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

    Synopsis

    “The uptrend status of Nifty as per long-term charts like weekly is still intact and present consolidation or minor weakness in the market could be considered as a buy on dips opportunity," Nagaraj Shetti, Technical Research Analyst, HDFC Securities, says

    Ahead of Market: 10 things that will decide D-Street action on ThursdayiStock
    Indian equity indices closed marginally higher on Wednesday as its opening gains in banking and financial stocks were offset by declines in index heavyweights Reliance, Bharti Airtel and IT stocks. The BSE Sensex ended 92 points higher at 61,510 while its broader peer Nifty 50 ended above the 18,250 level.

    Here's how analysts read the market pulse:

    “The uptrend status of Nifty as per long-term charts like weekly is still intact and present consolidation or minor weakness in the market could be considered as a buy on dips opportunity. As long as the support of 18,100-18,000 levels is protected, one may expect consolidation movement to continue. A decisive move above 18,400 levels is likely to open a new all time high of 18,600+ levels in the near term,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.

    "After a positive start, the Nifty turned lackluster, it consolidated between 18,250 and 18,300, lacking directional action on either side. However, Bank Nifty resumed its upward trajectory at an all time higher zone, defending levels of 42,500. Bank Nifty, however, formed an indecisive candle. Most banking stocks ended in green, public banking stocks continue to trace out bullish patterns,” Amit Trivedi, Technical Analyst - Institutional Equities at YES Securities, said.

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

    US market
    Wall Street's main indexes rose on Wednesday as growth stocks gained after a mixed bag of economic data led to a drop in Treasury yields, while investors awaited minutes from the Federal Reserve's last policy meeting.

    Heavyweight stocks including Apple Inc Microsoft Corp, Amazon.com Inc and Meta Platforms Inc rose between 0.4% and 0.7%. Tesla Inc jumped 5.2%, outperforming its peers, after Citigroup upgraded the electric-vehicle maker's stock to 'neutral' from a 'sell' rating.

    At 10:23 am ET, the Dow Jones Industrial Average was up 79.42 points, or 0.23%, at 34,177.52, the S&P 500 was up 16.28 points, or 0.41%, at 4,019.86, and the Nasdaq Composite was up 88.81 points, or 0.79%, at 11,263.21.

    Deere & Co jumped 7.1% to lead the gains on S&P 500 as the farm equipment maker reported a higher-than-expected quarterly profit on strong sales powered by price hikes.

    Shares of Nordstrom Inc fell 7.8% after the fashion retailer cut its profit forecast amid steep markdowns to attract inflation-wary customers. The S&P 500 energy sector index fell 1.4% tracking lower oil prices after the Group of Seven nations looked at a price cap on Russian oil.

    European shares
    European stocks hovered near three-month highs on Wednesday, as rallying commodity shares offset weakness in Credit Suisse following its profit warning, with investors awaiting business activity data for clues on the health of the euro zone economy.

    The Europe-wide STOXX 600 index was flat by 0805 GMT, after hitting its strongest level since late-August in the previous session. Oil & gas and mining stocks extended gains for a second session, and were up 0.9% each.

    Tech View: Small negative candle
    Nifty today formed a small negative candle on the daily charts, signalling that bulls are finding it tough to hold higher levels. Now, it has to hold above 18,200 zones, for an up move towards 18,350 then 18,442 zones whereas supports are placed at 18,088 and 17,950 zones, said Chandan Taparia of Motilal Oswal.

    Stocks showing bullish bias

    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Devyani International, Wockhardt, HDFC Life, Varun Beverages, IndusInd Bank and HUL, 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 MMTC, JK Lakshmi Cement, Mahindra Lifespace, JSW Steel, Nesco and Supreme Petrochem, 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
    Adani Enterprises (Rs 1,131 crore), ICICI Bank (Rs 1,016 crore), HDFC Bank ( Rs 814 crore), RIL (Rs 758 crore), SBI (754 crore), Bajaj Finance (Rs 604 crore) and Maruti Suzuki (Rs 555 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

    Tata Steel (Share traded: 2.28 crore), SBI (Share traded: 1.2 crore), NTPC (Share traded: 1.2 crore), ICICI Bank (Share traded: 1.1 crore), Power Grid ( Share traded 1 crore), ONGC (Share traded: 90 lakh) and ITC (Share traded: 78 lakh) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of Orient Refractories, Rashtriya Chemicals & Fertilizers, HUDCO, PNB, Aegis Logistics, Canara Bank and IIFL Finance witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

    Stocks seeing selling pressure
    Shares of Olectra Greentech, Paytm, Avanti Feeds, Delhivery, Quess Corp, Amber Enterprises, Sona BLW Precision Forgings witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.

    Sentiment meter favours bulls
    Overall, market breadth favoured bulls as 1,850 stocks ended in the green zone, while 1,647 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)



    (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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