NEW DELHI: Nifty ended Thursday’s volatile trading session on a flat note and formed a ‘Spinning Top’ like candle on the daily chart.
Ajit Mishra of Religare Broking said markets have been hovering in a narrow range for the last four sessions and indications are in the favour of further surge.
“However, a lot would depend upon the outcome of the Supreme Court hearing on the AGR case on Friday. We thus advise continuing with hedged trades, with the bias on the positive side,” he said.
Vinod Nair of Geojit Financial Services said domestic stock valuation concerns and continuing high rate of virus infections impacted the Indian markets.
“Markets seem to be in a wait and watch mode, and investors are advised to tread cautiously and accumulate stocks,” he said.
Chandan Taparia of Motilal Oswal Securities said the index needs to hold above 11,200 to move towards 11,400 and 11,500 levels.
“Downside supports exist at 11,200 and 11,150 levels,” he said.
That said here’s a look at what some of the key indicators are suggesting for Friday’s action:
US stocks rise as Apple nears $2 trillion in market cap
The Nasdaq Composite rose on Thursday as Apple inched toward $2 trillion in market capitalization, while the S&P 500 and Dow indexes were flat with data signaling a faltering labor market recovery. The Dow Jones Industrial Average was down 10.02 points, or 0.04%, at 27,966.82, and the S&P 500 was up 2.10 points, or 0.06%, at 3,382.45. The Nasdaq Composite was up 61.59 points, or 0.56%, at 11,073.82.
European shares slip after four-day run
European stocks fell on Thursday as simmering tensions between the United States and China, and elusive U.S. fiscal stimulus, pushed investors to book profits after four straight sessions of gains, while Airbus dipped as Washington left aircraft tariffs unchanged. The pan-European STOXX 600 was off 0.4%, with Airbus sliding 1.2% after the U.S. government said it would maintain 15% tariffs on planes and 25% tariffs on other European goods, despite moves to resolve a long-standing dispute over aircraft subsidies.
Tech View: Nifty may break out after rangebound trade
While Nifty50 ended flat on Thursday, it still managed to hold above the 11,300 level. The index continued to form indecisive candles, Thursday’s one being a ‘Spinning Top’, on the daily chart. It has been trading in a narrow range for some time and is facing selling pressure at higher levels. Analysts, however, expect a breakout soon. The index needs to hold above 11,200 level to move towards 11,400 and 11,500 zones. Downside supports exist at 11,200 and 11,150 levels.
Check out the candlestick formations in the latest trading sessions
ETMarkets.comF&O: VIX suggests bulls using decline as buying opportunity
India VIX fell 1.31 per cent to 20.56 level. Volatility has been falling since last eight sessions and a gradual decline in VIX suggests the bulls are using every decline as a buying opportunity even though the overall trend remains bullish. Options data suggested an immediate trading range between 11,100 and 11,500 levels for the coming few days.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Thursday showed bullish trade setup on the counters of NBCC (India), M&M Fin.Services, Equitas Holdings, Aditya Birla Fashion, Tech Mahindra, United Spirits, MMTC, Sadbhav Engineering, Sadbhav Infra, Sterlite Technologies, Apollo Micro Systems, Dhanlaxmi Bank, Nippon Life AM, Godrej Agrovet, Precision Camshafts, Radico Khaitan, Oberoi Realty, Gujarat Pipavav Port, Century Plyboards, Symphony, Solar Industries Ind, Hi-Tech Pipes and SKF India among others.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Dabur India, Granules India, Crompton Greaves, PTC India Financial, GSFC, Info Edge (India), The Andhra Sugars, Mayur Uniquoters, Indraprastha, Tata Communications, Thyrocare Tech, KSB, AMJ Land Holdings, Future Market, Greenlam Industries, IVP, De Nora India and GRP. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
RIL (Rs 2431.11 crore) , Bharti Airtel (Rs 1977.05 crore) , InterGlobe Aviation Ltd. (Rs 1904.02 crore) , Bajaj Finance (Rs 1602.93 crore) , SBI (Rs 1435.30 crore) , Ashok Leyland (Rs 1429.99 crore) , Bharat Forge (Rs 1302.27 crore) , Tata Motors (Rs 1229.09 crore) , YES Bank (Rs 1176.43 crore) and HDFC Bank (Rs 1057.24 crore) were among the most active stocks on Dalal Street on Thursday 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
YES Bank (shares traded: 72.13 crore) , Ashok Leyland (shares traded: 24.50 crore) , Vodafone Idea (shares traded: 18.15 crore) , BHEL (shares traded: 12.82 crore) , Tata Power (shares traded: 11.27 crore) , Tata Motors (shares traded: 9.55 crore) , SBI (shares traded: 7.04 crore) , IDFC First Bank (shares traded: 5.05 crore) , IDFC (shares traded: 4.82 crore) and Alok Industries (shares traded: 4.13 crore) were among the most traded stocks in the session.
Stocks seeing buying interest
Hindustan Aeronautics, Aditya Birla Fashion (PP), Galaxy Surfactants Ltd., Tube Investments of India and Alkyl Amines witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Thursday signalling bullish sentiment.
Stocks seeing selling pressure
Mittal LifeStyle, Worth Peripherals and Kapston Facilities Management witnessed strong selling pressure in Thursday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls
Overall, market breadth remained in favour of bulls. As many as 297 stocks on the BSE 500 index settled the day in green, while 199 settled the day in red.
Podcast: Will midcaps and smallcaps take over now? >>>
The benchmark indices wiped out morning gains to end in the red for the second consecutive session amid an increase in Covid-19 cases and confusion over fresh US stimulus. There was brisk selling in index heavyweights Bharti Airtel, ITC, HDFC Bank, RIL, Infosys and Sun Pharma, which dragged the 30-share Sensex 59 points lower to 38,310 while Nifty shed 8 points to end at 11,300. We caught up with Vinod Nair of Geojit Financial Services to try and understand the market undercurrent.