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market outlook: Ahead of Market: 10 things that will decide D-Street action on Friday

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market outlook: Ahead of Market: 10 things that will decide D-Street action on Friday


NEW DELHI: Indian stocks were under pressure for the fourth consecutive day as investors remained cautious with US inflation inching up further in June and the risk of a sharper rate hike by the Federal Reserve. Nifty opened with minor gains but failed to sustain above 16,000 levels on the back of profit booking.

Here’s how analysts read the market pulse:

Ruchit Jain, Lead Research, 5paisa.com, said Nifty has corrected gradually in the last few sessions from its swing high of 16,250 and has now reached its important support zone. The immediate support for Nifty is placed in the range of 15,850-15,800 while resistance will be seen around 16,250, he said.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the short-term trend of the Nifty continues to be negative. “The overall chart pattern and the placement of key lower support are signalling an upside bounce from near 15,800 levels in the next 1- 2 sessions. The confirmation of upside reversal could unfold the quantum of upside bounce in the market.”

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

Wall Street down more than 1%

Stocks fell broadly in morning trading on Wall Street Thursday after another hot reading on inflation had investors bracing for another big interest rate hike from the Federal Reserve later this month.

The S&P 500 fell 2% as of 10:19 am Eastern. More than 95% of companies in the benchmark index were in the red. The Dow Jones Industrial Average fell 604 points, or 2%, to 30.163 and the Nasdaq fell 2.1% .

Banks were among the big losers. JPMorgan Chase fell 4.6% after reporting a sharp drop in earnings for its latest quarter, falling short of forecasts.

Another drop in crude oil prices, a signal that investors expect slower economic growth, was weighing on energy companies. US crude oil prices fell 4.8% and Exxon Mobil fell 4.1%.

European markets close lower European stocks closed lower on Thursday as investors worried about the prospect of a more aggressive stance by major central banks to curb inflation, with a slew of worrying forecasts from companies and weak commodity prices also hurting sentiment.

The pan-European Stoxx 600 index was down 1.4% by the end of the session. The blue-chip FTSE 100 slid 1.6%, while the domestically oriented FTSE 120 index declined 1.2%.

Tech View: Bearish candle for 3rd day Nifty50 formed a bearish candle, the third in a row, on the daily chart. It made a lower-high lower-low for the fourth straight session. Analysts said the level of 15,800 may offer some support to the index, failing which the ongoing weakness may intensify.

Stocks showing bullish bias Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Bharat Forge and

.

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 aheadThe MACD showed bearish signs on the counters of

, , , REC and Infosys.

Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value termsRIL (Rs 1,878 crore), TCS (Rs 1,432 crore),

(Rs 1,160 crore), Infosys (Rs 883 crore), (Rs 730 crore), and (Rs 705 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 the highest trading turnovers in the day.

Most active stocks in volume terms ONGC (Shares traded: 3.8 crore), ITC (Shares traded: 1.3 crore), Bharti Airtel (Shares traded: 1.1 crore),

(Shares traded: 1 crore), NTPC (Shares traded: 1 crore) and (Shares traded: 0.9 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interestShares of

witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressureShares of

NMDC, , , TCS, Wipro and witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bears Overall, market breadth favoured losers as 1,299 stocks ended in the green, while 2,023 names settled with cuts.

(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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