Here’s how analysts read the market pulse:
“Optimism has inched back today after the last three trading days of consolidation ahead of the FOMC meeting. As the market’s ambiguity against the monetary policy is likely to reverse henceforth, going forward, we are unlikely to see another Fed rate hike in 2023. This is because inflation has rapidly come down and is forecast to settle down further. However, the interest rate is expected to stay high in the short term since the rigidity of core inflation remains above the long-term average,” Vinod Nair, Head of Research at Geojit Financial Services, said.
“The minor downward correction of the last few sessions seems to have completed, and the market has now shifted into an upside bounce. A decisive move above 19850 is likely to open doors for a higher target of 20050 in the near term. Immediate support is at 19600 levels,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.
That said, here’s a look at what some key indicators are suggesting for Thursday’s action:
US market
The S&P 500 and the Nasdaq edged lower on Wednesday as investors assessed mixed earnings from Microsoft and Alphabet ahead of a Federal Reserve rate hike that could push borrowing costs to their highest since the global financial crisis.
Microsoft eased 3.3% after laying out an aggressive spending plan to meet demand for its new artificial intelligence (AI)-powered services. The Windows maker still surpassed estimates for quarterly revenue and profit.
At 9:48 a.m. ET, the Dow Jones Industrial Average was up 9.99 points, or 0.03%, at 35,448.06, the S&P 500 was down 5.08 points, or 0.11%, at 4,562.38, and the Nasdaq Composite was down 22.51 points, or 0.16%, at 14,122.04.
European shares
European shares are set to snap a six-day winning run on Wednesday, hurt by underwhelming results from French luxury goods giant LVMH as well as nerves ahead of the Federal Reserve’s interest rate decision later in the day.
The pan-European STOXX 600 index shed 0.5% after recording its longest winning streak since January on Tuesday.
Shares of LVMH fell 4.4% to a more than two week low as analysts said that an in-line increase in sales at the world’s top luxury firm indicated the overall sector was moving towards a less impressive path of growth.
Tech View: Small Positive Candle
A small positive candle was formed on the daily chart on Wednesday with minor upper shadow. Technically, this pattern indicates an upside bounce in the market from near the immediate support of 10-day EMA around 19650 levels. But, the market seems to be facing resistance at 19800 levels.
Stocks Showing Bullish Bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of REC, Piramal Enterprises, Balkrishna Industries, Amber Enterprises, and Rupa and Company, 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 Federal Bank, IOC, Can Fin Homes, Devyani International, and Wipro, 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 2099 crore), Tata Motors (Rs 2060 crore), Bajaj Finance (Rs 1681 crore), RIL (Rs 1631 crore), and L&T (Rs 1545 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 the highest trading turnovers in the day.
Most Active Stocks in Volume Terms
Vodafone Idea (Shares traded: 43.28 crore), PNB (Shares traded: 16.6 crore), YES Bank (Shares traded: 11.38 crore), IRFC (Shares traded: 8.52 crore), and Reliance Power (Shares traded: 6.4 crore) were among the most traded stocks in the session on NSE.
Stocks Showing Buying Interest
Shares of Jyothy Labs, RBL Bank, Motilal Oswal, Castrol India, and Sarda Energy, 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 Orient Bell, Viji Finance, Zee Learn, and Vinny Overseas, among other stocks that hit their 52-week lows, signaled bearish sentiment on the counters.
Sentiment Meter Favours Bulls
Overall, the market breadth favored bulls as 1,839 stocks ended in the green, while 1,708 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.)