The Economic Times daily newspaper is available online now.

    Ahead of Market: 12 things that will decide D-Street action on Thursday

    Synopsis

    For Rupak De, Senior of LKP Securities, 50-EMA has been acting as a crucial resistance. "The trend remains sideward for the near term. Support is visible at 16,400, whereas resistance is likely to remain intact at 16,700," he said.

    Ahead of Market: 12 things that will decide D-Street action on Thursday
    The market could see minor weakness for another one or two sessions before showing a sharp upside bounce from the low. The near term upside target remains intact at 16,800 levels," said Nagaraj Shetti at HDFC Securities.
    NEW DELHI: Indian markets have seen some recovery in the past few days as investors grabbed stocks at low valuations, but choppiness continues. Analysts also believe this is the right time to pick quality stocks at a cheap valuation.

    Here's how analysts read the market pulse:

    For Rupak De, Senior of LKP Securities, 50-EMA has been acting as a crucial resistance. "The trend remains sideward for the near term. Support is visible at 16,400, whereas resistance is likely to remain intact at 16,700," he said.

    "The near term uptrend of the Nifty50 remains intact and the present consolidation or minor weakness could be considered a 'buy on dips' opportunity for the short term. The market could see minor weakness for another one or two sessions before showing a sharp upside bounce from the low. The near term upside target remains intact at 16,800 levels," said Nagaraj Shetti at HDFC Securities.

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

    Wall Street mixed after robust earnings
    Stocks on Wall Street are mixed on Wednesday after robust quarterly earnings from luxury retailers and Salesforce Inc, while manufacturing data showed demand for goods remained strong in May.

    The Dow Jones Industrial Average fell 0.26%, the S&P 500 lost 0.19% and the Nasdaq Composite added 0.31%.

    European stocks make choppy start to Jun
    European shares gave up early gains on Wednesday as weak German retail sales and slowing factory activity in the euro zone fanned worries about economic growth amid record high inflation.

    The pan-European STOXX 600 index was down 0.3%, after gaining as much as 0.4% in early trading. The benchmark shed 1.6% in May as surging inflation stoked worries about aggressive central bank action.

    Tech View: Bullish candle
    Nifty50 fell for the second day and formed a small bearish candle on the daily chart. The index made a lower high formation, but analysts believe the recent positive momentum stays intact as long as the 16,400 level is held on a daily basis.

    F&O: Support at 16,000
    On the call side, the biggest open interest is at 17,000, followed by 16,800, meaning there are two resistance levels. On the put side, open interest converges at 16,000, followed by 16,500, providing support.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Shree Renuka Sugars, Orient Refractories, Suzlon Energy, Polyplex Corporation, Prestige Estate and Prism Johnson.

    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 Triveni Turbine and Adani Gas. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

    Most active stocks in value terms
    Infosys (Rs 1,303 crore), Reliance Industries (Rs 1,190 crore), Tata Steel (Rs 1,002 crore), Zomato (Rs 972 crore), Adani Green (Rs 885 crore), HDFC Bank (Rs 841 crore) and M&M (Rs 819 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
    Zomato (Shares traded: 13 crore), Vodafone Idea (Shares traded: 12 crore), Suzlon Energy (Shares traded: 8 crore), GTL Infra (Shares traded: 5 crore), JP Power (Shares traded: 4 crore) and Renuka Sugars (Shares traded: 4 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Timken India, Fine Organic, KEI Industries, HAL, Blue Dart, Sumitomo Chemicals and M&M witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

    Stocks seeing selling pressure
    Hikal and Ipca Labs witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

    Sentiment meter favours bulls
    Overall, market breadth favoured gainers as 1,775 stocks ended in the green, while 1,555 names settled with cuts.



    (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


    (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
    The Economic Times

    Stories you might be interested in