Here’s how analysts read the market pulse:
“We feel the prevailing consolidation may continue in the index citing mixed indications. While there’s no shortage of trading opportunities, traders should focus more on handling intermediate volatility. Besides, the focus should be on sectors/stocks which are showing consistency in their trend instead of betting on laggards. To reclaim positivity and momentum, we need a decisive close above 18,400 in Nifty and 44,000 in the banking index,” said Ajit Mishra, VP – Technical Research, Religare Broking.
“Nifty remained volatile during the day, but found support at the 18,200 level before moving higher. The RSI is in bullish crossover on the lower timeframe, which suggests that the momentum is in favor of the bulls. On the higher end, resistance is seen at 18,500. Support is seen at 18,200. Overall, the outlook for the market is positive, but there is still some volatility to be expected. Traders should take profits on rallies and look for opportunities to buy on dips,” said Rupak De, Senior Technical at LKP Securities
That said, here’s a look at what some key indicators are suggesting for Friday’s action:
US market
The tech-heavy Nasdaq led Wall Street gains on Thursday as Nvidia shares soared on a blowout forecast that also lifted other AI-related companies, while investors watched for signs of progress in U.S. debt ceiling talks.
Shares of Nvidia Corp, the world’s most valuable listed chip company, jumped 25.5% to hit a record high, after it forecast quarterly revenue 50% higher than Wall Street estimates and said it was ramping up supply to meet demand for its artificial-intelligence chips.
At 10:03 a.m. ET, the Dow Jones Industrial Average was down 37.98 points, or 0.12%, at 32,761.94, the S&P 500 was up 23.37 points, or 0.57%, at 4,138.61, and the Nasdaq Composite was up 159.10 points, or 1.27%, at 12,643.26.
European shares
A rally in semiconductor companies led European tech stocks higher on Thursday as investors reacted to strong numbers and a ramp up in supply of artificial intelligence chips at Nvidia in the United States. The STOXX Europe 600 Technology index rose 1.8% by 0722 GMT, leading sectoral gainers in the region. ASM International, BE Semiconductor and ASML Holding led the advance, all up more than 5%.
Tech View: Bullish candle with a longer lower shadow
Nifty is in a consolidation mode and the range of consolidation is likely to be 18000 – 18400. In terms of levels, 18420 – 18450 shall act as the immediate hurdle, while 18200 – 18180 is the crucial support zone to watch out for on the downside.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Ingersoll-Rand, Engineers India, Indian Hotels, Apollo Tyres, United Breweries, Affle (India), 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 Jubilant Food, Lakshmi Machine, Lemon Tree Hotels, InterGlobe and Century Ply 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 2,391 crore), Adani Enterprises (Rs 2083 crore), ICICI Bank (Rs 1,812 crore), RIL (Rs 1288 crore), and HDFC (Rs 1241 crore), Kotak Bank (Rs 1,146 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: 2.58 crore), ICICI Bank (Shares traded: 1.93 crore), ITC (Shares traded: 1.82 crore), SBI (Shares traded: 1.64 crore) and HDFC Bank (Shares traded: 1.48 crore), Tata Motors (Shares traded: 1.15 crore), Bharti Airtel (95 lakh) among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of Aster DM Health, KPIT Tech, Ceat, IDFC, Global Health, Chalet Hotels, Balkrishna Ind, among others, witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure
No stocks hit their 52-week lows for today, signaling bearish sentiment on the counters.
Sentiment meter favours bears
Overall, market breadth favoured bulls as 1,802 stocks ended in the green, while 1,687 names settled with losses.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
