The Nifty 50 ended 0.32 per cent lower at 25,198 points while the S&P BSE Sensex fell 0.25 per cent to 82,352.
Analysts are predicting the market trends as follows:
“Technically, the daily chart is showing a bullish belt hold candle at the breakout point of the round bottom pattern, indicating strength. On the downside, the nine-day Exponential Moving Average (DEMA) is near 25,090. As long as the index remains above 25,000-25,100 levels, a ‘buy low’ strategy should be adopted. On the upside, the index may test 25,500-25,600 levels in the near future,” said Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates. Tejas Shah, Head of Technical Research, JM Financial & BlinkX said, “The key positive takeaway is that Nifty is above the psychological support level of 25,000 on a closing basis. The short-term moving averages are also below the price movement and should continue to support the index on the downside. On the downside, 25,175-200/25,078/24,950-25,000 are the three key supports and these levels can be used as tight trailing stops for the existing longs. On the higher side, immediate resistance for Nifty lies at 25,300-325 levels and the next key resistance zone is at 25,450-500 levels. Overall, the bulls should maintain dominance going forward.”
That said, let’s take a look at what some key indicators suggest for Thursday’s moves.
US Market:
Stocks rose on Wall Street on Wednesday, recovering from their worst performance in a month. The S&P 500 was up 0.4% in morning trading after a 2.1% drop the previous day. The Dow Jones Industrial Average rose 201 points, or 0.5%, to 41,135, while the Nasdaq was down 0.4% as of 11:08 a.m. Eastern time.
In other news, U.S. job openings unexpectedly fell in July, signaling a possible slowdown in hiring. The Labor Department reported 7.7 million job openings, down from 7.9 million in June and the lowest since January 2021. Job openings have been declining for the year from about 8.8 million in January. However, hiring increased last month, so the overall report was mixed.
European stocks:
Europe’s main stock indexes fell to their lowest in two weeks on Wednesday, with technology shares leading the decline on concerns that a slowing U.S. economy and weakness in the Chinese economy will have an impact on global markets.
The pan-European STOXX 600 index fell 1%, while major regional markets were down between 0.5% and 1%. The STOXX Volatility Index rose to its highest level since Aug. 9.
European tech stocks were hardest hit, falling more than 3% to their lowest in a month, after a sell-off in U.S. tech stocks was triggered by economic data that dampened market sentiment.
Technical Perspective: Bullish Rebound Candle
Though Nifty ended below 25,200, it formed a bullish rebound candle pattern on the daily chart, suggesting a buying opportunity on the market dip.
Nifty is currently sitting at a key cluster support near the 25,000 level (the ascending trend line and the 10-day EMA). Nagaraj Shetty of HDFC Securities said the daily chart is showing a bullish pattern of rising highs and rising lows.
“The short-term uptrend in Nifty is sustained and any consolidation or minor dip towards 25K levels is expected to provide buying opportunities. We expect Nifty to surge towards new all-time highs around 25,350-25,400 soon,” he said.
Open interest (OI) data shows that on the call side, OI was highest at the 25,300 and 25,500 strike prices, while on the put side, it was concentrated at the 25,000 strike price.
Stocks exhibiting a bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) indicated bullish trading in exchanges such as OFSS, Sky Gold, Bombay Burmah Trading Corporation, Crisil, Ramco Systems, Mallcom and Jupiter Life Line Hospitals.
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:
The MACD showed bearish signs in stocks like Inox Wind Energy, Bharat Rasayan, Info Edge, Protean eGov Technologies, TCS, Strides Pharma, TVS Srichakra etc. The bearish crossover of MACD in these stocks indicates that the downward trend has just begun.
Most Active Stocks by Value:
Mazagon Dock Ship (Rs 3,728 crore), HDFC Bank (Rs 2,023 crore), RIL (Rs 1,811 crore), ICICI Bank (Rs 1,672 crore), HAL (Rs 1,544 crore), Zomato (Rs 1,425 crore) and Piramal Pharma (Rs 1,386 crore) were among the most active stocks in terms of value traded on the NSE. High volume stocks in terms of value traded help identify stocks with the highest trading volume for the day.
Most active stocks by trading volume:
Vodafone Idea (281 million shares traded), YES Bank (750 million shares traded), Piramal Pharma (660 million shares traded), Zomato (590 million shares traded), JM Financial (560 million shares traded), HFCL (440 million shares traded) and Tata Steel (440 million shares traded) were among the most traded stocks during the NSE trading session.
Stocks showing buying interest:
Shares like CCL Products, Piramal Pharma, Jubilant Ingrevia, PNB Housing, Biocon, FDC and HPCL hit new 52-week highs, indicating bullish sentiment and strong buying interest from market participants.
Stocks seeing selling pressure:
None of the major stocks hit 52-week lows on Wednesday.
Sentiment Meter Favors the Bears:
Overall, market breadth was in favor of the bears as 2,043 stocks declined and 1,910 stocks advanced.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not represent the views of The Economic Times)
