Ahead of Market: 10 things that will decide D-Street action on Friday

New Delhi: Bulls remained in charge for the fifth consecutive day today on the weekly expiry day. Nifty rallied over 84 points to end above the 16,600 mark. The rally was sharper in the broader market. Except for pharma, all other sectors ended in the green with banking, media and oil and gas being top gainers.

Here's how analysts read the market pulse:

Rupak De, Senior Technical Analyst at LKP Securities said that Nifty found resistance at the upper band of the rising channel, leading to brief profit-taking during the day. “The momentum indicator has its upside up indicating ongoing positive momentum in the value. The trend is likely to remain positive as long as the Nifty remains above 16,500. On the higher end, immediate resistance is placed at 16,670-16,700,” he said.

Prashanth Tapse, Vice President (Research), Mehta Equities said that Nifty has support at 16,471 and below the same, the index could find support at 16,300 mark.

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

Tesla keeps Nasdaq afloat
The Nasdaq rose on Thursday as electric automaker Tesla topped Wall Street's profit target, while the benchmark S&P 500 edged lower due to losses in telecom stocks after AT&T cut its cash flow forecast.

Tesla rose 5.5 per cent as its quarterly profit benefited from a string of price increases for its cars and helped offset production challenges.

At 9:49 a.m. ET the Dow Jones Industrial Average was down 155.17 points, or 0.49 per cent, at 31,719.67, the S&P 500 was down 6.23 points, or 0.16 per cent, at 3,953.67 and the Nasdaq Composite was up 16.50 points, or 0.14 per cent, at 11,914.15.

European markets mixed after ECB hike
A gauge of global stock markets lost ground after four straight sessions of gains, while the euro rose in volatile trading after the European Central Bank raised interest rates for the first time in more than a decade as it seeks to tame inflation.

The pan-European STOXX 600 index rose 0.16 per cent and MSCI's gauge of stocks across the globe.

Tech View: Bullish candle on daily chart
Nifty50 formed a bullish candle on the daily chart that engulfed the previous session's bearish candle, negating the latter's negative impact. That said, certain indicators suggest the index is in the overbought zone and the bulls are likely to face stiff resistance ahead, said analysts.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of TCI Express, Carborundum Universal, Nippon Life AMC, Coforge, Crisil and Birlasoft.

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 Elgi Equipments, Max Healthcare, Atul, Suven Pharma, HLE Glascoat and Mahanagar Gas.

Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms
IndusInd Bank (Rs 2,206 crore), RIL (Rs 1,893 crore), Wipro (Rs 933 crore), HDFC Bank (Rs 861 crore), Bajaj Finance (Rs 819 crore), and TCS (Rs 767 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
IndusInd Bank (Shares traded: 2.3 crore), Wipro (Shares traded: 2.3 crore), ONGC (Shares traded: 2.1 crore), ITC (Shares traded: 1.6 crore), SBI (Shares traded: 1.4 crore) and Hindalco (Shares traded: 1.2 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of CG Power & Industrial, ABB India, BEL, Cummins India, Siemens, Coromandel and Adani Gas witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure
Shares of Gland Pharma, Thyrocare and Policybazaar 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 1,944 stocks ended in the green, while 1,408 names settled with cuts.


(With inputs from agencies)


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