Benchmark indices Sensex and Nifty climbed to fresh record high levels on Thursday in line with firm global trends after the US Federal Reserve announced the first cut in policy rate in more than four years.
Here's how analysts read the market pulse:
"Nifty index is facing a lot of resilience around the crucial resistance zone of 25,500-25,550 levels and we believe that Nifty will further outperform only if it is able to decisively close above this resistance zone or else consolidation is likely to continue in the range of 25,200 to 25,500-550 levels. Support for Nifty is now seen at 25,350 and 25,175-200. On the higher side, the next crucial resistance zone is at 25,500-550," said Tejas Shah, JM Financial & BlinkX.
"Going forward, the sentiment may remain sideways to weak as long as the index stays below the 25,550–25,600 range. On the lower end, support is placed at 25,350. Below which the Nifty might correct down towards 25,100-25,000," said Rupak De, LKP Securities.
That said, here’s a look at what some key indicators are suggesting for Friday's action:
US market:
Wall Street surged on Thursday, with the S&P 500 reaching another intraday record high and Nasdaq rising over 2% following the Federal Reserve's half-percentage point rate cut and indications of more reductions to come.
Rate-sensitive growth stocks, which have driven much of this year's rally, saw significant gains. Microsoft rose by 2%, Tesla increased by 4.2%, and Apple climbed 2.6%.
In the semiconductor sector, Nvidia jumped 4.7%, Advanced Micro Devices gained 3.5%, and Broadcom added 3.8%, boosting the Philadelphia SE Semiconductor Index by 3.6%.
The Russell 2000 index also rose 1.7% alongside the broader market, as a lower interest rate environment may lead to reduced operating costs and higher profits for credit-dependent companies.
European stocks:
European stocks surged on Thursday following the U.S. Federal Reserve's 50-basis-point rate cut and its indication of cautious further easing, fueling optimism for a soft landing in the American economy.
The pan-European STOXX 600 index closed up 1.4%, marking its highest closing level in over two weeks.
Most local exchanges also posted significant gains, with Germany's blue-chip index rising 1.6% to a record closing high of 19,002.38 points.
Growth-sensitive technology stocks climbed 3.5%, mirroring the performance of tech giants on Wall Street, while mining stocks gained 3% as prices for most base metals increased following the Fed's long-anticipated rate cut and a weaker dollar.
Tech View:
A small negative candle was formed on the daily chart with a long upper shadow. Technically, this pattern indicates false upside breakout of the range movement at 25,500 levels. Having rejected sharply from the new highs, minor dip can't be ruled out in the short term, said Nagaraj Shetti of HDFC Securities.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Asahi Industries Glass, Policybazaar, Endurance Tech, Jubilant Food, Finolex Industrie, Bikaji Foods among others.
The MACD is known for signaling 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 signaling weakness ahead:
The MACD showed bearish signs on the counters of VIP Industries, Asian Paints, Godrej Industries, Apollo Hospital, JK Cement, and Rajesh Exports 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:
Indus Towers (Rs 3,253 crore), HDFC Bank (Rs 2,622 crore), NTPC (Rs 2,541 crore), RIL (Rs 2,487 crore), Vodafone Idea (Rs 2,408 crore), BSE (Rs 2,300 crore), and HAL (Rs 1991 crore) among others were among the most active stocks on 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:
Vodafone Idea (Shares traded: 21.4 crore), YES Bank (Shares traded: 8.9 crore), Indus Towers (Shares traded: 8.3 crore), Suzlon (Shares traded: 6 crore), NPTC (Shares traded: 5.9 crore), HFCL (Shares traded: 5 crore), and Zomato (Shares traded: 4.8 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Policybazaar, Campus Activewear, Jubilant Food, NTPC, Max Healthcare, Voltas, and Info Edge among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
Only Vodafone Idea shares hit their 52-week low on Thursday.
