nifty50: Ahead of Market: 12 things that will decide stock action on Friday
Here’s how analysts read the pulse of the market:
Nifty50 is trading above the 20 day moving average and other indicators such as MACD are in buy mode. The likelihood of a good uptrend move is a high probability of occurrence, independent analyst Manish Shah said.
Mazhar Mohammad of Chartviewindia.in said the indecisive formations at the upper limit of a downslope channel indicate that the Nifty is preparing for a decisive move in either direction.
That said, here’s a look at what some of the key indicators suggest for Friday’s action:
Wall Street wants to build on records
The Dow Jones Industrial Average and the S&P 500 are both on track for new record closes early Thursday, as a drop in weekly jobless claims has yet to show any employment impact from the surge in coronavirus infections. in the USA. The Dow Jones Industrial Average gained around 65 points, or 0.2%. The S&P 500 rose 0.2%. The Nasdaq Composite rose 0.5% at the start of the session
With this, the Dow blue chip is on track for a seventh straight day of gains. The DJI last increased seven days in a row in March of this year. He won eight consecutive days for the last time in late July / early August 2020.
European equities on the rise in year-end trading
European stock markets edged higher on Thursday in the calm of year-end trading as the Omicron variant dominated sentiment. The pan-European STOXX 600 index rose 0.31%. Data showed that a record number of companies debuted on the Euronext index in 2021, with the pan-European exchange benefiting from Brexit and adding Milan to the group. Euronext said 212 companies were newly listed this year for a total market capitalization of 123 billion euros ($ 139 billion), but it did not say how many were delisted.
Tech View: Decisive Blow to the Anvil
With the benchmark struggling for two sessions around the 17,200 mark, analysts believe the index is about to give a decisive move up or down. On the upside, the 17,300 mark remains a key resistance as 17,100 must be held to avoid a further period of correction, analysts said.
F&O: probable lateral movement
In the derivatives segment, traders have sold both non-money put and call options on the Nifty50 index, indicating that they remain undecided on the future course of the benchmark.
Stocks showing a bullish bias
The Moving Average Convergence Divergence (MACD) momentum indicator showed a bullish trade pattern on the counters of Zee Learn, ONGC, Poonawalla Fincorp, Oil India, Bharti Airtel and Take Solutions.
The MACD is known to signal trend reversals of securities or indices traded. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may experience an upward movement and vice versa.
Stocks signal weakness ahead
The MACD showed bearish signs on the counters of NALCO, Future Consumers, Mirc Electronics, IMP Powers and Rushil Decors. A bearish cross on the MACD on these counters indicated that they had just started their downward journey.
Most active stocks in terms of value
RIL (Rs 3,204 crore), Power Grid (Rs 1,346 crore), SBI (Rs 1,304 crore), RBL Bank (Rs 1,294 crore), IndusInd Bank (Rs 1,090 crore) and ICICI Bank (Rs 1,054 crore) ) were among the most active stocks on Dalal Street in terms of value. Higher activity on a meter in terms of value can help identify meters with the highest turnover for the day.
Most active stocks in terms of volume
Vodafone Idea (shares traded: 39.6 crore), RBL Bank (shares traded: 9.7 crore), YES Bank (shares traded: 7.7 crore), PNB (shares traded: 7.0 crore), Power Grid ( shares traded: 6.6 crore) and Suzlon Energy (shares traded: 6.6 crore) was one of the most traded stocks during the session.
Stocks showing buying interest
Anupam Rasayan, Tata Tele, KPIT Tech, Suzlon Energy, Persistent Systems and Krishna Institute witnessed strong buying interest from market participants as they increased their new 52 week highs, signaling sentiment bullish.
Stocks see the pressure to sell
RBL Bank, Jet Fright Logistics and Lumax Industries saw strong selling pressure and hit their 52 week lows, signaling bearish sentiment on these meters.
The sentiment counter favors bears
Overall, the breadth of the market was in favor of the losers, as 189 stocks finished in the green on the BSE500 index, while 311 names settled with cuts.