Here’s how analysts read the market pulse:
“Asian Development Bank retained forecasts for India’s economic growth at 6.4% for FY24 and 6.7% for FY25, citing robust domestic demand that would continue to support the region’s recovery. Nse Cash market volumes were lower as compared to recent averages.
“Nifty remains in the strong uptrend. For the short-term, support for the Nifty has shifted to 19690. Immediate resistance for the Nifty is placed around 20000 levels,” Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities, said.
“Indian equities saw another day of gains with the headline index holding strong amidst volatile trading. The market trend remains positive as the index stays above the moving average. Support is found at 19,700, while resistance is expected between 18900 and 20000 levels, “ Rupak De, Senior Technical analyst at LKP Securities, said.
That said, here’s a look at what some key indicators are suggesting for Thursday’s action:
US market
Wall Street rose on Wednesday as investors looked past second-quarter earnings from Goldman Sachs, while taking comfort from strong profits from some of the smaller players in the sector.Goldman Sachs eased 1.0% after reporting a bigger-than-expected drop in quarterly profit as a retreat from consumer businesses and declining investment values took a toll on the Wall Street behemoth.
US Bancorp slipped 0.3% after the Minneapolis-based lender forecast full-year net interest income (NII) below Wall Street estimates.
At 9:44 a.m. ET, the Dow Jones Industrial Average was up 134.80 points, or 0.39%, at 35,086.73, the S&P 500 was up 19.00 points, or 0.42%, at 4,573.98, and the Nasdaq Composite was up 52.42 points, or 0.37%, at 14,406.06.
All of the top 11 S&P 500 sectors were in the green, led by gains in real estate stocks, which rose 1.3% in early trading.
European shares
European shares rose on Wednesday on a boost from shares of Kering after top management changes at the luxury group, while London stocks firmed following data which showed a faster-than-expected slowdown in British inflation.
The pan-European STOXX 600 index was up 0.2% by 0817 GMT, extending gains to the second straight session.
Kering jumped 5.9% after the French luxury goods group on Tuesday named managing director Jean-Francois Palus as Gucci’s new CEO and president for a transitional period, with incumbent Marco Bizzarri to leave on Sept. 23.
Overall, second quarter earnings for STOXX 600 companies are expected to fall 9.2% from the previous year, according to Refinitiv IBES data.
Tech View: Small positive candle
A small positive candle was formed at the highs with minor upper and lower shadows, as per daily time frame chart. Technically, this pattern indicates a formation of high wave type candle pattern at the highs, which is the second similar pattern in the last two sessions. This market action indicates a stiff resistance zone for the Nifty at 19850 levels. Minor negative patterns are not getting confirmed at the highs/hurdles and there is an absence of any reasonable downward corrections from the resistances. This is a positive indication.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of TV18 Broadcast, Tata Tele. HDFC Bank, Ircon International and IndusInd Bank, 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 PC Jeweller, IDBI Bank, DCB Bank, M&M and Petronet LNG, among others.
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 2771 crore), RIL( Rs 5104 crore), Infosys (Rs 2022 crore) and ICICI Bank (Rs 1555 crore) 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 highest trading turnovers in the day.
Most active stocks in volume terms
Bank of Maharashtra (Shares traded: 16.47 crore), Vodafone Idea (Shares traded: 21.44 crore), Reliance Power (Shares traded: 15.46 crore) and TV18 Broadcast (Shares traded: 11.54 crore) among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of Titagarh Wagons, Finolex Cables, Saregama India, Tejas Networks and SJVN, 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 Shree Ram Proteins, Cell Point (India) and Jet Airways among others stocks that hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bulls
Overall, market breadth favoured bulls as 1,929 stocks ended in the green, while 1,482 names settled in the red.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)