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

MUMBAI: Nifty50 formed a small bullish candle on the daily chart on Thursday as it closed above the psychologically important level of 17,500 points.

Here’s how analysts read the market pulse:

Sachin Gupta of Choice Broking said that Nifty50 has pulled up with the support of the Lower Bollinger Band formation and that the Stochastic indicator has reversed from the oversold territory with positive crossover, indicating the bullish strength.

Mazhar Mohammad of said Thursday’s move was probably a blip and not a decisive move. “Nifty50 needs to sustain above 17,351 to continue sideways consolidation with positive bias. In that scenario, the initial hurdle can be 17,600 level,” he said.

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

Wall Street remains closed

US markets are closed on Thursday on the occasion to Thanksgiving Holiday, there will be no overnight cues from Wall Street.

European shares climb higher

Tech shares’ bounce carried European equities higher on Thursday, following similar gains in Asia and helped also by a small pullback in the dollar from a 17-month high. The pan-European STOXX 600 index was up almost half a percent as a 1 per cent tech sector gain offset the eighth straight fall in travel and leisure stocks.

Tech View: Resistance seen at 17,600

While the Nifty50 managed to avoid another day of losses, it still closed below its 5-day exponential moving average. Analysts said that the index could face resistance at 17,600-17,650 on the upside while it will find support at 17,350 points.

F&O: More sideways movement likely

In the derivatives segment, traders sold both out-of-money call and put options of the Nifty50 index today suggesting that they still remain indecisive about the direction of the market and expect more range-bound movement going ahead.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Zee Entertainment, Alok Industries, Indian Overseas Bank, Central Bank, and HFCL.

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 Maruti Suzuki India, Hindustan Aeronautics, McLeod Russell, Sterlite Technology, and MOIL. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms

RIL (Rs 4799 crore), One97 Communication (Rs 2340 crore), Latent View (Rs 1458 crore), Vedanta (Rs 1455 crore), ICICI Bank (Rs 1332 crore), Tata Power (Rs 1239 crore), Zee Entertainment (Rs 1041 crore), Apollo Hospitals (Rs 879 crore), IRCTC (Rs 782 crore) and Indiabulls Housing (Rs 781 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 the highest trading turnovers in the day.

Most active stocks in volume terms

Vodafone Idea (Shares traded: 59.5 crore), Tata Power (Shares traded: 5.2 crore), YES Bank (Shares traded: 4.9 crore), Zomato (Shares traded: 4.9 crore), PNB (Shares traded: 4.4 crore), Vedanta (Shares traded: 4.0 crore), Indiabulls Housing (Shares traded: 3.5 crore), SAIL (Shares traded: 3.3 crore), and Bank of Baroda (Shares traded: 3.1 crore) were among the most traded stocks in the session.

Stocks showing buying interest

Latent View, GSK Pharma, MTAR Technologies, FSN E-Commerce, Home First and TCI Express witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure

Hero MotoCorp, Colgate India, and Johnson Control witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on these counters.

Sentiment meter favours bulls

Overall, the market breadth remained in favour of the bulls. As many as 285 stocks on the BSE500 index settled the day in the green, while 215 settled the day in the red.

Podcast: What’s ailing the banking stocks?
The bulls were back on Dalal Street on Thursday, with two out of every three stocks on BSE ending higher. Stock-specific action was visible amid the expiry of November futures and options contracts. A 6 per cent surge in shares of Reliance Industries made up for the weakness in the banking pack, lifting the BSE Sensex 454 points for the day. Nifty ended the F&O expiry above the 17,500 level. ITC, Infosys, TechM and Kotak Mahindra Bank gained 1 per cent each. Private banks ICICI Bank, IndusInd Bank and Axis Bank fell up to 1.2 per cent. Banking is one space which isn’t performing. Why?

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