Here’s how analysts read the market pulse:
Rohit Singre of LKP Securities said Nifty50 failed to cross above its immediate swing of 17,440 and the level would now act as immediate resistance for the index. “Support for the index can be seen in the 17,300-17,250 range. Traders can use this range as trailing stop loss levels,” he said.
Mazhar Mohammad of Chartviewindia.in said that even as the bulls were making attempts to come back with intraday recoveries, they looked indecisive for the third session in a row. “Unless a strong close is registered above 17436-level, further strength shall not be expected,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Thursday’s action:
Wall St slips over fear of slowing growth
Wall Street dipped on Wednesday on concerns that the spread of the Delta coronavirus variant could slow economic growth and on uncertainty over the timeline for the Federal Reserve to pull back its accommodative policies. At 10:17 a.m. ET, the Dow Jones Industrial Average was down 11.74 points, or 0.03 per cent, at 35,088.26, the S&P 500 was down 2.96 points, or 0.07 per cent, at 4,517.07, and the Nasdaq Composite was down 43.66 points, or 0.28 per cent, at 15,330.67.
European shares fall further
London’s FTSE 100 slipped for a second session on Wednesday. The blue-chip FTSE 100 index ended 0.7 per cent down, as pharmaceutical stocks weighed with drugmakers AstraZeneca and GlaxoSmithKline among top drags. Broader Eurozone index, Stoxx 600 ended 1 per cent lower.
Tech View: Nifty enters consolidation phase
Nifty50 on Wednesday formed a ‘Hanging Man’ candle on the daily chart. This was in addition to the back-to-back indecisive candles that it made in the previous two sessions. Analysts said the NSE barometer has entered a consolidation phase and any fall below the 17,250-300 range may send initial signs of weakness.
F&O: India VIX needs to hold below 13-level
India VIX fell 3.29 per cent from 14.89 to 14.41 level. It needs to hold below the 13-level for the bullish momentum to continue. Options data suggested a broader trading range between 17,000 and 17,800 levels and an immediate trading range between 17,200 and 17,500 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Steel Authority, Rattan India Power, IndusInd Bank, Filatex India, Hindustan Oil Exploration, Elecon Engineering, Allcargo Logistics, JSW Energy, Vidhi Specialty Food, JM Financial, Gufic BioSciences, Vardhman Acrylics, RPP Infra Projects, Goldiam International, Central Depository, Olectra Greentech, Nagarjuna Fertilizer, Quess Corp, Gokaldas Exports, West Coast Paper, Ruby Mills, Sakuma Exports, Nitin Spinners, The Hi-Tech Gears, MMP Industries, Rajesh Exports, Apar Industries, TCI, VIP Clothing, Mold-Tek Packaging, Aditya Birla Money, Ravi Kumar Distiller, Xelpmoc Design, Geekay Wires, Dhunseri Tea and GKW.
The MACD is known for signalling 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 Happiest Minds Tech, KNR Constructions, Syngene International, Coforge, Websol Energy System, Bajaj Finserv, Relaxo Footwears, Indoco Remedies, North Eastern Carry, Tata Elxsi, Rossari Biotech, Westlife Development, Krebs Biochemicals, Jocil and Tasty Bite. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
IRCTC (Rs 2962.97 crore), Kotak Bank (Rs 2747.82 crore), Info Edge (Rs 1814.78 crore), RIL (Rs 1603.32 crore), TCS (Rs 1575.12 crore), Bharti Airtel (Rs 1380.74 crore), Vodafone Idea (Rs 1128.70 crore), SBI (Rs 986.49 crore), Infosys (Rs 776.23 crore) and Indian Energy Exchange (Rs 740.46 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: 134.05 crore), YES Bank (Shares traded: 14.65 crore), IDFC First Bank (Shares traded: 4.90 crore), PNB (Shares traded: 4.71 crore), GTL Infra (Shares traded: 4.04 crore), Trident (Shares traded: 3.95 crore), NALCO (Shares traded: 3.44 crore), Alok Industries (Shares traded: 3.08 crore), Bank of Baroda (Shares traded: 2.88 crore) and Zomato (Shares traded: 2.81 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Info Edge, KEI Industries, Allcargo Logistics, Oil India and Saregama India witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Nandani Creation and Ujjivan Financial Services witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls
Overall, the market breadth remained in favour of the bulls. As many as 250 stocks on the BSE500 index settled the day in the green, while 246 settled the day in the red.
Podcast: Where to invest if the market corrects?
Domestic benchmark indices witnessed another volatile session but ended on a flat note. Traders were on their toes as sentiments turned jittery on global pessimism. BSE Sensex shed about 30-odd points to settle at 58,260. Nifty 50 retreated merely 9 points to close at above 17,350. Is the market indecisive at highs? Where should investors invest if the market falls from here?