of LKP Securities said a close above 15,800 level has signalled an extension of the ongoing positive momentum towards the immediate range at 15,900-16,000. Support for the index, Singre said, has shifted to the 15,750-15,700 range.

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

    Wall Street ends flat
    The Dow Jones Industrial Average rose 25.35 points, or 0.07%, to 34,823.35, the S&P 500 gained 8.79 points, or 0.20%, to 4,367.48 and the Nasdaq Composite added 52.64 points, or 0.36%, to 14,684.60. Of the 11 major sectors of the S&P 500, tech was shining brightest, gaining 0.7%. Energy stocks suffered the largest percentage drop.

    European shares climb higher
    Although trading volatile in the session, the STOXX 600 ended 0.6 per cent higher, its third straight session of gains. At 456 points, the pan-European benchmark is now just a tad higher than where it was before Monday's selloff. Fears about the Delta variant are easing somewhat on the equities front even if lower bond yields today show concerns are still clouding the horizon on other asset classes.

    Tech View: Nifty forms bullish candle
    Nifty50 on Thursday formed a strong bullish candle on the daily chart as it snapped a three-day losing streak and rallied. The index negated lower highs and lows of the last two sessions. That said, analysts believe the NSE barometer is still in the consolidation phase and is likely to face resistance near the 15,900 level going forward.

    F&O: India VIX drops 10 per cent
    India VIX fell 9.96 per cent from 13.20 to 11.88 level. Declines in the volatility indicates the bulls are again holding the command and buying interest is seen at every meaningful decline. Options data suggested a broader trading range between 15,600 and 16,000 levels.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Sunflag Iron, India Cements, Jubilant Foodworks, Allcargo Logistics, Gujarat Gas, Aarti Industries, Radico Khaitan, Hisar Metal Industry, Muthoot Capital, Orient Abrasives, BLB, Vertoz Advertising, Sagar Cements, Vishwaraj Sugar, Kalyani Steel, PPAP Automotive, Mittal LifeStyle, Schaeffler India, Balaji Amines, Cholamandalam Finance, Shreyas Shipping, Madhucon Project, Geekay Wires, Orient Bell, HIL, Honda India Power and Lumax Industries.

    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 Ashok Leyland, HCL Technologies, Motherson Sumi Systems, Glenmark Pharma, Filatex India, Jain Irrigation, NOCIL, Tata Chemicals, D-Link (India), Torrent Power, Camlin Fine Sciences, DCB Bank, PI Industries, Shakti Pumps, ITI, HDFC AMC, Nagarjuna Fertilizer, Umang Dairies, Varun Beverages, Avanti Feeds, Century Textiles, KSB, Crest Ventures, Cyber Media (India), Bigbloc Construction, TVS Srichakra and Kingfa Science & Tech. 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 2,155.45 crore), Jubilant Food (Rs 1,779.25 crore), Havells India (Rs 1,499.67 crore), Infosys (Rs 1,241.56 crore), Bharti Airtel (Rs 1,067.36 crore), Tata Steel (Rs 999.31 crore), HDFC Bank (Rs 961.35 crore), TCS (Rs 918.46 crore), UltraTech Cement (Rs 866.39 crore) and HUL (Rs 862.56 crore) were among Thursday's most active stocks on Dalal Street in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.

    Most active stocks in volume terms
    Vodafone Idea (Shares traded: 68.23 crore), IDFC (Shares traded: 8.22 crore), SAIL (Shares traded: 6.80 crore), PNB (Shares traded: 5.36 crore), YES Bank (Shares traded: 5.23 crore), JP Power (Shares traded: 4.41 crore), IDFC First Bank (Shares traded: 4.41 crore), Indiabulls Real Estate (Shares traded: 2.68 crore), Bank of Baroda (Shares traded: 2.56 crore) and Reliance Communication (Shares traded: 2.46 crore) were among Thursday's most traded stocks in the session.

    Stocks showing buying interest
    Arvind Fashions, Berger Paints, Coforge, Divi's Laboratories, Jindal Stainless, Jubilant Food, IDFC and Jubilant Ingrevia witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Thursday signalling bullish sentiment.

    Stocks seeing selling pressure
    Akg Exim, Madhav Copper, Megasoft Limited - RE and PVP Ventures witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.

    Sentiment meter favours the bulls
    Overall, the market breadth remained in favour of the bulls. As many as 381 stocks on the BSE500 index settled the day in the green, while 113 settled the day in the red.

    Podcast: Will market see profit booking?
    Market snapped its three-day losing streak and soared to regain previous resistance levels. Will the market see some profit booking in the coming days? What do the Nifty tech charts suggest?



    ( Originally published on Jul 22, 2021 )
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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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