Nifty, which traded in a defined range of 138 points, ended the day flat, forming a small bullish candle on the daily chart, with a long lower wick, suggesting the bulls were not ready to give up easily. Analysts said the index may consolidate a bit from here on, but the broader trend still remains positive. Will the market continue to hover near the flatline or will it touch fresh highs soon?
Here’s how analysts read the market pulse:
Mazhar Mohammad of Chartviewindia.in believes the index may remain sideways in the 15,650-400 zone, until Nifty50 registers a close above 15,660 level.
independent analyst Manish Shah, said, Nifty is in a sharp uptrend. “If we draw a trendline connecting lows from April 14 and April 20, Nifty hit this line and reversed. We are looking at the 15,775-15,800 zone, once it trades above 15,660 level,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Thursday’s action:
US shares rise as investors bide time until economic data
The latest leg of a surge in so-called “meme stocks” stood out on Wall Street on Wednesday, with the main stock indices rising slightly ahead of closely watched economic data this week. The technology sector rose 0.8 per cent, providing the biggest boost to the benchmark S&P 500, while communication services and materials eased. The Dow Jones Industrial Average rose 0.17 per cent to 34,633.64, the S&P 500 8.02 points, or 0.19 per cent, to 4,210.06. The Nasdaq Composite was up 12.88 points, or 0.09 per cent, at 13,749.35.
European shares near record highs
European stocks stayed near record levels, helped by energy and consumer stocks. The pan-European STOXX 600 index traded 0.3 per cent higher, holding just below its all-time high hit in the previous session. Data showing a strong expansion in US and European factory activity in May lifted world shares to fresh highs on Tuesday, with investors awaiting US jobs data on Friday for confirmation of a solid recovery in the world’s largest economy. Oil and gas stocks rose 0.9 per cent to lead sectoral gains in Europe as crude prices extended gains after OPEC and its allies stuck to their plan to cautiously bring back supply to the markets in June and July.
F&O: Falling VIX can gain further momentum
Volatility index India VIX fell 1.04 per cent from 17.38 to 17.21. The gauge is near its lowest levels in the last 65 weeks, since February 2020, and a falling VIX could extend the bullish market momentum towards a new high.
Tech View: Nifty50’s broader market trend stays positive
Analysts say the broader trend in the Nifty50 index remains bullish, notwithstanding the intermediate sideways movement. According to Gaurav Ratnaparkhi of Sharekhan, the index formed a Hammer on the hourly chart in the second half of the session before bouncing sharply towards the end. “This bounce is unlikely to develop into a larger structure on the upside and is a part of the consolidation that started on June 1. The 15,600-15,400 zone is expected to be the range for the consolidation,” he said.
Stocks showing a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of
, ONGC, Adani Enterprises, JSW Energy, PTC India Financial, Sutlej Textiles, Bharat Forge, Heritage Foods, Adani Total Gas, , Maithan Alloys, Gujarat Fluorochem, Steel City Securities, Magma Fincorp, Rajesh Exports, Olectra Greentech, Alphageo (India), Technocraft Industries, Torrent Pharma, J B Chemicals, Ambika Cotton Mi, Ashima, Power Mech Projects, Zota Healthcare, Bang Overseas, Vishnu Chemicals, Goa Carbons and Lakshmi Finance.
The MACD is known for signalling 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 signalling weakness ahead
The MACD showed bearish signs on the counters of Himadri Speciality, Orient Cement, Sun TV Network, Chambal Fertiliser, Prince Pipes, 20 Microns,
, Sadbhav Engineering, KNR Constructions, Motilal Oswal Finance, Aditya Birla Money, NCL Industries, Harrisons Malayalam, D-Link (India), Polycab India, , Tribhovandas Bhimji, VLS Finance, Aavas Financiers, JK Cement, Vardhman Polytex, TPL Plastech, , Garware Tech Fibres, Orbit Exports, Esab India, Honda India Power, Rane Brake Lining, NBI Industrial and Naga Dhunseri Group. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
Adani Enterprises (Rs 3,697.93 crore), Motherson Sumi (Rs 2,604.18 crore), RIL (Rs 2,476.41 crore), Adani Ports SEZ (Rs 2,262.45 crore), ITC (Rs 2,030.43 crore), PNB (Rs 1,725.29 crore), SBI (Rs 1,681.46 crore), Tata Steel (Rs 1,435.56 crore), Infosys (Rs 1,274.85 crore) and Bajaj Finance (Rs 1,166.59 crore) were among the most active stocks on Dalal Street in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.
Wednesday’s most active stocks in volume terms
PNB (Shares traded: 39.72 crore), Suzlon Energy (Shares traded: 17.39 crore), Vodafone Idea (Shares traded: 16.09 crore), Motherson Sumi (Shares traded: 10.12 crore), ITC (Shares traded: 9.67 crore), Reliance Power (Shares traded: 8.80 crore), JP Power (Shares traded: 8.32 crore), YES Bank (Shares traded: 7.71 crore), IDFC First Bank (Shares traded: 7.64 crore) and Bank of Baroda (Shares traded: 5.11 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Sumitomo Chemical, Motherson Sumi, PNB Housing, JSW Holdings and Adani Gas witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Suryoday Small Finance Bank and Vikas Lifecare RE 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, the market breadth remained in favour of bulls. As many as 371 stocks on the BSE 500 index settled the day in the green, while 127 settled the day in the red.
Markets appear to have taken a breather after the recent rally. What should investors watch out for in the coming days? What are the Nifty charts suggesting? Will rising crude prices impact D-Street sentiments?
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