Sentiment meter bulls bears:
Overall, market breadth favoured bears as 2,734 stocks ended in the red, while 1,246 names settled in the green.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Here's how analysts read the market pulse:
"Nifty index is facing a lot of resilience around the crucial resistance zone of 25,500-25,550 levels and we believe that Nifty will further outperform only if it is able to decisively close above this resistance zone or else consolidation is likely to continue in the range of 25,200 to 25,500-550 levels. Support for Nifty is now seen at 25,350 and 25,175-200. On the higher side, the next crucial resistance zone is at 25,500-550," said Tejas Shah, JM Financial & BlinkX.
"Going forward, the sentiment may remain sideways to weak as long as the index stays below the 25,550–25,600 range. On the lower end, support is placed at 25,350. Below which the Nifty might correct down towards 25,100-25,000," said Rupak De, LKP Securities.
That said, here’s a look at what some key indicators are suggesting for Friday's action:
US market:
Wall Street surged on Thursday, with the S&P 500 reaching another intraday record high and Nasdaq rising over 2% following the Federal Reserve's half-percentage point rate cut and indications of more reductions to come.
Rate-sensitive growth stocks, which have driven much of this year's rally, saw significant gains. Microsoft rose by 2%, Tesla increased by 4.2%, and Apple climbed 2.6%.
In the semiconductor sector, Nvidia jumped 4.7%, Advanced Micro Devices gained 3.5%, and Broadcom added 3.8%, boosting the Philadelphia SE Semiconductor Index by 3.6%.
The Russell 2000 index also rose 1.7% alongside the broader market, as a lower interest rate environment may lead to reduced operating costs and higher profits for credit-dependent companies.
European stocks:
European stocks surged on Thursday following the U.S. Federal Reserve's 50-basis-point rate cut and its indication of cautious further easing, fueling optimism for a soft landing in the American economy.
The pan-European STOXX 600 index closed up 1.4%, marking its highest closing level in over two weeks.
Most local exchanges also posted significant gains, with Germany's blue-chip index rising 1.6% to a record closing high of 19,002.38 points.
Growth-sensitive technology stocks climbed 3.5%, mirroring the performance of tech giants on Wall Street, while mining stocks gained 3% as prices for most base metals increased following the Fed's long-anticipated rate cut and a weaker dollar.
Tech View:
A small negative candle was formed on the daily chart with a long upper shadow. Technically, this pattern indicates false upside breakout of the range movement at 25,500 levels. Having rejected sharply from the new highs, minor dip can't be ruled out in the short term, said Nagaraj Shetti of HDFC Securities.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Asahi Industries Glass, Policybazaar, Endurance Tech, Jubilant Food, Finolex Industrie, Bikaji Foods among others.
The MACD is known for signaling 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 signaling weakness ahead:
The MACD showed bearish signs on the counters of VIP Industries, Asian Paints, Godrej Industries, Apollo Hospital, JK Cement, and Rajesh Exports 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:
Indus Towers (Rs 3,253 crore), HDFC Bank (Rs 2,622 crore), NTPC (Rs 2,541 crore), RIL (Rs 2,487 crore), Vodafone Idea (Rs 2,408 crore), BSE (Rs 2,300 crore), and HAL (Rs 1991 crore) among others were among the most active stocks on 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:
Vodafone Idea (Shares traded: 21.4 crore), YES Bank (Shares traded: 8.9 crore), Indus Towers (Shares traded: 8.3 crore), Suzlon (Shares traded: 6 crore), NPTC (Shares traded: 5.9 crore), HFCL (Shares traded: 5 crore), and Zomato (Shares traded: 4.8 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Policybazaar, Campus Activewear, Jubilant Food, NTPC, Max Healthcare, Voltas, and Info Edge among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
Only Vodafone Idea shares hit their 52-week low on Thursday.
Sentiment meter bulls bears:
Overall, market breadth favoured bears as 2,734 stocks ended in the red, while 1,246 names settled in the green.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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