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NEW DELHI: Market continues to be choppy as battle between bulls and bears goes on. There are a lot of stock specific reactions that the market is seeing thanks to the ongoing earnings season. The surprise RBI rate hike may also bleed rate sensitive stocks. Analysts advise caution.

Here’s how analysts read the market pulse:-

A long bear candle was formed on the daily chart that decisively broke below the important support of 16,900-16,800 level, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Mazhar Mohammad of Chartviewindia.in said that the index has breached critical supports placed around 16,850 and if the downward spiral continues, the weakness shall eventually extend towards its logical target of 16,159 level.

That said, here’s a look at what some key indicators are suggesting for Thursday’s action:

US stocks tread water ahead of Fed announcement

Wall Street stocks were little changed early Wednesday ahead of a highly anticipated Federal Reserve decision as markets digested disappointing hiring data and mixed earnings.

The Fed is widely expected to fortify its efforts to combat inflation with a rare half-percentage point interest rate hike as investors ponder the chances of even tougher action at subsequent meetings. About 10 minutes into trading, the Dow Jones Industrial Average was flat at 33,135.32.

The broad-based S&P 500 was also unchanged at 4176.10, while the tech-rich Nasdaq Composite Index slipped 0.1 percent to 12,549.42.

European stocks close lower

European stocks closed lower on Wednesday as global investors awaited a crucial monetary policy decision from the US Federal Reserve. The pan-European Stoxx 600 closed down by 1%.

Tech View: Bearish candle

Nifty50 on Wednesday slipped below its 50-day simple moving average (SMA) at open after falling below the 200-day simple SMA the previous session. It breached strong support, which was present at the lower end of the 16,700-17,300 range and ended up forming a long bearish candle on the daily chart. Analysts said the chances are good that the ongoing weakness may intensify.

F&O: Resistance at 17,000

As per options data, Nifty has a big support at 16,500 while immediate resistances are spread across 17,800 to 17,000 range.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of DCM Shriram, Sumitomo Chemical and Asahi India Glass.

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 IIFL Finance, Motilal Oswal, Balkrishna Industries, Wabco India, Indigo Paints and Jamna Auto. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks in value terms

Reliance Industries (Rs 2423 crore), HDFC Bank (Rs 2000 crore), Tata Steel (Rs 1784 crore), Bajaj Finance (Rs 1067 crore), HDFC (Rs 1066 crore), Axis Bank (Rs 1047 crore) and Kotak Mahindra Bank (Rs 1029 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

Vodafone Idea (Shares traded: 12 crore), YES Bank (Shares traded: 10 crore), IDFC First Bank (Shares traded: 6 crore), Visesh Info (Shares traded: 4 crore), Zomato (Shares traded: 4 crore) and Suzlon Energy (Shares traded: 4 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest

Sumitomo Chemical, MRPL, Indian Hotels and NLC India witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure

Info Edge, Dhani Services, Tata Communication, Solara Active Pharma, 3M India, Infibeam Avenue and Zomato 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 734 stocks ended in the green, while 2,645 names settled with cuts.



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