The Nifty 50 index lost 0.21% to 25,145 points, while the S&P BSE Sensex shed 0.18% to 82,201. The indices posted a second consecutive session of losses following a record rally.
Here’s how analysts read the market pulse:
“Sentiment remains indecisive, as the index stayed within the range of 25100 to 25200. Going forward, a clear directional trend may not emerge as long as the index remains within this range. A decisive move above 25200 could potentially push the index towards 25350/25500. Support on the lower end is placed at 25080/24950,” Rupak De of LKP Securities.
Jatin Gedia of Sharekhan, said, “On the daily charts we can observe that after the gap down in the previous trading session the price structure has weakened. The uptrend is still intact however there is a high probability of a consolidation within the range of 25000 – 25350 over the next few trading sessions. dips towards the support zone 25100- 25050 should be used as a buying opportunity. On the upside immediate hurdle is placed at 25300 – 25350.”
That said, here’s a look at what some key indicators are suggesting for Friday’s action:US market:
On Thursday, the Nasdaq and S&P 500 rose slightly after a services activity survey eased concerns about an economic slowdown. The Institute for Supply Management reported that services sector activity increased to 51.5 in August, surpassing expectations. Focus remains on the Federal Reserve’s anticipated interest rate cut later this month. Traders now see a 55% chance of a 25-basis point reduction, with 45% betting on a 50-bps cut. In early trade, the Dow fell 0.03%, while the S&P 500 and Nasdaq gained 0.28% and 0.83%, respectively.
European shares:
Europe’s main share indices hit a two-week low, driven by declines in technology stocks amid fears of a U.S. slowdown and weakness in China. The pan-European STOXX 600 index dropped 1%, with major regional markets falling between 0.5% and 1%.
The STOXX volatility index spiked to its highest level since August 9. Technology stocks led the downturn, falling over 3% to a near one-month low, mirroring the selloff in Wall Street tech shares due to disappointing economic data.
Tech View: Small red candle
Nifty formed a small red candle on the daily chart as it ended Thursday’s trading session on a slightly negative note as the index opened gap up but failed to sustain and slipped from its highs, closing 53.60 points lower at 25,145.
The short-term trend of Nifty continues to be choppy with weak bias. Further weakness from here could find key lower support around 25000-24900 levels before showing a sustainable upside bounce again from the lows. Immediate resistance is placed at 25300, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,200 and 25,150 strike prices, while on the put side, the highest OI was at 25,150 strike price.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Venky’s, Ethos, Cholamandalam Financial Holdings, Suven Pharma, Asian Paints, Sun Pharma, Anant Raj, and TTK Healthcare 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 Trent, Dixon Technologies, Page Industries, Power Mech Projects, VST Industries, and PB Fintech 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:
Zomato (Rs 2,944 crore), Max Financial (Rs 2,749 crore), RIL (Rs 2,445 crore), Mazagon Dock (Rs 2,243 crore), HDFC Bank (Rs 1,882 crore), Titan Company (Rs 1,275 crore), and GMR Infra (Rs 1,166 crore) among others 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:
Vodafone Idea (Shares traded: 28.6 crore), GMR Infra (Shares traded: 12.3 crore), Zomato (Shares traded: 11.5 crore), Easy Trip Planners (Shares traded: 10.6 crore), JM Financial (Shares traded: 7.6 crore), Suzlon Energy (Shares traded: 5.6 crore), and YES Bank (Shares traded: 5.6 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Caplin Point, UTI AMC, KEC International, Cholamandalam Financial Holdings, Vijaya Diagnostic, Avenue Supermart, and Concord Biotech among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
No major shares hit their 52-week low on Thursday.
Sentiment meter favours bulls:
Overall, market breadth favoured bulls as 2,249 stocks ended in the green, while 1,679 names settled in the green.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
