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

    Synopsis

    The pan-European STOXX 600 was up 0.3% by 0943 GMT, after clocking its biggest January gain since 2015 at 6.7%, on hopes of better-than-expected corporate earnings and signs of economic resilience. Sweden's Husqvarna jumped 5.6% to the top of the STOXX 600 after the Swedish gardening power tools maker reported better-than-expected fourth-quarter sales, while Danish drug maker Novo Nordisk rose 0.6% on strong 2023 sales growth expectations

    Ahead of Market: 10 things that will decide D-St action on ThursdayAgencies
    Weighed down by continued sell-off in Adani Group stocks, Nifty ended 0.26% lower at 17,616. Sensex ended 0.27% higher at 59,708 as Union Budget 2023 lifted investor sentiments. Meanwhile, broader markets ended lower, with Nifty Midcap 100 losing around 1%.

    Here's how analysts read the market pulse:
    “With a significant support level around 17,450 and a resistance level of 18,100, Nifty has managed to maintain above its 200 EMA. Bank Nifty also succeeded in maintaining above the 200 EMA, it has a critical support level of 39600 and a resistance level of 41,700,” Ameya Ranadive, Equity Research Analyst, Choice Broking, said.

    “Nifty showed large volatility on Budget Day (619 point range) which is not unusual. In the process, it made a new intraday low. The US Fed meeting outcome is due and could impact the Indian markets on Thursday, however, this kind of volatility may not be repeated. Nifty continues to face resistance at around 17,760 levels, while support levels have now fallen to 17,353,” said Deepak Jasani, Retail Research- Head, HDFC Securities.

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

    US market
    US stock indexes fell on Wednesday ahead of the Federal Reserve's decision on interest rates later in the day, while an upbeat outlook from Advanced Micro Devices lifted chipmakers.

    The Fed is widely seen as raising its target interest rate by a quarter of a percentage point in its first policy meeting of the year, after the rapid increases in 2022 to tame decades-high inflation. At 10:26 a.m. ET, the Dow Jones Industrial Average was down 219.55 points, or 0.64%, at 33,866.49, the S&P 500 was down 10.80 points, or 0.26%, at 4,065.80, and the Nasdaq Composite was down 17.20 points, or 0.15%, at 11,567.35.

    European shares
    European shares edged higher on Wednesday as industrial stocks gained, while investors awaited the outcome of the U.S. Federal Reserve's first policy meeting this year.

    The pan-European STOXX 600 was up 0.3% by 0943 GMT, after clocking its biggest January gain since 2015 at 6.7%, on hopes of better-than-expected corporate earnings and signs of economic resilience. Sweden's Husqvarna jumped 5.6% to the top of the STOXX 600 after the Swedish gardening power tools maker reported better-than-expected fourth-quarter sales, while Danish drug maker Novo Nordisk rose 0.6% on strong 2023 sales growth expectations.

    Tech View: Long bearish candle
    A long bear candle was formed on the daily chart with long upper and lower shadow. Technically, this pattern indicates high volatility in the market. The formation of long lower shadows in the last four daily candles signal presence of strong support at 17,400-17,300 levels and the market could once again show upside bounce in the coming sessions. The important support of 200 day EMA was seen on Wednesday after a downside violation at 17,550 levels. This is a positive indication.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Indian Hotels, Borosil Renewables, Voltas, Praj Industries and JK Lakshmi Cement among others.

    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 signaling weakness ahead
    The MACD showed bearish signs on the counters of Bandhan Bank, Sun Pharma, Engineers India, Tech Mahindra and Oil India, among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

    Most active stocks in value terms
    Adani Enterprises (Rs 3,436 crore), ICICI Bank (Rs 3,348 crore), Ambuja Cements (Rs 2,775 crore) and Adani Ports (Rs 2,535 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 highest trading turnovers in the day.

    Most active stocks in volume terms
    Yes Bank (Shares traded: 16.54 crore), PNB (Shares traded: 15.96 crore), Suzlon Energy (Shares traded: 14.49 crore), Vodafone Idea (Shares traded: 12.26 crore) and IRFC (Shares traded: 7.84 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of Jindal Steel and Power, ITC, Polycab India, PNC Infratech and Mahindra CIE among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

    Stocks seeing selling pressure
    Shares of Adani Ports, ICICI Prudential Life, LIC, TV18 Broadcast and Piramal Pharma among others hit their 52-week lows, signaling bearish sentiment on the counters.

    Sentiment meter favours bears
    Overall, market breadth favoured bears as 2,368 stocks ended in the red while 1,176 names settled with gains.

    (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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