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

    Synopsis

    Nifty on Thursday ended 46 points lower to form a small green candle with an upper shadow on the daily chart and signalled buying interest at lower levels. Put writers were seen strengthening their position at 19,500 strike. If the index weakens further, it can find support around 19480-19450 levels and any upside bounce from here could encounter resistance around 19700 levels, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

    Ahead of marketiStock
    Indian equity indices fell on Thursday, tracking a selloff in global stocks on worries over escalating tensions in the Middle East, while earnings-driven gains in key Nifty 50 constituents limited the losses.

    The NSE Nifty 50 index settled 0.24% lower at 19,624, and the S&P BSE Sensex fell 0.38% to 65,629.

    Here's how analysts read the market pulse:

    "Nifty is trading near the 50-day SMA (Simple Moving Average). For the traders now, the 50-day SMA or 19625 would act as a trend decider level. Above the same, we could see a technical bounce back till 19700-19735 levels. On the flip side, below 19625 the index could retest the level of 19520-19480," said Shrikant Chouhan, Head of Research (Retail) at Kotak Securities.

    Rupak De, Senior Technical analyst at LKP Securities, said, "Nifty slipped below the consolidation range low of 19,650 and closed below it for the day. However, the 55EMA acted as a support on a closing basis. In the short term, the index might remain volatile, and a move above 19,650 could take the index towards 19,850. However, a failure to move above 19,650 might result in selling pressure once again."

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

    US market

    Wall Street struggled for gains and benchmark U.S. Treasuries reached a new 16-year high as market participants looked ahead to U.S. Federal Reserve Chairman Jerome Powell's impending remarks against a backdrop of solid earnings, mixed economic data and simmering geopolitical tensions.

    The three major U.S. stock indexes were mixed but trending lower, with interest-rate sensitive momentum stocks keeping the Nasdaq afloat, while the S&P 500 and the blue-chip Dow dipped into the red.

    The Dow Jones Industrial Average fell 151.2 points, or 0.45%, to 33,513.88, the S&P 500 lost 11.56 points, or 0.27%, to 4,303.04 and the Nasdaq Composite added 5.10 points, or 0.04%, to 13,319.40.

    European shares
    European shares tumbled on Thursday as a raft of dismal corporate earnings, including from packaged food giant Nestle, worsened an already risk-averse mood, driven by jitters around the Middle East war and uncertainty over interest rates.

    The pan-European STOXX 600 fell 1% to hit nearly a two-week low by 0839 GMT, in a broad-based selloff, led by automakers and rate-sensitive real estate firms .

    Geopolitical tensions continued to mount with anti-Israel protests flaring across the Middle East, while U.S. Treasury yields jumped to multi-year highs ahead of commentary by Federal Reserve Chair Jerome Powell due at 1600 GMT.

    Tech View: Small green candle

    Nifty on Thursday ended 46 points lower to form a small green candle with an upper shadow on the daily chart and signalled buying interest at lower levels. Put writers were seen strengthening their position at 19,500 strike.

    If the index weakens further, it can find support around 19480-19450 levels and any upside bounce from here could encounter resistance around 19700 levels. A decisive break above this hurdle could pull Nifty towards another hurdle of 19850 levels, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Bajaj Auto, Crisil, IRB Infrastructure Developers, Sun Pharma Advanced Research, HLE Glasscoat, and New India Assurance 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 KSB, Infibeam Avenues, Jyothy Labs, IndusInd Bank, Kaynes Technology India, and Indus Towers 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 2,294 crore), IndusInd Bank (Rs 2,018 crore), Bajaj Auto (Rs 1,531 crore), RIL (Rs 1,389 crore), Infosys (Rs 975 crore), LTIMindtree (Rs 974 crore), and Bajaj Finance (Rs 830 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 (Shares traded: 3 crore), HDFC Bank (Shares traded: 1.5 crore), IndusInd Bank (Shares traded: 1.4 crore), Power Grid (Shares traded: 1.3 crore), Wipro (Shares traded: 1.2 crore), NTPC (Shares traded: 1.1 crore), and SBI (Shares traded: 1.1 crore) were among the most traded stocks in the session on NSE.

    Stocks showing buying interest
    Shares of Bajaj Auto, Nestle India, Hero MotoCorp, Tata Motors, Maruti Suzuki, Power Grid, and Coal India 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 Delta Corp, V Mart Retail, Navin Fluorine and Adani Gas hit their 52-week lows, signaling bearish sentiment on the counters.

    Sentiment meter favours bears
    Overall, market breadth favoured bulls as 1,851 stocks ended in the green, while 1,843 names settled in the red.

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    (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, 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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