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

    Synopsis

    Indian benchmark indices Sensex and Nifty ended lower in a highly volatile trade on Thursday due to selling in banking, metal, and energy counters amid a mixed trend in global markets. The 30-share BSE Sensex declined by 194 points to settle at 62,428.54, marking the second consecutive day of losses. While investors turned cautious about inflationary pressure in the US after raising the US debt ceiling, the domestic market displayed better than estimated Q4 earnings growth and 7.2% GDP growth in FY23.

    Ahead of Market: 10 things that will decide D-Street action on FridayETMarkets.com
    Equity benchmark indices Sensex and Nifty ended lower in highly volatile trade on Thursday due to selling in banking, metal and energy counters amid a mixed trend in the global markets. Falling for the second day in a row, the 30-share BSE Sensex declined 194 points to settle at 62,428.54. Nifty ended below 18,500, while broader markets outperformed.

    Here's how analysts read the market pulse:
    “Despite challenges in the global economies, the domestic market displayed better than estimated Q4 earnings growth, along with 7.2% GDP growth in FY23, adding buoyancy to the market during the week. However, today the market closed with a marginal negative bias in which banks witnessed heavy profit booking. Investors turned cautious in anticipation of inflationary pressure in the US after raising the US debt ceiling. The US 10-year bond yield inched higher; the market is looking ahead to the trajectory of US interest rates to get more visibility,” said Vinod Nair, Head of Research at Geojit Financial Services.

    “The overall sentiment in the market is expected to remain negative until the Nifty index manages to surpass the 18500 level. If the index fails to move back above this level, it could potentially lead to a correction in the market. On the downside, there is support expected around the range of 18,300-18,350. Conversely, resistance can be anticipated at the higher end around 18650,” Rupak De, Senior Technical, LKP Securities, said.

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

    US market
    The Dow fell on Thursday after dismal earnings from Salesforce tempered optimism sparked by passage of a bill by lawmakers to suspend the nation's debt ceiling and bets that the Federal Reserve will skip raising interest rates in its next meeting.

    The bill to suspend the $31.4 trillion debt ceiling on Wednesday passed with majority support from both Democrats and Republicans and will now head to the Senate, which must enact the measure before a Monday deadline, when the government is expected to run out of money to pay its bills.

    At 10:10 a.m. ET, the Dow Jones Industrial Average was down 93.94 points, or 0.29%, at 32,814.33, the S&P 500 was up 3.98 points, or 0.10%, at 4,183.81, and the Nasdaq Composite was up 21.26 points, or 0.16%, at 12,956.54.

    Meta Platforms Inc added 2.4%, helping boost the Nasdaq after unveiling its next-generation mixed reality headset named Quest 3.

    European shares
    European stocks rose on Thursday as investors awaited regional inflation data for clues on how much longer the European Central Bank will hike interest rates, with hopes that the US will avoid a debt default aiding the sentiment.

    The pan-European STOXX 600 index rose 0.9% after closing at a two-month low in the previous session.

    Tech View: Pattern of higher tops and higher bottoms sustains

    On daily charts, we observe that while Nifty has corrected in the last two sessions, the pattern of higher tops and higher bottoms seen since the March 2023 lows has not been disturbed. This indicates that the intermediate uptrend remains intact. We expect the Nifty to find support around the previous swing high of 18459 before again resuming the uptrend. Of course, if this support fails to hold, then a further correction is likely.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of IRB Infra, NBCC, Union Bank and Alok Industries 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 Kotak Mahindra Bank, Max Healthcare, Vedanta, TVS Motor and SBI Cards 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
    HDFC Bank (Rs 4,060 crore), ICICI Bank (Rs 2,048 cr), RIL (Rs 1665 cr), Kotak Bank (Rs 1158 crore) and Adani Gas (Rs 1140 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
    Suzlon Energy (Shares traded: 31.60 crore), Zomato (Shares traded: 5.78 crore), YES Bank (Shares traded: 8.59 crore), Vodafone Idea (Shares traded: 3.95 crore), and Reliance Power (Rs 4.49 crore) among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of Essel Propack, PNB Housing, Zensar Tech and 3M India witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

    Stocks seeing selling pressure
    Shares of Bombay Metrics,Sheetal Cool, SITI Networks and Viji Finance, among others, hit their 52-week lows, signaling bearish sentiment on the counters.

    Sentiment meter favours bulls
    Overall, market breadth favoured bulls as 2,030 stocks ended in the green, while 1,513 names settled with losses.

    (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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