The Nifty 50 index fell 0.21 per cent to 25,145 points and the S&P BSE Sensex declined 0.18 per cent to 82,201. Both the indices fell for the second consecutive trading day after record gains.
Analysts are predicting the market trends as follows:
“Sentiments remain unclear as the index remained within the range of 25,100-25,200. Going forward, no clear directional trend may emerge as long as the index remains within this range. A decisive move above 25,200 can push the index towards 25,350/25,500. The lower support lies at 25,080/24,950,” said Rupak De of LKP Securities.
Jatin Gedia, Sharekhan, said, “The daily chart shows that the price structure is weakening after the gap down in the previous trading session. The uptrend is still intact but is likely to consolidate within the range of 25000-25350 in the next few trading sessions. Any dip towards the support zone of 25100-25050 should be utilised as a buying opportunity. On the upside, 25300-25350 are the immediate hurdles.”
That said, let’s take a look at what some key indicators suggest for Friday’s moves: US Market:
The Nasdaq and S&P 500 rose modestly on Thursday after a services activities survey eased concerns about an economic slowdown. The Institute for Supply Management reported that services sector activity rose to 51.5 in August, beating expectations. Attention remains on an expected Federal Reserve interest rate cut later this month. Traders currently see a 55% chance of a 25 basis point cut, with 45% betting on a 50 basis point cut. At the open, the Dow was down 0.03%, while the S&P 500 and Nasdaq were up 0.28% and 0.83%, respectively.
European stocks:
Europe’s main stock indexes fell to their lowest in two weeks as technology shares fell on concerns about a slowing U.S. economy and a weakening China. The pan-European STOXX 600 index fell 1%, while major regional markets were down between 0.5% and 1%.
The Stoxx Volatility Index surged to its highest level since Aug. 9. Technology stocks led the decline, dropping more than 3% to its lowest in nearly a month, reflecting Wall Street’s sell-off in tech stocks after disappointing economic data.
Technical Perspective: Small Red Candle
Nifty formed a small red candlestick on the daily chart and ended the trading session on Thursday on a slightly negative note. The index started higher but could not sustain it and fell from the highs, losing 53.60 points to close at 25,145.
The short-term trend for Nifty remains choppy with a bearish bias. Any further weakness from here could find key downside support near 25,000-24,900 levels following which we may see a sustainable upside bounce from the lows again. Nagaraj Shetty, HDFC Securities, said the immediate resistance lies at 25,300.
In the open interest (OI) data, the highest OI was observed at strike prices of 25,200 and 25,150 on the call side, while the highest OI was observed at strike price of 25,150 on the put side.
Stocks exhibiting a bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) indicated bullish trading in stocks like Venky’s, Ethos, Cholamandalam Financial Holdings, Suven Pharma, Asian Paints, Sun Pharma, Anant Raj and TTK Healthcare.
The MACD is known to signal trend reversals in the securities and indices being traded. When the MACD rises above its signal line, it signals a bullish trend, indicating that the security’s price may rise, and vice versa.
Stock prices signal weakness going forward:
MACD has shown bearish signs in stocks like Trent, Dixon Technologies, Page Industries, Power Mech Projects, VST Industries, PB Fintech etc. The bearish crossover of MACD in these stocks indicates that the downward trend has just begun.
Most Active Stocks by Value:
Zomato (Rs 2,944 crore), Max Financial (Rs 2,749 crore), RIL (Rs 2,445 crore), Mazagon Docks (Rs 2,243 crore), HDFC Bank (Rs 1,882 crore), Titan Company (Rs 1,275 crore) and GMR Infrastructure (Rs 1,166 crore) were among the most active stocks in terms of value traded on the NSE. Stocks with high volume traded in terms of value traded help identify stocks with the highest trading volume for the day.
Most active stocks by trading volume:
Vodafone Idea (shares traded: 286 million), GMR Infrastructure (shares traded: 123 million), Zomato (shares traded: 115 million), Easy Trip Planners (shares traded: 160 million), JM Financial (shares traded: 760 million), Suzlon Energy (shares traded: 560 million) and YES Bank (shares traded: 560 million) were among the most traded stocks during the session on NSE.
Stocks showing buying interest:
Stocks like Caplin Point, UTI AMC, KEC International, Cholamandalam Financial Holdings, Vijaya Diagnostic, Avenue Supermart and Concord Biotech rose to their highest 52-week levels, indicating bullish sentiment and strong buying interest from market participants.
Stocks seeing selling pressure:
None of the major stocks hit 52-week lows on Thursday.
Sentiment Meter Favors Bulls:
Overall, the market expanded in favor of bulls with 2,249 stocks declining and 1,679 stocks declining.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not represent the views of The Economic Times)
