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

Equity benchmark indices Sensex and Nifty ticked higher to scale fresh all-time high levels on Thursday, following buying in market heavyweights amid a largely positive trend in global equities.

Here's how analysts the market pulse:
"Technically, the 24,250 zone showed signs of resilience, which could be seen as an intermediate obstacle for the bulls to overcome. On the lower end, the pivotal level of 24,000 still holds significant importance, and a decisive breach could trigger some correction in the near future, with immediate downside support at 23,800," said Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One.

"The higher-end resistance is placed at 24,500, where the highest open interest is built up on the call side. A break above this mark will likely see a fresh move on the upside. The lower-end support is at the 24200-24150 zone, and a decisive break below this level could lead to further selling pressure towards the 24,000-23,800 mark," said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

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

US market
Wall Street remained closed on Thursday, July 4, in observance of Independence Day.

European shares
European shares rose on Thursday amid optimism around U.S. interest rate cuts following soft economic data, while London markets gained as voting began in the UK with opinion polls predicting a historic win for the Labour party.

The pan-European STOXX 600 index rose 0.4% by 0816 GMT, led by a 1.3% rise in the automobiles and parts sub-index .

The sub-index was powered by German automotive supplier Continental, whose shares jumped 10.1% to a three-week high, with a trader pointing to pre-close comments on the auto unit.

The UK's FTSE 100 advanced 0.7%, with markets waiting to see how large a majority the Labour Party might win.

Tech View
The overall trend of Nifty remains positive as per smaller to larger time frame chart. Having placed at the hurdle of around 24,400 levels (1.618% Fibonacci Extension), there is a possibility of this consolidation/minor dip extending for the coming sessions. Immediate support is at 10 day-EMA at 23,990, said Nagaraj Shetti of HDFC Securities.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of AstraZeneca, Cochin Shipyard, Hudco, Linde India, HFCL, Cadila Healthcare 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 Century Ply, Nuvoco Vistas, SRF, Ratnamani Metal, Caplin Point, Global Health among others. Bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks in value terms
Mazagon Dock (Rs 10,841 crore), HDFC Bank (Rs 3,977 crore), Cochin Shipyard (Rs 3,396 crore), Hudco (Rs 2,887 crore), GRSE (Rs 2,810 crore), NBCC (Rs 2,604 crore), and HAL (Rs 2,065 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
Vodafone Idea (Shares traded: 64 crore), YES Bank (Shares traded: 14.9 crore), NBCC (Shares traded: 14.4 crore), Hudco (Shares traded: 9 crore), Inox Wind (Shares traded: 8.4 crore), NHPC (Shares traded: 8.1 crore), and HFCL (Shares traded: 8.1 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Mazagon Dock, Astrazeneca, NBCC, Cochin Shipyard, GRSE, Concord Biotech, Lupin witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure
Shares of no companies hit their 52-week lows on Thursday.

Sentiment meter favours bulls
Overall, market breadth favoured bulls as 2,117 stocks ended in the green, while 1,821 names settled in the red.

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