Here’s how analysts read the market pulse:
“Inflation concerns have resurfaced in the domestic market after the RBI elevated their CPI forecast by 30 basis points to 5.4%, thereby increasing the chances of a protracted rate cut trajectory. Furthermore, the RBI’s move to control liquidity through incremental CRR dented the sentiments of the banking sector, although the impact is projected to be limited. Against this backdrop, investors will be closely watching the US inflation print today (Thursday) and the domestic inflation data on Monday,” Vinod Nair, Head of Research at Geojit Financial Services, said.
“Technically, the index continues to hover near the 20-day SMA with no significant change in the chart structure, portraying a lack of conviction by both counterparties. Structurally, the setup remains unchanged, suggesting further consolidation in the index and continuing the time-wise corrective phase. On the levels front, the bearish gap of 19678-19705 withholds the sturdy hurdle, and on the lower end, 19500-19440-19380 holds the pivotal support for Nifty in the comparable period,” said Osho Krishan of Angel One.
That said, here’s a look at what some key indicators are suggesting for Friday’s action:
US market
Wall Street rose on Thursday after milder-than-feared July consumer prices data fueled hopes the Federal Reserve could leave interest rates unchanged next month.
The consumer price index (CPI) for July climbed 3.2% on an annual basis, less than the 3.3% rise expected by economists.
At 09:40 a.m. ET, the Dow Jones Industrial Average was up 335.30 points, or 0.95%, at 35,458.66, the S&P 500 was up 40.72 points, or 0.91%, at 4,508.43, and the Nasdaq Composite was up 143.56 points, or 1.05%, at 13,865.58.
All of the 11 major S&P 500 sectors advanced, with the communication services sector housing Meta Platforms and Alphabet leading gains, up 1.2%.
European shares
European stocks rose on Thursday as investors digested a slew of corporate earnings and awaited U.S. inflation print that will likely determine the Federal Reserve’s monetary policy path.
The pan-European STOXX 600 added 0.4% by 0707 GMT, having closed at a one-week high in the previous session.
Tech View: Small negative candle
A small negative candle was formed on the daily chart with minor upper and lower shadows. Technically, this pattern indicates sideways movement in the market with a weak bias at the crucial resistance of 19,650 levels. The repeated testing of the hurdle without showing any sharp weakness could eventually result in an upside breakout of the said resistance.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Dish TV, Zee Entertainment, TV18 Broadcast, IOB, and ONGC, 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 CESC, Greaves Cotton, Rama Steel Tubes, and Graphite India, among others. A 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 4161 crore), Tata Motors (Rs 3216 crore), Zee Entertainment (Rs 3015 crore), ICICI Bank (Rs 2399 crore), and Adani Enterprises (Rs 2075 crore) among others 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
Suzlon Energy (Shares traded: 19.85 crore), YES Bank (Shares traded: 17.08 crore), Reliance Power (Shares traded: 12.64 crore), Vodafone Idea (Shares traded: 11.54 crore), and Zee Entertainment (Shares traded: 11.4 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of Zee Entertainment, Jubilant Pharmova, Max Financial, Safari Industries, and Trent 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 NIIT Learning System, Vinny Overseas, Reliance Home Finance, and BKM Industries among others were stocks that hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bulls
Overall, market breadth favored bulls as 1,994 stocks ended in the green, while 1,613 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)
