market outlook: Ahead of Market: 10 things that will decide stock action on Friday

Before the domestic stock market ended on a flat note, it fluctuated significantly on both sides amid US-Taiwan tensions and the weekly expiration day. The India VIX fear meter index rose more than 4 percent. Defensive assets such as IT and pharmaceuticals performed better.

This is how analysts read the market pulse:

Rupak De, Senior Technical Analyst at

, said the momentum indicator RSI is in a bullish crossover. “The trend is likely to remain sideways to negative as long as it stays below 17,500. On the downside, there is support around 17,100-17,000.”

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Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said Nifty’s short-term uptrend status remains intact and there is no indication of a sharp reversal pattern on the highs. “The high volatility consolidation is likely to continue for the next 1-2 sessions. Immediate support is placed at 17,200 and the strong resistance should be watched at 17,500 levels. A decisive step above the hurdle could pull Nifty into the next upward trajectory of 17,800 levels.

That said, here’s a look at what some key indicators suggest for Friday’s action:

US market:

Wall Street fell amid choppy trading Thursday as losses in Apple Inc and energy companies dampened the bullish resolve of major indices, which had risen in a week in the previous session.

Apple weighed most on the S&P 500 and the Nasdaq, losing 0.4%, a day after rising 3.8%, while the energy sector fell 1.6% and followed lower oil prices on fears of a slowdown in the economy. ask.

European equities

European stocks rose Thursday as the Bank of England implemented its largest rate hike in 27 years and traders followed Chinese military exercises around Taiwan.

While economists had expected a 0.50 percentage point increase, the UK central bank also grimly predicted the country would slip into a prolonged recession later in the year.

Tech View: Nifty faces hurdle at 17,500

Nifty50 eventually formed a small bearish candle on the daily chart, with a long lower pit. Analysts said the index has turned sideways after the recent rally and expects it to find support around the 17,200 level. They see resistance for the index at 17,500.

Stocks Exhibiting Bullish Bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade lineup on the counters of

Kalyan Jewelers, , Lupine, Blue Star and ABB Power.

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 signal weakness ahead

The MACD showed bearish signs on the counters of Thyrocare,

, , Finolex, Mastek and Nesco. Bearish crossover on the MACD on these counters indicated that they are just beginning their downward journey.

Most active stocks in terms of value

RIL (Rs 1,715 crore), Tata Consumer (Rs 1,214 crore), Infosys (Rs 1,180 crore), SBI (Rs 963 crore),

(Rs 910 crore) and Hindalco (Rs 881 crore) were among the most active stocks on NSE in terms of value. Higher activity on a counter in terms of value can help identify the counters with the highest trade turnover on the day.

Most active stocks in terms of volume

(Shares traded: 7.9 crore), Hindalco (Shares traded: 2.1 crore), (Shares traded: 1.8 crore), SBI (Shares traded: 1.8 crore), ITC (Shares traded: 1.6 crore) and NTPC (shares traded: 1.6 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest

Shares of

, Adani Gas, , JK Paper and witnessed strong buying interest from market participants as they climbed their new 52-week highs, signaling bullish sentiment.

Stocks see selling pressure

Shares of

and witnessed strong selling pressure, reaching their 52-week low, pointing to bearish sentiment on counters.

Sentiment meter favors bears

Overall, market breadth favored losers as 1,484 stocks ended in the green, while 1,859 settled for austerity.

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

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