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Here’s how analysts read the market pulse:
“Global markets are still grappling with the impact of the US rating downgrade, with spiking bond yield and strengthening dollar index. However, the pharma sector has managed to weather the storm — thanks to its strong earnings outcome, while mid- and small-cap stocks have outperformed the benchmark index,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Nifty slipped further as the bears continued to remain at the helm. The index fell sharply following a breakdown below 19500. However, 19300 acted as support on a sustained basis for the day. Going forward, 19300 may act as crucial support, while, on the higher end resistance is seen at 19500/19650,” said Rupak De, Senior Technical 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’s main indexes slipped on Thursday as a jump in bonds yields, a mixed bag of corporate earnings and a slew of economic data pointing to stubborn inflation kept investors on edge.
Market participants have been keeping a close watch on data as they fear the Federal Reserve may stick to its rate hike path if it fails to bring inflation within its targeted range.
At 10:08 a.m. ET, the Dow Jones Industrial Average was down 63.64 points, or 0.18%, at 35,218.88, the S&P 500 was down 15.69 points, or 0.35%, at 4,497.70, and the Nasdaq Composite was down 30.67 points, or 0.22%, at 13,942.78.European shares
European stocks hit a three-week low on Thursday, hurt by disappointing earnings reports, elevated U.S. bond yields and data pointing to slowing business activity in the euro zone.
The pan-European STOXX 600 index fell 0.9%, its third consecutive day of losses.
Stocks globally came under pressure as U.S. bonds yields hit nine-month peaks following strong private jobs data and the announced refunding of Washington’s maturing debt.
Tech View: Bearish candle with longer lower shadow
On the higher side, the market could move up till 19450-19500. On the flip side, below 19350, the selling pressure is likely to accelerate. Below which, the market could slip till 19300-19250.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Laurus Labs, Balaji Amines, Shoppers Stop, Indian Hotels, Meghmani Finechem, 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 Triveni Engineering, CE Infosystems, KEC International, CSB Bank, Shyam Metalics, 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 4,079 crore), ICICI Bank (Rs 3,002 crore), SBI (Rs 1,640 crore) and Axis Bank (Rs 1,598 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: 3.46 crore), ICICI Bank (Shares traded: 3.09 crore), NTPC (Shares traded: 2.98 crore), and HDFC Bank (Shares traded: 2.88 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of IRFC, Indiabulls Housing, FDC, Poonawalla Fincorp and IDBI Bank, among others, witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure
Shares of UPL and VIP Industries have hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bears
Overall, market breadth favoured bears as 1,847 stocks ended in red, while 1,716 names settled in green.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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