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

    Synopsis

    The MACD showed bearish signs on the counters of Atul, Avanti Feeds, Chalet Hotels, Godfrey Phillips, Ircon International and MOIL. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

    Ahead of MarketAgencies
    Overall, market breadth favoured losers as 662 stocks ended in the green, while 2,671 names settled with cuts.
    NEW DELHI: Market continues to be under pressure amid soaring inflation and sell-off in shares globally. Indian benchmark indices also fell for the third consecutive day on Wednesday. Analysts believe this is the right time to pick quality stocks at lower valuations.

    Here's how analysts read the market pulse:

    Independent Analyst Manish Shah said the bearishness in the market is palpable, but the fact remains that the Nifty50 has not made a new low since May 16.

    Mazhar Mohammad of Chartviewindia.in said that if the bulls fail to make a comeback on Thursday, it may eventually test the recent low present at around the 15,775 level.

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

    Wall Street rises ahead of Fed minutes
    US stock indexes shook off early weakness to trade higher on Wednesday as growth stocks rallied, with investors awaiting minutes from the Federal Reserve's May meeting for clues on the path of its policy tightening.

    At 10:48 a.m. ET, the Dow Jones Industrial Average was up 122.42 points, or 0.38%, at 32,051.04, the S&P 500 was up 21.59 points, or 0.55%, at 3,963.07, and the Nasdaq Composite was up 93.95 points, or 0.83%, at 11,358.39.

    European stocks close higher
    European stocks closed higher Wednesday as global markets tried to bounce back from a widespread retreat in the previous session. The pan-European Stoxx 600 provisionally closed up by 0.8%.

    Tech View: Bearish candle
    Nifty50 fell for the third day and formed a bearish candle on the daily chart. During the session, the index managed to defend the 16,000 mark and continued its recent consolidation. Analysts said rangebound moves may continue in the coming days and that any upside on Nifty50 will face hurdles at the 16,400 level.

    F&O: Support at 16,000
    On the call side, the biggest open interest is at 16,500 followed by 16200, meaning these are two resistance levels. On the put side, open interest converges at 15,500, followed by 16,000, providing support.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Brightcom Group, Aster DM Healthcare, HDFC Life, AstraZeneca, Advanced Enzyme Tech and TCI Express.

    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 Atul, Avanti Feeds, Chalet Hotels, Godfrey Phillips, Ircon International and MOIL. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

    Most active stocks in value terms
    Reliance Industries (Rs 1541 crore), Infosys (Rs 1366 crore), Kotak Mahindra Bank (Rs 1199 crore), TCS (Rs 1134 crore), Tata Steel (Rs 997 crore), Asian Paints (Rs 980 crore) and Adani Power (Rs 959 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
    Zomato (Shares traded: 10 crore), Vodafone Idea (Shares traded: 9 crore), YES Bank (Shares traded: 9 crore), SAIL (Shares traded: 6 crore), JP Power (Shares traded: 4 crore) and PNB (Shares traded: 4 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Coromandel International stocks witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

    Stocks seeing selling pressure
    Divi’s Labs, Wipro, JSW Steel, Shree Cements and Tata Steel 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 662 stocks ended in the green, while 2,671 names settled with cuts.

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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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