Analysts read market trends as follows:
“Today’s domestic rally is underpinned by stable profit margins, a new generation of business opportunities, and increased pricing power from US dollar prudence as recent US inflation moves rapidly closer to the Fed’s target level. But a mixed start to bank earnings, combined with continued concerns over domestic inflation, contributed to bearish sentiment in the second half,” said a Geojit Financial Services survey. Director, Vinod Nair said.
“Nifty is likely to consolidate in the 19300-19570 range, and we expect flat price action to continue until this range is definitively breached on either side. The trend is good and Nifty is adjusting in time, with the critical support zone between 19360 and 19320 and the resistance zone between 19550 and 19570,” said Jatin, technical research analyst at Sharecan at BNP Paribas. Gedia said.
With that said, let’s take a look at what some key indicators suggest for Friday’s action.
Wall Street rose on Thursday after producer price data provided further evidence of slowing inflation in the world’s largest economy, raising hopes that the Federal Reserve will soon end monetary tightening.
US producer prices barely rose in June, and the annual rate of rise in producer inflation was the lowest in about three years. A separate report showed an unexpected drop in weekly unemployment claims last week, suggesting the labor market remains tight. As of 9:44 a.m. ET, the Dow Jones Industrial Average was up 92.93 points (0.27%) to 34,440.36, the S&P 500 Index was up 23.92 points (0.53%) to 4,496.08, and the Nasdaq Composite was up 131.84 points (0.95). )Rose. %, 14,050.80.
Tech stocks led the way on Thursday on hopes that the post-pandemic Fed tightening cycle is coming to an end as weaker US inflation overshadows weaker China trade data. Rose.
The pan-European STOXX 600 index rose 0.4% as of 8:35 pm Japan time, the fifth consecutive day of increase.
On Wednesday, the measure posted its biggest gain since early June, as U.S. consumer inflation slowed faster than expected, fueling speculation that the Fed could end its rate hikes soon after July. Recorded.
Tech View: Small Negative Candle
A small negative candlestick has formed along with a long upper shadow on the daily chart. Technically, this pattern shows that the market does not have the strength to sustain new highs. Over the past week, the market has observed him range-bound around the 19500-19300 level, and we expect the sideways move to continue in the near term.
Stocks exhibiting a bullish bias
The momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on counters such as Zomato, Tejas Network, Piramal Enterprises and Finolex Cables.
MACD is known to signal trend reversals in traded securities or indices. When the MACD crosses the signal line, it is a bullish signal, indicating that the security price may rise and vice versa.
Stocks signal a weak outlook
MACD showed bearish signs on counters such as Tata Power, L&T Financial Holdings, J Corp, Indiables Housing Finance and Gujarat Pipabab. A bearish MACD crossover for these counters shows that the downside journey is just beginning.
Most Active Stocks by Value
HDFC Bank (Rs 3,455 million), ICICI Bank (Rs 2,215 million), RIL (Rs 1,879 million), Zomato (Rs 1,575 million), Mazagon Dock Shipyard (Rs 1,282 million) became one of the NSE’s most active stocks by value. The higher the trading volume of a counter, the more useful it is to identify the counter with the highest trading volume for the day.
Most Active Stocks by Volume
Zomato (19.26 billion shares traded), Suzuron Energy (14.91 billion shares traded), YES Bank (12.55 billion shares traded), Reliance Power (12.55 billion shares traded) 11.47 billion shares) and PNB (number of trading shares: 9.83 billion shares). The most traded symbols in the NSE session.
Stocks showing willingness to buy
Stocks such as Tejas Networks, Phoenix Mills, Zomato, Tanla Solutions and Fact showed strong buying interest from market participants as they hit 52-week highs.
stocks under selling pressure
Stocks such as UPL, RT Industries, Dungey Dames and Jet Airways hit 52-week lows, signaling bearish sentiment over-the-counter.
Sentimentometer favors bears
Overall, the breadth of the market favored the bears, with 1,211 stocks ending in green while 2,252 stocks ended in loss.
(Disclaimer: Professional recommendations, suggestions, views and opinions are those of the experts and do not represent the views of The Economic Times)