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

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

NEW DELHI: Nifty opened on a strong note, but after a see-saw session, the index closed in the red zone, snapping its 10-day winning streak. The 50-pack index formed a bearish candle on the daily chart.

According to Rohit Singre, Senior Technical Analyst at LKP Securities, “Going ahead, 14,040 will be good support. Any break below said levels can show some more cuts in the index and on the higher side, 14,180-14,230 zone will be strong resistance. Further upside will only be possible if the index managed to sustain the above said levels.”

“Market is experiencing volatility due to a weak Asian market and profit booking, owing to rich valuation. Banking stocks are supportive, led by good loan growth data for Q3, announced by key private banks. In the near term, the trend of the broad market will depend a lot on FII inflows, while stock-specific actions will be based on Q3 result, which is about to pick up,” said Vinod Nair, Head of Research at Geojit Financial Services.

That said here’s a look at what some of the key indicators are suggesting for Thursday’s action:
US stocks fall on prospects of Democrat-controlled Senate

Wall Street’s main indexes were trading mixed on Wednesday as the likelihood of Democrats gaining control of the Senate sparked fears of increased regulatory scrutiny of technology mega-caps. The Dow Jones Industrial Average was up 62.8 points, or 0.20%, at the open to 30,453.83. The S&P 500 fell 6.09 points, or 0.16%, to 3,720.77 and the Nasdaq Composite dropped 119.8 points, or 0.93%, to 12,699.84.

European shares inch up

European stocks edged higher on Wednesday, led by economically sensitive sectors such as banks and energy, as investors braced for a Democratic win in pivotal US Senate elections that could spur a bigger fiscal stimulus. The pan-European STOXX 600 index was up 1.38%, while UK’s FTSE 100 rose 3.58% and Germany’s DAX gained 1.51%.

Tech View: Nifty50 takes a breather
Nifty50 on Wednesday took a breather after rising in the last couple of sessions. The index formed a bearish candle on the daily scale with a long lower wick, suggesting that the bulls made an attempt to recoup losses. The daily technical chart suggested that the formation of higher highs on the index was intact for the 10th session. Analysts said the index has strong support in the 14,000-13,950 range. Unless this range is breached, Nifty outlook will remain positive, they said.

Check out the candlestick formations in the latest trading sessions


F&O: Volatility needs to cool down further
India VIX moved up 2.61 per cent from 20.46 to 20.99 level. Volatility needs to cool down below 20 level to support the bullish market setup and fuel the next rally with a higher market base. There was minor Call writing at strike prices 14,200 and 14,500, while Put writing was seen at 13,800 and 13,500 levels. Options data suggested a wider trading range between 13,700 and 14,500 levels, while the immediate trading range stood between 14,000 and 14,400 levels.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Wednesday showed bullish trade setup on the counters of GAIL (India), Reliance Industries, Hindalco Industries, MTNL, PC Jeweller, JM Financial, Indus Towers, IRCTC, Arvind Ltd, V-Guard, Emami, ICICI Prudential Life Insurance, Minda Corporation, Paramount Communication, Sutlej Textiles & Industries, Arvind Fashions, Mahanagar Gas, Tourism Finance Corporation of India, Satin Creditcare, Ester India, Compuage Infocom, Magma Fincorp, Welspun India, Amara Raja Batteries, Signet Industries, Indian Hume Pipe, Man Industries, Kirloskar Brothers, Mold-Tek Packaging, Shreyas Shipping, Liberty Shoes, BASF India, Lumax Auto Technologies, Mahindra Holidays, The Andhra Sugars, Rushil Decor, OM Metals Infraprojects, Albert David, BPL, Supreme Industries, Sagar Cements, Touchwood Entertainment, Thermax, Shah Alloys, Gujarat Leasing Finance, Mukand Engineers and Bannari Amman Sugars.

Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of DLF, NCC, Exide Industries, Snowman Logistics, Piramal Enterprises, Future Retail, Bodal Chemicals, Aptech, Can Fin Homes, EID Parry, Astra Microwave, Va Tech Wabag, KEC International, Star Paper Mills, Suven Pharmaceutical, Gokaldas Exports, 20 Microns, Sunteck Realty, Som Distilleries, CCL Products India, Pitti Engineering, Kopran, Zodiac Clothing, Dollar Industries, Simplex Infrastructure, Godrej Agrovet, PSP Projects, TV Today Network, Dynacons Systems, Shree Rama Newsprint, Krebs Biochemicals, Intense Technologies, IFB Industries, Finolex Industries, Nahar Poly Films, Andhra Paper, SML Isuzu, N R Agarwal Industries, Matrimony.com, South West Pinnacle, NDTV, Inspirisys Solutions, Ingersoll Rand, Agro Tech Foods, Kothari Products and Chembond Chemicals.

Wednesday’s most active stocks
RIL (Rs 4129.04 crore), Info Edge (Rs 2280.10 crore), Bajaj Finance (Rs 1824.89 crore), Bharti Airtel (Rs 1589.92 crore), HDFC Bank (Rs 1575.45 crore), ICICI Bank (Rs 1533.61 crore), Tata Motors (Rs 1473.19 crore), Axis Bank (Rs 1373.38 crore), Tata Steel (Rs 1343.91 crore) and RBL Bank (Rs 1293.54 crore) were among the most active stocks on Dalal Street on Wednesday in value terms.

Wednesday’s most active stocks in volume terms
Vodafone Idea (Shares traded: 37.47 crore), Trident (Shares traded: 27.02 crore), RattanIndia Power (Shares traded: 24.59 crore), PNB (Shares traded: 20.23 crore), YES Bank (Shares traded: 19.69 crore), IDFC First Bank (Shares traded: 8.07 crore), BHEL (Shares traded: 7.85 crore), Tata Motors (Shares traded: 7.56 crore), Rail Vikas Nigam (Shares traded: 6.68 crore) and SAIL (Shares traded: 5.66 crore) were among the most traded stocks in the session.

Stocks showing buying interest
Amber Enterprises, Hindustan Zinc, Vedanta, SBI Cards and Navin Fluorine witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Wednesday signalling bullish sentiment.

Stocks seeing selling pressure
Jump Networks; Vishal Fabrics and Antony Waste Handling Cell witnessed strong selling pressure in Wednesday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.

Sentiment meter favours bears
Overall, market breadth remained in favour of bears. As many as 195 stocks on the BSE 500 index settled the day in green, while 303 settled the day in red.

Podcast: How the US election uncertainty ended Sensex‘s 10-day winning run >>>
It was another day of an intraday fall on Wednesday. But unlike the previous few sessions, D-Street bulls this time failed to bring indices back into the black. Sensex snapped its 10-day winning streak by falling 264 points to settle at 48,174.06. Nifty settled the day below the psychological 14,150-mark. We caught up with Narendra Solanki of Anand Rathi Shares & Stock Brokers to understand why the market reacted the way it did on Wednesday.

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