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

    Synopsis

    A triangle pattern was formed on the Nifty daily timeframe chart, with the market near the lower end of the pattern around 19,300 levels

    Ahead of Market: 10 things that will D-Street action on ThursdayiStock
    Indian equities concluded two days of gains with a downturn, driven by heavyweight stocks such as Reliance Industries and ITC. The Sensex closed 388 points lower at 65,151, while the Nifty dropped by 0.5%, equivalent to 100 points, to reach 19,360 levels. Among sectors, Nifty FMCG and Nifty Oil and Gas saw the most significant losses, while the PSU Bank and Consumer Durables sectors emerged as top gainers.

    Here's how analysts read the market pulse:
    "Weak global cues continued to impact the domestic market, leading to ongoing selling pressure. The release of Fed minutes revealed a divided stance among its members regarding the necessity of additional rate hikes, deviating from the previously expected rate pause. Concurrently, the Indian rupee experienced a decline due to the dollar index surpassing 103.5; however, potential intervention from the RBI offered some support. Furthermore, the rise in US bond yields is likely to restrict foreign investments into the Indian market, further affecting market dynamics," noted Vinod Nair, Head of Research at Geojit Financial Services.

    "Although Nifty has defended the 50-day EMA levels in recent times and closed above 19,300, the lack of strong follow-up action suggests ongoing choppiness and a consolidation range within 19,300-19,600," said Amit Trivedi, CMT, Technical Analyst - Institutional Equities at YES SECURITIES.

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

    US Market

    The S&P 500 and Dow rose on Thursday after upbeat results from Cisco, while investors assessed minutes of the US Federal Reserve's last policy meeting, which showed most officials held a hawkish view on interest rates.

    Cisco Systems gained 4.6% after the networking equipment maker's fourth-quarter results beat estimates, and its CEO talked up artificial intelligence opportunities. At 9:52 a.m. ET, the Dow Jones Industrial Average was up 66.38 points, or 0.19%, at 34,832.12, the S&P 500 was up 5.88 points, or 0.13%, at 4,410.21, and the Nasdaq Composite was down 11.51 points, or 0.09%, at 13,463.12.

    European Shares
    European shares slipped on Thursday as downbeat earnings and BAE Systems weighed, while investors were in risk-off mode after minutes from the U.S. Federal Reserve's July meeting hinted at rates remaining higher for longer.

    The pan-European STOXX 600 fell 0.4%, hitting a more than one-month low.

    BAE Systems shed 4.5% after Britain's largest defence company said it agreed to buy Ball Corp's aerospace assets for about $5.55 billion in cash.

    Europe's aerospace and defence sector dropped 1.3%.

    Adyen NV tumbled 22.6%, falling to the bottom of the STOXX 600 after the Dutch payments processor missed analyst estimates and its own ambitious first-half earnings targets. The industrial goods and services sector slumped 1.6%.

    Tech View: Triangle Pattern:
    A triangle pattern was formed on the Nifty daily timeframe chart, with the market near the lower end of the pattern around 19,300 levels. Upside recovery attempts from intraday lows were reversed on Thursday. The daily chart showed a negative pattern of lower tops and bottoms, and the market hasn't demonstrated any significant upside rebound so far.

    Stocks Showing Bullish Bias
    The Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Union Bank, Orient Paper, eMudhra, Piramal Enterprises, and Jai Corp, 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 Suzlon Energy, Zomato, IDBI Bank, IFCI, and LIC Housing, 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 4231 crore), ICICI Bank (Rs 2575 crore), Cochin Shipyard (Rs 2230 crore), Adani Enterprises (Rs 1913 crore), and RIL (Rs 1744 crore), among others, 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
    IRFC (Shares traded: 15.52 crore), Vodafone Idea (Shares traded: 13.96 crore), Suzlon Energy (Shares traded: 13.08 crore), YES Bank (Shares traded: 11 crore), and PNB (Shares traded: 8.65 crore), and among others, were among the most traded stocks in the session on NSE.

    Stocks Showing Buying Interest
    Shares of Apar Industries, J&K Bank, Apar Industries, Cochin Shipyard, and Latent View Analytics, among others, witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

    Stocks Seeing Selling Pressure
    Shares of Easy Trip Planners, Redtape Penta Gold, Accuracy Shipping, and BKM Industries, among others, hit their 52-week lows, signaling bearish sentiment on the counters.

    Sentiment Meter Favors Bears
    Overall, market breadth favored bears as 1,802 stocks ended in the red, while 1,784 names gained.

    (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times)



    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 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 .)

    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

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    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 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 .)

    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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