12 things that will decide stock action on Thursday
Rohit Singre of LKP Securities said Nifty’s support exists near the 11,050-11,000 zone and any break below can drag the index down. While the key resistance is placed in the 11,200-12,240 zone.
“Volatility is expected to continue due to weekly options expiry tomorrow,” said, Vinor Nair of Geojit Financial Services.
Whereas, Ajit Mishra of Religare Broking said,” It would wait more data on how demand and economic recovery is panning out. Traders should maintain positions on both sides and limit leveraged trades.”
Key indicators suggesting for Thursday’s action are:
Tech stocks boost US shares:
US stocks rose on Wednesday as a boost from technology stocks. The Dow Jones Industrial Average was up 22.35 points, or 0.08%, at 26,862.75 and the S&P 500 was up 3.33 points, or 0.10%, at 3,260.63. The Nasdaq Composite was up 17.90 points, or 0.17%, at 10,698.26
European stocks fall as US-China tensions spike:
After the EU-wide debt deal along with China-US tensions and surge in COVID-19 cases, the regional markets were sent to four-month highs in the previous session.
Tech View: No confirmation of trend reversal
The NSE barometer formed a ‘Hanging Man’ pattern on the daily chart. It also indicated that the supports were shifting below.
F&O: Nifty range shifts to 10,800-11,300
India VIX moved up by 1.86 percent to 24.88 level. Overall lower volatility is supporting the bullish stance with a higher market base. There was Call writing at 11,200 and 11,500 levels, while Put writing was seen at 11,000 and 11,100. Options data suggested an immediate trading range between 10,800 and 11,300 levels.
Stocks showing a bullish bias:
MACD showed bullish trade setup on the counters of Axis Bank, Power Grid, Manappuram Finance, HDFC Bank, NMDC, Power Finance, Adani Enterprises, UPL, PVR, Escorts, IndiaMART InterMESH, Inox Leisure, HEG, NLC India, Balaji Telefilms, Superhouse, D B Realty, Nesco, Oberoi Realty, Asian Granito India, Williamson Magor and Sastasundar Ventures, among others.
Stocks signalling weakness ahead:
The MACD showed bearish signs on the counters of M&M Finance, Sterlite Technologies, Marksans Pharma, SBI Life Insurance, PTC India Financial, Asian Paints, Emami, Colgate Palmolive, Precision Camshafts, MSTC, BSE, HSIL, Allcargo Logistics, KCP, Sonata Software, D-Link (India), Tata Communications, Persistent Systems, Man Industries, VLS Finance, Atul Auto, Jayshree Tea, Sagardeep Alloys, Spandana Sphoorty, Metropolis Healthcare, Nucleus Software, Saregama India Ltd., VST Industries and M Forgings. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms:
Bajaj Finance (Rs 5573.55 crore) , RIL (Rs 5497.91 crore) , Axis Bank (Rs 4222.92 crore) , ICICI Bank (Rs 1737.90 crore) , HUL (Rs 1574.10 crore) , Bajaj Finserv (Rs 1390.59 crore) , HDFC Bank (Rs 1390.17 crore) , Infosys (Rs 1322.38 crore) , M&M Finance (Rs 1269.04 crore) and SBI (Rs 1199.84 crore) were among the most active stocks on Dalal Street on Wednesday in value terms.
Most active stocks in volume terms:
Vodafone Idea (shares traded: 50.53 crore) , Axis Bank (shares traded: 8.96 crore) , M&M Finance (shares traded: 8.32 crore) , SBI (shares traded: 6.23 crore) , TV18 Broadcast (shares traded: 6.08 crore) , Federal Bank (shares traded: 5.83 crore) , Tata Motors (shares traded: 5.07 crore) , Vedanta (shares traded: 5.06 crore) , YES Bank (shares traded: 4.77 crore) and ICICI Bank (shares traded: 4.55 crore) were among the most traded stocks in the session.
Stocks seeing buying interest:
Muthoot Finance, Laurus Labs, Dixon Technologies (India), Jubilant Life and Escorts witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Wednesday signalling bullish sentiment.
Stocks seeing selling pressure:
Aarti Surfactants, B.C. Power Controls, Sumit Woods and Mittal Life Style witnessed strong selling pressure in Wednesday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bears:
Overall, market breadth remained in favour of bears. As many as 182 stocks on the BSE 500 index settled the day in green, while 311 settled the day in red.