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

    Synopsis

    We expect the market to remain in consolidation mode for the next few days until the US Fed rate action is over. However, intermittent volatility may not be ruled out due to adverse global cues.That said, here’s a look at what some key indicators are suggesting for Friday’s action

    Ahead of MarketAgencies
    Indian shares continued their losing-run for a second session on Thursday as fears of a large Fed rate hike dampened sentiments across markets. The Nifty ended below the 18,000 mark while Bank Nifty, which outperformed in the previous session, witnessed some profit-booking and ended with cuts.

    Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, “After showing a sharp upside bounce from the intraday lows on Wednesday, Nifty slipped into weakness amidst volatility and closed the day lower by 126 points. After opening with a positive note, the market failed to sustain the gains at the hurdle of 18,100 levels and turned weak in the early-mid part of the session. Intraday volatility was seen on the day of weekly F&O expiry, and the market closed near the lows”.

    Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, believes the markets are becoming nervous around the 18K mark and are unable to sustain gains made on Wednesday. Nifty needs to sustain above 17,700-17,800 zones for the overall setup to remain positive. We expect the market to remain in consolidation mode for the next few days until the US Fed rate action is over. However, intermittent volatility may not be ruled out due to adverse global cues.

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

    US stocks edge higher after data
    Wall Street stocks edged up early Thursday following mixed economic data as markets largely shrugged off the apparent aversion of a major freight rail strike.

    About 25 minutes into trading, the Dow Jones Industrial Average was up 0.3 percent at 31,212.31.

    The broad-based S&P 500 edged up 0.1 percent to 3,948.62, while the tech-rich Nasdaq Composite Index added less than 0.1 percent at 11,723.71.

    European stocks fend off rate risks
    European markets were choppy on Thursday, while banking stocks maintained strong gains. The pan-European Stoxx 600 fell 0.72% mid-afternoon in London, after flipping between mild losses and gains during the morning.

    Tech View: Long negative candle
    A long negative candle on the daily chart engulfed Wednesday's long bull candle. Technically, this market action signals the emergence of selling pressure at the resistance of 18,100 levels. The Nifty is expected to find support around 17,750-17,700 in the short term.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Power Grid, IDBI Bank, Aditya Birla Capital, and Delta Corp, among others.

    The MACD is known for signalling 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 HUDCO, NBCC, TVS Motor, Texmaco Rail and Cipla, among others. A bearish crossover on MACD on these counters indicated that they had just begun their downward journey.

    Most active stocks in value terms
    Vedanta (Rs 2282 crore), Ambuja Cements (Rs 1997 crore), Infosys (Rs 1,844 crore), Adani Enterprises (Rs 1735 crore) and ICICI Bank (Rs 1500 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
    JP Power (Shares traded: 10,71 crore), IDFC First Bank (Shares traded: 9.14 crore), Zomato (Shares traded: 8.81 crore), YES Bank (Shares traded: 8.15 crore) and Vodafone Idea (Shares traded: 7.81 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of Ceat, Welspun Corp, MRF, Shoppers Stop, Apollo Tyre, and Kalyan Jewellers were among stocks that witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

    Stocks seeing selling pressure
    Shares of Piramal Enterprises, Alembic Pharma and Sanofi India witnessed strong selling pressure and hit its new 52-week lows, signaling bearish sentiment on the counters.

    Sentiment meter favours bulls
    Overall, market breadth favoured losers as 1,859 stocks ended in the red, while 1,639 stocks advanced.


    (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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