Ahead of Market: 10 things that will decide D-St action on Thursday - Economic Times

Benchmark indices Sensex and Nifty extended gains to the second day in a row on Wednesday amid lower level of inflation on the domestic front and better-than-expected inflation readings from the US. The 30-share BSE Sensex climbed 145 points to settle at 62,678. The broader NSE Nifty advanced 52 points to end at 18,660. Bank Nifty hit a fresh new high.

Here's how analysts read the market pulse:

“Nifty rose for the second consecutive session on December 14, in line with most Asian markets that were up. After a volatile session, Nifty closed 0.28% or 52.3 points higher at 18,660. Sharp fall in WPI inflation for November also helped sentiments. Broad market indices rose more than the Nifty even as the advance decline ratio was up at 1.35:1,” said Deepak Jasani, Retail Research Head, HDFC Securities.

“Continuing with the positive momentum from the last couple of sessions, the Nifty opened gap up on December 14. Despite multiple attempts, however, it couldn’t build upon the early gains. Fibonacci retracement shows that the index has done deep retracement of the entire recent decline & has reached 61.8% retracement mark. Overall structure shows that the index is still in short-term consolidation & can trade around 18,700-18,300 over the next few sessions,” said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by

.
That said, here’s a look at what some key indicators are suggesting for Thursday's action:

US market
Wall Street's main stock indexes inched up on Wednesday, as investors steered clear of placing big bets ahead of an interest rate decision by the Federal Reserve later in the day (GMT). The US central bank is widely expected to raise the fed-funds rate by half a percentage point to 4.25-4.50%. The decision will be announced at 2 p.m. ET (1800 GMT) and followed by Chair Jerome Powell's press conference.

At 9:53 am ET, the Dow Jones Industrial Average was up 137.28 points, or 0.40%, at 34,246, the S&P 500 was up 14.07 points, or 0.35%, at 4,034, and the Nasdaq Composite was up 20.00 points, or 0.18%, at 11,277. Eight out of the 11 major S&P 500 sectors were in the green, led by technology and utilities. Megacap growth stocks like Microsoft Corp, Apple Inc, Mastercard Inc and Qualcomm Inc gained between 0.9% and 1.1%. Tesla Inc slipped 2% after a Goldman Sachs analyst trimmed the price target for the electric-vehicle maker's stock.

European shares
European shares slipped on Wednesday from near one-week highs touched in the previous session, as investors traded cautiously ahead of the US Federal Reserve's interest rate decision.

The region-wide STOXX 600 was down 0.4% at 0814 GMT. The index had rallied more than 1% on Tuesday as equities globally received a boost from softer-than-expected US inflation data that raised hopes of the Fed shifting to smaller rate hikes.

On Wednesday, most of the STOXX 600 sectors declined. Travel and leisure stocks’ 1.1% fall led the slide, followed by tech stocks, which slipped 0.8%.

Tech View: Negative candle
Small negative candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicates a high wave or doji type candle pattern after a rise. Normally, such candle formations after a reasonable rise signal volatility at the highs and sometimes it acts as a reversal pattern post-confirmation.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of

, , , and , among others.
The MACD is known for signalling trend reversals in traded securities or indices. When the MACD crosses above the Signal Line, it gives bullish indications, 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

, , Tourism Finance, and Garden Reach Shipbuilders, among others.

Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms

(Rs 2,794 crore), (Rs 1,179 crore), (Rs 1,273 crore), (Rs 1,142 crore) and PNB (Rs 1039 crore) were among the most active stocks on the NSE 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: 122.5 crore), Vodafone Idea (Shares traded: 51.57 crore), UCO Bank (Shares traded: 39.63 crore), and

(Shares traded: 33.64 crore) were among the most traded stocks in the session on the NSE.

Stocks showing buying interest
Shares of UCO Bank, GIC, Suzlon Energy,

witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
Shares of Vodafone Idea hit their 52-week lows on Tuesday, which signals bearish sentiment on the counter.

Sentiment meter favours bulls
Overall, market breadth favoured bulls as 2,034 stocks ended in the green, while 1,498 settled with cuts.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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Ahead of Market: 10 things that will decide D-St action on Thursday - Economic Times
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