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

    Synopsis

    Wall Street's main indexes rose more than 1% on Wednesday after data showing a slower-than-expected rise in inflation in July prompted traders to cut their bets on a third straight 75-basis-point interest rate hike in September.

    Ahead of Market: 10 things that will decide D-St action on ThursdayShutterstock.com
    NEW DELHI: Nifty managed to hold above its 200-DMA for the eighth day in a row today as it closed above the 17,500 mark. Midcap and smallcap indices mildly underperformed the Nifty even as the advance decline ratio remained below 1:1 at 0.8.

    Here's how analysts read the market pulse:

    Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said that the short-term uptrend status remains intact, and there are no signs of any reversal pattern unfolding at the higher levels. "On any upside from here, the market could find strong resistance around 17,800 levels. Immediate support is at 17,450 levels," he said.

    Ajit Mishra, VP - Research, Religare Broking, reiterated his bullish view on markets and suggested continuing with the “buy on dips” approach until the Nifty holds 17,300.

    “Participants should align their positions accordingly and avoid contrarian bets,” he said.

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

    Wall Street cheers CPI surprise
    Wall Street's main indexes rose more than 1% on Wednesday after data showing a slower-than-expected rise in inflation in July prompted traders to cut their bets on a third straight 75-basis-point interest rate hike in September.

    At 9:46 a.m. ET, the Dow Jones Industrial Average was up 513.98 points, or 1.57%, at 33,288.39, the S&P 500 was up 73.23 points, or 1.78%, at 4,195.70, and the Nasdaq Composite was up 282.51 points, or 2.26%, at 12,776.44.

    All the 11 major S&P 500 sectors advanced in early trading, with consumer discretionary, information technology and communication services gaining between 1.7% and 2.6%.

    European stocks rally on softer US CPI
    Euro zone bond yields fell and European shares rallied on Wednesday, tracking moves in US markets after lower-than-expected U.S. inflation print for July cheered investors.

    European stocks, which were flat for most of the session, jumped immediately after the inflation figures, with the pan-European STOXX 600 rising 0.8% from 0.1% before the data.

    Tech View
    Nifty50 ended almost flat but stayed above its 200-day simple moving average for the eighth straight day. The index formed a Hanging Man candle on the daily chart, but there were no signs of weakness, said analysts, who see good support for the index near the 17,350 level.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of City Union Bank, AIA Engineering, IGL, Timken India, Narayana Hruday and Coromandel International.

    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 Home First Finance, KNR Constructions, Castrol India, Symphony, P&G Health and Pfizer. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

    Most active stocks in value terms
    ICICI Bank (Rs 2,009 crore), Bajaj Finance (Rs 1,371 crore), RIL (Rs 1,274 crore), HDFC Bank (Rs 1,271 crore), Hindalco (Rs 1,028 crore), and SBI (Rs 873 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
    Tata Steel (Shares traded: 7.4 crore), Hindalco (Shares traded: 2.4 crore), ICICI Bank (Shares traded: 2.4 crore), SBI (Shares traded: 1.7 crore), ONGC (Shares traded: 1.6 crore) and Coal India (Shares traded: 1.4 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of Fine Organic Industries, JK Paper, AIA Engineering, Metro Brands, Timken India, KEI Industries and Elgi Equipments witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

    Stocks seeing selling pressure
    Shares of Zensar Tech and Alembic Pharma witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

    Sentiment meter favours bears
    Overall, market breadth favoured losers as 1,509 stocks ended in the green, while 1,903 names settled with cuts.

    (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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