Market experts suggest the benchmark indices will continue to remain under pressure in the near term and there is no relief for the investors, thanks to rising inflation and interest rates.
Here’s how analysts read the market pulse:-
Nagaraj Shetti, Technical Research Analyst at HDFC Securities said the short term trend for Nifty50 continues to be negative and there is a possibility of further weakness towards the 15,670 level.
As far as the Nifty Bank is concerned, Chandan Taparia of Motilal Oswal Securities said the index formed an Inside Bar and a Bearish candle on the daily scale.
That said, here’s a look at what some key indicators are suggesting for Friday’s action:
US stocks open lower
Wall Street stocks fell again early Thursday, extending a downward period as markets focus on inflation, tightening monetary policy and the war in Ukraine.
Data on wholesale prices showed that price increases eased in April compared with the prior month but still stand 11 percent higher than a year ago. The broad-based S&P 500 shed 0.8 percent to 3,903.27, while the tech-rich Nasdaq Composite Index dropped 1.1 percent to 11,239.06.
European stocks fall
European stocks slumped on Thursday, with most cyclical parts of the market coming back down, a day after U.S. inflation data fuelled worries about the impact of rising interest rates on economic growth.
The continent-wide STOXX 600 index slid 0.8%, reversing much of the mid-week gains. Technology, automakers and mining stocks were the top losers among sectors.
Tech View: Bearish candle formed
There was no relief for Nifty50, which fell for the fifth straight session on Thursday. The index formed a bearish candle on the daily scale and continued with its lower high-low formation.
F&O: Trend remains negative
The index has been resisting around the ’20 EMA on the hourly charts’ in recent pullbacks and this average has now declined to 16040, said Ruchit Jain, Lead Research.
“The ‘RSI Smoothened’ oscillator has now entered the oversold zone, but in a downtrend markets usually have a tendency to continue its correction in the oversold phase as well,” he added.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of HCL Technologies, Blue Dart Express and Pansari Developers.
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 signalling weakness ahead
The MACD showed bearish signs on the counters of J Kumar Infraprojects, NOCIL, Coromandel International, Home First Finance, Shriram City Union, NDR Auto Components and Mahindra EPC Irrigation. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
Reliance Industries (Rs 2,270.07 crore), HDFC Bank (Rs 1,463.38 crore), Bajaj Finance (Rs 1,395.04 crore), Tata Motors (Rs 1,250.43 crore), ICICI Bank (Rs 1,170.11 crore), Infosys (Rs 1,064.30 crore) and Tata Steel (Rs 1,058.66 crore) 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 the highest trading turnovers in the day.
Most active stocks in volume terms
Tata Motors (Shares traded: 3.35 crore), Hindalco (Shares traded: 2.38 crore), ONGC (Shares traded: 2.14 crore), ITC (Shares traded: 2 crore),
(Shares traded: 1.99 crore), SBI (Shares traded: 1.89 crore) and ICICI Bank (Shares traded: 1.66 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
None of the stocks witnessed buying interest from market participants.
Stocks seeing selling pressure
Punjab National Bank, Sun Pharma Advanced Research, Bank of India, Rain Industries, RBL Bank, AstraZeneca Pharma and IDFC First Bank witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on the counters.
Sentiment meter favours bears
Overall, market breadth favoured losers as 654 stocks ended in the green, while 2,711 names settled with cuts.