Here’s how analysts read the market beat:
Deepak Jasani, Head of Retail Research, HDFC Securities said: “Nifty closed sharply higher today, recording the best day in 5 weeks with the help of positive global cues. Nifty opened the gap up and kept going higher throughout the day. Finally, Nifty closed 2.29% or 386.9 points higher at 17,274.3. Volumes on the NSE have been remarkably low compared to recent averages. Among the sectors, Metals, Power, IT, Banks, Capital Goods, and Realty were the top gainers.”
Rupak De, Senior Technical Analyst at
said: “Nifty has moved higher following consolidation on the daily chart suggesting a bullish sentiment among market participants. The index has placed itself above 200-DMA, which is a bullish setup. A decisive move above 17,300 may trigger a strong rally in the market. On the downside, support is at 17,090; resistance on the higher side is seen at 17,600/17,725.”
That said, here’s a look at what some key indicators suggest for Thursday’s action:
US stocks slip after two-day rally
Wall Street stocks bounced back early Wednesday after two strong sessions as markets digested solid U.S. stabilization data and awaited data on an expected production cut by global oil exporters. About 15 minutes into trading, the Dow Jones Industrial Average was down 0.9 percent at 30,054.40.
The broad-based S&P 500 fell 1.1 percent to 3,749.87, while the high-tech Nasdaq Composite Index fell 1.5 percent to 11,009.16.
European shares fall
European shares fell on Wednesday, after rallying more than 5% in the previous three sessions on easing concerns about the pace of policy tightening, as investors’ focus turned to regional and US data numbers due later in the day .
The continent-wide STOXX 600 index was down 0.5% by 0711 GMT.
Tech View: Long bullish candle
On the daily charts, the Nifty formed a long bullish candle as it ended with a gain of 387 points. The index has been making higher lows for the last two sessions, indicating that the uptrend will continue in the near future.
Stocks that show a bullish bias
Moving Average Convergence Divergence (MACD) momentum indicator showed a bullish trading setup on accounts of ONGC, Lemon Tree,
Vikas Railway, Anant Raj and Wipro.
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 signals on Marico counters,
A bearish crossover of the MACD on these counters indicated that they had just begun their downward journey.
The most active stocks in terms of value
(Rs 1,822 crore), RIL (Rs 994 crore), Infosys (RS 946 crore), (RS 884 crore), and (RS 850 crore) are among the most active stocks on NSE in terms of value. Higher activity on a counter in terms of value can help identify the counters with the highest trading turnovers of the day.
The most active stocks in terms of volume
(Shares traded: 12.66 crore), YES Bank (Shares traded: 11.2 crore), (Shares traded: 10.84 crore), (Shares traded: 10.03 crore), and Zomato (Shares traded: 4.70 crore) among the most traded stocks in the session on NSE.
Stocks showing buying interest
Mazagon Dock, IDFC First, Kalyan Jewelers and , among others, market participants took keen interest in buying as they scaled their fresh 52-week highs, signaling anticipation of strong sentiment.
Stocks looking at selling pressure
among those who saw strong selling pressure and hit their 52-week low, indicating weak sentiment on the counters.
Sentiment meter is in favor of bulls
Overall, the breadth of the market favored the winners as 2,572 stocks ended in the green, while 874 names declined.
(Disclaimer: The suggestions, recommendations, views and opinions are those of the experts themselves. These do not represent the views of Economic Times)