Ahead of Market: 12 things that will decide stock action today

NEW DELHI: Asian stock markets were trading mixed on Friday morning. Amid concerns about the economic growth outlook, Nasdaq ended lower last night.

At 7:15 hours (IST), Nifty futures on the Singapore Exchange traded 11 points higher, signalling a likely gap-up start for Dalal Street.

Let’s have a look at the key factors influencing market mood this morning:

Nasdaq ends lower as investors sell Big Tech
The Nasdaq ended lower on Thursday, pulled down by Apple, Amazon and other Big Tech companies as a fall in weekly jobless claims data fed investor concerns about a recent inflation spike. Nvidia tumbled 4.4% and Amazon fell over 1%, both companies contributing more than any others to the Nasdaq’s decline. Facebook lost 0.9%. The Dow Jones Industrial Average rose 0.15% to end at 34,987.02 points, while the S&P 500 lost 0.33% to 4,360.03. The Nasdaq Composite dropped 0.7% to 14,543.13.

Asian markets mixed
Asian stocks were mixed and U.S. equity futures fell early Friday after concerns about the economic growth outlook came to the fore. Japan’s Topix index added 0.1% while Australia’s S&P/ASX 200 index was steady.

F&O: India VIX eases further

India VIX fell 2.54 per cent from 12.59 to 12.27 level. A decline in the VIX has again provided stability to the market to commence the next move. On the options front, maximum Put Open Interest was seen at 15,000 level followed by 15,500, while maximum Call OI was seen at 16,000 followed by 16,200 level. Options data suggested an immediate trading range between 15,700 to 16,000 level and then 16,200 level.

Check out the candlestick formations in the latest trading sessions

Tech View: Nifty50 breaks above 15,900

Nifty50 on Thursday closed above the 15,900 level for the first time and broke above its consolidation range of 15,600-15,900 after 22 sessions. The index formed a small bullish candle on the daily scale and made higher highs and lows for the fourth straight session. Analysts said a breakout like this should ideally push the index to 16,200-16,400 zone in the coming days.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Wipro, PTC India Financial, HCL Technologies, JSW Energy, L&T Finance Holdings, DCB Bank, L&T Technology Services, PC Jeweller, UPL, Hindustan Zinc, L&T Infotech, MindTree, Pricol, Syngene International, Cyient, Alembic, Intellect Design, , Tera Software, ICICI Securities and Ramco Systems, 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 a bullish signal, 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 HFCL,

, Morepen Labs, DCW, Zee Media Corp, Indraprastha Gas, Coffee Day Enterprises, Dilip Buildcon, KCP Sugar, Ugar Sugar Works, Tourism Finance, , Bajaj Consumer Care, Uflex, Godrej Agrovet, Nelco, CCL Products India, Olectra Greentech, , Century Plyboards, Shoppers Stop, Archies, Orient Refractories, Kabra Extrusion, Indoco Remedies, Rama Steel Tubes and Elgi Rubber, among others. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms

L&T Tech (Rs 1,965.75 crore), Wipro (Rs 1,779.16 crore), Infosys (Rs 1,585.10 crore), Happiest Minds (Rs 1,480.98 crore), L&T (Rs 1,455.69 crore), HCL Tech (Rs 1,309.18 crore), Tata Steel (Rs 1,210.45 crore), L&T Infotech (Rs 1,122.55 crore), Just Dial (Rs 931.21 crore) and RIL (Rs 909.85 crore) were among Thursday’s most active stocks on Dalal Street in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers ithe day.

Most active stocks in volume terms

YES Bank (Shares traded: 18.44 crore), Suzlon Energy (Shares traded: 8.71 crore), Vodafone Idea (Shares traded: 6.83 crore), Reliance Communication (Shares traded: 6.64 crore), JP Power (Shares traded: 5.34 crore), SAIL (Shares traded: 3.84 crore), PNB (Shares traded: 3.21 crore), Wipro (Shares traded: 3.11 crore), (Shares traded: 3.07 crore) and Bank of Baroda (Shares traded: 3.03 crore) were among Thursday’s most traded stocks in the session.

Stocks seeing buying interest

Sobha, L&T Tech, Happiest Minds, JSW Energy and Mastek witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling

bullish sentiment.

Stocks seeing selling pressure

Suryoday Small Finance Bank and SVP Global Ventures witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.

Sentiment meter favours the bulls

Overall, the market breadth remained in favour of the bulls. As many as 221 stocks on the BSE500 idex settled the day in the green, while 276 settled the day in the red.

Podcast: How to play the IT theme now?
Major IT companies have reported stellar Q1 numbers. How should investors play the IT theme post the strong management commentaries? Will Nifty Bank manage to cross the 36,000 level in the coming days? What are the tech charts signalling?

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