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

NEW DELHI: Given improved global cues and a fall in the US bond yields, the benchmark equity indices ended on a solid note on Tuesday. The Nifty50 gained 380 points to end at 17,274, whereas the Sensex climbed 1,275 points to notch 58,000 levels. Sectorally, all indices ended with sharp gains. Indian markets were shut on Wednesday on account of Dussehra.

Here's how analysts read the market pulse:

Deepak Jasani, Head of Retail Research, HDFC Securities, said: “Nifty closed sharply higher today, recording the best day in 5 weeks aided by positive global cues. Nifty opened the gap-up and kept inching up through the day. At close, Nifty closed 2.29% or 386.9 points higher at 17,274.3. Volumes on the NSE were surprisingly low compared to recent averages. Among sectors, Metals, Power, IT, Banks, Capital Goods, and Realty were the main gainers.”

Rupak De, Senior Technical Analyst at LKP Securities, said: "Nifty moved higher after consolidation on the daily chart suggesting a rise in optimism among the market participants. The index has placed itself above 200-DMA, which is a bullish setup. A decisive move above 17,300 may induce a strong rally in the market. On the lower end, support is at 17,090; resistance on the higher end is visible at 17,600/17,725."

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

US stocks slip after two-day rally
Wall Street stocks retreated early Wednesday following two strong sessions as markets digested solid US hiring data and awaited details of an expected production cut by global oil exporters. About 15 minutes into trading, the Dow Jones Industrial Average was down 0.9 percent at 30,054.40.

The broad-based S&P 500 dropped 1.1 percent to 3,749.87, while the tech-rich Nasdaq Composite Index fell 1.5 percent to 11,009.16.

European shares fall
European shares fell on Wednesday, after rallying more than 5% in the previous three sessions on easing worries about the pace of policy tightening, while investors' focus turned to a slew of regional and U.S. data due later in the day.

The continent-wide STOXX 600 index was down 0.5% by 0711 GMT.

Tech View: Long bullish candle
On the daily charts, the Nifty formed a long bullish candle as it ended with a gain of 387 points. The index has been forming higher bottoms for the last two sessions, indicating the continuation of the uptrend in the near future.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of ONGC, Lemon Tree, Brightcom Group, Rail Vikas, Anant Raj and Wipro.

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 Marico, Dr Lal Pathlabs, Quess Corp, Aurionpro and Hind Rectifiers.

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

Most active stocks in value terms
Adani Enterprises (Rs 1,822 crore), RIL (Rs 994 crore), Infosys (Rs 946 crore), Bajaj Finance (Rs 884 crore), and Adani Ports (Rs 850 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
IDFC First Bank (Shares traded: 12.66 crore), YES Bank (Shares traded: 11.2 crore), Vodafone Idea (Shares traded: 10.84 crore), Suzlon Energy (Shares traded: 10.03 crore), and Zomato (Shares traded: 4.70 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Apar Industries, Mazagon Dock, IDFC First, Kalyan Jewellers and Triveni Turbine, among others, witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

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

Sentiment meter favours bulls
Overall, market breadth favoured winners as 2,572 stocks ended in the green, while 874 names declined.

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