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

    Synopsis

    Nearly all major S&P sectoral indexes were trading in the green, with Amazon.com Inc and Tesla Inc up 4.0% and 3.8% respectively, and among top boosts to the benchmark S&P 500 index.Gains in both the stocks pushed up the consumer discretionary sector nearly 2%. Only healthcare stocks were an outlier, down marginally

    Ahead of Market: 10 things that will decide D-St action on ThursdayETMarkets.com
    In a highly volatile trade, equity benchmarks Sensex and Nifty ended on a flat note on Wednesday amid unabated foreign fund outflows and a weak trend in index heavyweight Reliance Industries. Continuing its previous day's decline, the 30-share BSE Sensex dipped 10 points to settle at 60,105. The broader NSE Nifty skidded 19 points to end at 17,896.

    The sectoral indices threw up mixed performance, with Nifty FMCG seeing the maximum cut of over 1%, while Nifty Metal emerged as the top sectoral gainer.

    Here's how analysts read the market pulse:

    “Currently, the market is witnessing non-directional activity and, perhaps, traders are waiting for either side to breakout. For bulls 18,000, would be the important breakout level to watch out for and above the same, we can expect a quick uptrend rally towards 18,100-18,150 levels. On the flip side, trading below 17,800 may trigger further weakness up to 17,700-17,675,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

    “Global stocks were largely higher on optimism over reopening in China, hopes of less aggressive US interest rate hikes aided the sentiment and traders bet that US consumer price data on Thursday will show further softening. Nifty continues to be range-bound in a wide band of 17,774-18,141. A move on either side of this range could result in an accelerated shift in that direction,” Deepak Jasani, Head of Retail Research, HDFC Securities, said.

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

    US market
    Wall Street's main indexes rose on Wednesday led by gains in rate-sensitive growth stocks as the focus shifts to a key inflation reading due later this week, which would provide more clues on the Federal Reserve's rate hike trajectory.

    Nearly all major S&P sectoral indexes were trading in the green, with Amazon.com Inc and Tesla Inc up 4.0% and 3.8% respectively, and among top boosts to the benchmark S&P 500 index.
    Gains in both the stocks pushed up the consumer discretionary sector nearly 2%. Only healthcare stocks were an outlier, down marginally. Money market participants see a 77% chance the Fed will raise the benchmark rate by 25 basis points to 4.50%-4.75% in February, and see rates peaking at 4.92% by June.At 10:05 a.m. ET, the Dow Jones Industrial Average was up 100.21 points, or 0.30%, at 33,804.31, the S&P 500 was up 19.72 points, or 0.50%, at 3,938.97, and the Nasdaq Composite was up 69.58 points, or 0.65%, at 10,812.21.

    European shares
    European shares edged up on Wednesday, lifted by Bayer and LVMH, while optimism over reopening in China and hopes of less aggressive U.S. interest rate hikes aided the sentiment. The pan-regional STOXX 600 gained 0.1% by 0818 GMT.

    Tech View: Small negative
    A small negative candle was formed on the daily chart with minor upper and lower shadow. Normally such actions are considered as high wave type candle patterns and they indicate high volatility in the underlying. But, having formed this pattern at the support post weakness of one session, signals a minor halt in the underlying trend of the market at the important support.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Marksans Pharma, Hindalco, Easy Trip Planners and DLF, among others.

    The MACD is known for signalling trend reversals in 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 Federal Bank, KNR Constructions, Aries Agro and Gokul Refoil, 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
    Bharti Airtel (Rs 2,167 crore), RIL (Rs 1,346 crore), ICICI Bank (Rs 1,345 crore) and HDFC Bank (Rs 1,204 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: 18.07 crore), Vodafone Idea (Shares traded: 11.38 crore), PNB (7.53 crore), and IOB (Shares traded: 7.08crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of CG Power, Schneider, Cadila Healthcare and JSPL witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

    Stocks seeing selling pressure
    Shares of Vodafone Idea, Galaxy Surfactants, Gland Pharma and Atul hit their 52-week lows on Tuesday, which signals bearish sentiment on the counter.

    Sentiment meter favours bulls
    Overall, the market breadth favoured bulls as 1,706 stocks ended in the red while 1,790 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)



    (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 .)

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    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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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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