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    Ahead of Market: 12 things that will decide stock action on Thursday

    Synopsis

    Nifty50 breaking below the level of 18,000 on a closing basis is a negative for the market

    Ahead of MarketiStock
    The bears seem to have gained the upper hand, said analysts
    NEW DELHI: Even though the broader market saw some buying, geopolitical tensions and rising oil prices hit the market sentiments hard on Wednesday. Weakness is likely to continue for a while, said analysts.

    Here's how analysts read the market pulse:-

    During the day, the index breached the 10-day exponential moving average (EMA) for the first time since December. Besides, two back-to-back significant red candles on the daily chart indicate weakness that could extend further in the near future, said Rupak De, Senior Technical Analyst at LKP Securities.

    Shrikant Chouhan of Kotak Securities said that Nifty50 breaking below the level of 18,000 on a closing basis is a negative for the market.

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

    US stock markets rise
    With easing Omicron virus concerns, Wall Street moved higher at the opening bell, recovering part of the ground Tuesday when it suffered sharp losses. The Dow added 0.2 per cent, the S&P 500 rose 0.4 per cent and the tech-heavy Nasdaq Composite climbed 0.6 per cent.

    European shares advance too
    London stocks won 0.5 per cent in afternoon trading as British Prime Minister Boris Johnson announced that most Covid restrictions would be lifted from next week.

    Paris stocks gained 0.8 per cent and Frankfurt added 0.6 per cent.

    Yields for 10-year German bonds rose above zero percent for the first time since May 2019, as surging inflation also prompted fears of monetary tightening in the eurozone.

    Tech View: Selling pressure
    After forming a Bearish Engulfing candle in the previous session, Nifty50 on Wednesday formed a 'Bearish Belt Hold' on the daily chart, reflecting selling pressure from the word go. The bears seem to have gained the upper hand, said analysts.

    F&O: Volatile moves ahead
    After another sharp fall, bears pressed further by adding more Put contracts at near the money strike price as open interest rose. At the same time, Call contracts also saw addition in open interest, giving hopes to bulls.

    Stocks showing bullish bias
    Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Siemens, BPL, Stove Kraft, Wabco India and CCL Products India.

    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 signalling weakness ahead
    The MACD showed bearish signs on the counters of Bharat Electronics, Rain Industries, Sun Pharma, HUL, Ashoka Buildcon and Ambuja Cements. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

    Most active stocks in value terms
    Bajaj Finance (Rs 3,871 crore), Tata Elxsi (Rs 1,948 crore), ICICI Bank (Rs 1,332 crore), TCS (Rs 1,222 crore), Vedanta (Rs 1,213 crore), Reliance Industries (Rs 1,136 crore) and Tata Motors (Rs 1,122 crore) were among the most active stocks on Dalal Street 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: 23 crore), Alok Industries (Shares traded: 12 crore), Suzlon Energy (Shares traded: 11 crore), YES Bank (Shares traded: 8 crore), TV18 Broadcast (Shares traded: 6 crore) and PNB (Shares traded: 5 crore) were among the most traded stocks in the session.

    Stocks showing buying interest
    Tata Elxsi, Elgi Equipments, Sobha, Lakshmi Machine, Chambal Fertilisers, Trent and Adani Green Energy witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

    Stocks seeing selling pressure
    Zydus Wellness, Indraprastha Gas, Spandana Sphoorty, Jubilant Life and Dilip Buildcon witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counter.

    Sentiment meter favours bears
    Overall, market breadth was in favour of losers as 1,579 stocks ended in the green, while 1,827 names settled with cuts.

    Podcast: How to navigate this turbulent market?
    Domestic equity markets extended their fall to the second session, thanks to weak geopolitical tensions and crude oil rise. The rise in inflation beyond expectations led to a spike in US bond yields, which further spooked traders. Investors lost more than Rs 5 lakh crore of their notional wealth in the two-day drop. FMCG, IT and financials were under pressure, whereas autos and metals saw some buying. The BSE barometer Sensex gyrated in a range of more than 920 points and finally settled 656 points lower. The index has shed about 1,230 points in the last two sessions. How should investors brace themselves to tide these tough times?






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    Read More News on

    (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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