Chandan Taparia, Technical & Derivative Analyst at MOFSL, said, “Now, Nifty has to hold above 15,050 level to continue the bullish momentum towards 15,250 and 15,500 levels, while on the downside major support can be seen around 15,000 and 14,850 levels.”
“The domestic market closed with slight gains after its range-bound rally, tracking gains in index heavyweights and positive European & Asian markets. The upward movement in the market was supported by energy, telecom and FMCG stocks with small caps outperforming. Dip in January auto retail sales numbers pushed the sectoral index into the negative territory while PSU banks also remained under pressure,” said Vinod Nair, Head of Research at Geojit Financial Services.
That said, here’s a look at what some of the key indicators are suggesting for Friday’s action:
Dow Jones hits record high as data fuels stimulus bets
The Dow hit a record high on Thursday while the S&P 500 and the Nasdaq hovered near all-time highs as investors bet on more fiscal stimulus to ride out a coronavirus-driven recession with data showing a stalling recovery in the labor market. The Dow Jones Industrial Average rose 12.67 points, or 0.04%, to 31,450.47, the S&P 500 gained 7.62 points, or 0.18%, to 3,917.50 and the Nasdaq Composite gained 50.48 points, or 0.36%, to 14,023.02.
European shares edge higher, AstraZeneca lifts healthcare stocks
European shares edged higher on Thursday, still on track to end the week flat, as investors kept close watch on a barrage of earnings reports from companies for clues on the pace of business recovery. The pan-European STOXX 600 index was 0.3% higher in early trading, after having gained nearly 3.5% so far in February. The STOXX 600 is about 5% below its peak of February 2020 after a rally of about 50% since it crashed in March, aided by historic monetary and fiscal stimulus.
Tech View: Nifty in a consolidation phase, 15,200 level crucial hurdle
Nifty closed the weekly F&O expiry day with a gain of 66.80 points, or 0.44 per cent, at 15,173. The index hit a high of 15,188 and a low of 15,065 during the day. A long positive candle was formed on Thursday, after the formation of Doji or High Wave type candle pattern. Nifty closed the weekly F&O expiry day with a gain of 66.80 points, or 0.44 per cent, at 15,173. The index hit a high of 15,188 and a low of 15,065 during the day. A long positive candle was formed on Thursday, after the formation of Doji or High Wave type candle pattern.
Check out the candlestick formations in the latest trading sessions
F&O: Nifty setup to stay bullish as long as it stays above 15,050
India VIX fell 3.78% from 23.95 to 23.04 levels. Now, it needs to cool down and hold below 21 level for the continuation of the ongoing momentum with a higher market base. On the options front, maximum Put Open Interest was seen at strike price 14,000 followed by 13,500 while maximum Call OI was at 16,000 followed by 15,500. There was Put writing at strike prices 14,500 and 15,000 while Call writing was seen at 16,300 and 16,100 levels. Options data suggested a wider trading range between 14,500 and 15500 levels, while the immediate range is seen between 15,000 and 15,300 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Thursday showed bullish trade setup on the counters of NBCC (India), Subex, HUDCO, Brightcom Group, Hindustan Petroleum, Indraprastha Gas, Edelweiss Financial Services, Mangalore Chemical and Fertilisers, and others.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Bank of Baroda, Tata Motors, Sanco Industries, Karnataka Bank, S H Kelkar & Company, Phillips Carbon, ABB India, Pitti Engineering, TCI, Can Fin Homes, MRF, L&T Technology Services, Trigyn Technologies, Mahindra CIE Auto, De Nora India, South West Pinnacle, Hinduja Global Solutions, Tokyo Plast International, Safari Industries, M M Forgings and Honeywell Automation.
Thursday’s most active stocks
RIL (Rs 3,981.56 crore), Tata Motors (Rs 1,805.64 crore), MRF (Rs 1,718.55 crore), SBI (Rs 1,425.14 crore), Hindalco Industries (Rs 1,377.59 crore), Eicher Motors (Rs 1,251.81 crore), Tata Steel (Rs 1,134.01 crore), Bharti Airtel (Rs 1,131.24 crore), Bajaj Finance (Rs 1,126.49 crore) and HDFC Bank (Rs 1,076.73 crore) were among the most active stocks on Dalal Street on Thursday in value terms.
Thursday’s most active stocks in volume terms
Vodafone Idea (Shares traded: 53.81 crore), PNB (Shares traded: 15.15 crore), IDFC First Bank (Shares traded: 6.87 crore), Bank of Baroda (Shares traded: 6.59 crore), YES Bank (Shares traded: 5.81 crore), Tata Motors (Shares traded: 5.53 crore), Hindalco Industries (Shares traded: 4.74 crore), GAIL (Shares traded: 4.57 crore), ITC (Shares traded: 4.36 crore) and Motherson Sumi (Shares traded: 4.32 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Route Mobile, Indian Energy Exchange, J B Chemicals, Dilip Buildcon and Affle (India) witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Thursday, signalling bullish sentiment.
Stocks seeing selling pressure
Global Education, Sanwaria Consumer and Valiant Organics 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 294 stocks on the BSE 500 index settled the day in green, while 201 settled the day in red.
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RIL contributed the most to the benchmarks’ gains as the stock rose over 4 per cent as investors see light at the end of the tunnel for its deal to buy the retail assets of Future Group. Market buzz of likely demerger of its telecom and retail verticals, ahead of a possible listing, also boosted the stock. We caught up with Vinod Nair of Geojit BNP Paribas to understand his views on the market.