The NSE Nifty 50 index rose 0.29% to 24,770, and the S&P BSE Sensex added 0.13% to 80,905.
Investors await the minutes of the latest Fed policy meeting later in the day and Chair Jerome Powell’s address later this week for clues into the rate cut trajectory.
Here’s how analysts read the market pulse:
“On the daily charts, we can observe that Nifty is heading towards 24830-24900 zone. Sector rotation is helping the index to stay at elevated levels. A negative divergence is developing on the momentum indicator so the up move is likely to be slow and might encounter intraday pullbacks. In terms of levels, 24550-24500 shall act as a crucial support zone and on the upside 24900-24960 shall act as an immediate hurdle from a short-term perspective,” said Jatin Gedia of Sharekhan.
Tejas Shah of JM Financial & BlinkX said, “The short-term moving averages are just below the price action and should continue to support the indices on every decline. Support for Nifty is now seen at 24,650 and 24,500 levels. On the higher side, immediate resistance for Nifty is at 24,850 level and the next resistance is at 25,000. Overall, till this higher high syndrome continues one should not fight the trend.”
That said, here’s a look at what some key indicators are suggesting for Thursday’s action:
US market:
The S&P 500 and Nasdaq ticked up on Wednesday as a significant downward revision in U.S. jobs data for the year ending in March suggested a slowdown in the labor market, raising hopes for an interest rate cut by the Federal Reserve next month.
The Labor Department reported that U.S. employers added far fewer jobs than previously estimated for the year through March.
Financial markets now see a nearly 70% chance of a 25 basis-point rate cut by the Fed in September, according to CME’s FedWatch tool. Eight of the 11 major S&P sectors were higher, with materials and energy leading the advance.
European stocks:
European shares inched higher on Wednesday, driven by gains in automobile stocks, as investors awaited the minutes from the U.S. Federal Reserve’s July meeting to assess the future of global monetary policy.
The pan-European STOXX 600 index ended 0.3% up, breaking a five-day winning streak on Tuesday, with all major regional bourses showing gains. The automobile sector led the advance with a 1.4% rise, marking its seventh consecutive day of gains, while basic resources increased by 0.9%.
Tech View:
Nifty ended Wednesday’s session 71 points stronger to form a reasonable positive candle on the daily chart. The headline index is still making a higher high both on the daily and weekly charts.
The short term trend of Nifty continues to be positive with range-bound action. The market is now set to challenge another opening down gap resistance of 2nd August around 24960. Hence, one may expect the index to move towards 24960 and 25100 levels in the next one week. Immediate support is placed at 24650 levels, said Nagaraj Shetti of HDFC Securities.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Nuvama Wealth Management, OFSS, CAMS, Persistent Systems, Bombay Burmah Trading Corporation, and Bajaj Holdings & Investment 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 Cera Sanitaryware, V-Mart Retail, Torrent Pharma, Natco Pharma, and Granules India 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:
Mazagon Dock Shipbuilders (Rs 4,242 crore), HDFC Bank (Rs 3,869 crore), Nykaa (Rs 2,295 crore), ICICI Bank (Rs 2,020 crore), Angel One (Rs 1,956 crore), PNB Housing (Rs 1,335 crore), and SBI (Rs 1,190 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: 24.2 crore), Alok Industries (Shares traded: 17.7 crore), Nykaa (Shares traded: 10.8 crore), YES Bank (Shares traded: 8.3 crore), HFCL (Shares traded: 8 crore), Tata Steel (Shares traded: 4.9 crore), and CESC (Shares traded: 4 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Deepak Fertilisers, Nykaa, Century Textiles, Just Dial, CESC, and GSK Pharma, and Phillips Carbon among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
No major shares hit their 52-week low on Wednesday.
Sentiment meter favours bulls:
Overall, market breadth favoured bulls as 2,607 stocks ended in the green, while 1,345 names settled in the red.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
