Ahead of Market: 12 things that will decide stock action on Thursday

Ahead of Market: 12 things that will decide stock action on Thursday thumbnail
NEW DELHI: An agreement among US policymakers on a massive economic stimulus bill to support America's faltering economy fuelled Indian market on Wednesday, as Sensex and Nifty posted first back to back gains since February 13. BSE Sensex ended at 28,535.78, up 1,861.75 points against the previous close of 26,674.03. Likewise, 50-share Nifty settled 516.80…

NEW DELHI: An agreement among US policymakers on a massive economic stimulus bill to support America’s faltering economy fuelled Indian market on Wednesday, as Sensex and Nifty posted first back to back gains since February 13.
BSE Sensex ended at 28,535.78, up 1,861.75 points against the previous close of 26,674.03. Likewise, 50-share Nifty settled 516.80 points higher at 8,317.85.
Investors shrugged off the 21-day nationwide lockdown announced by Prime Minister Narendra Modi on Tuesday.
Analysts expect high volatility to persist over the next few trading sessions, as concerns over the impact of worldwide lockdowns are expected to keep investors on the edge.
“The market rallied after the nationwide lockdown was announced, mainly driven by financials. Global markets traded in the green, driven by expectations of stimulus measures to support the economies, and not because of any change in ground realities. A much more stable rally can happen only after any news regarding the virus containment comes in,” says Vinod Nair, Head of Research at Geojit Financial Services.
Here’s what indicators are suggesting for the stock market action on Thursday:Wall Street rebound fizzles outUS stocks fell in choppy trading on Wednesday after a strong rebound in the previous session as optimism about an imminent $2 trillion coronavirus package waned, with investors still concerned about the lasting economic hit from the pandemic. At 8.00 PM (IST) Dow Jones Industrial Average was up 147.45 points, or 0.71%, at 20,852.36, the S&P 500 was down 10.96 points, or 0.45%, at 2,436.37 and the Nasdaq Composite was down 70.90 points, or 0.96%, at 7,346.96.
European shares take U-turn on rising death tollEuropean stocks turned choppy again on Wednesday with bourses across the region wiping off most of their early morning gains as a sharp rise in the coronavirus death toll brought back panic. At 8.30 PM (IST), Euro Stoxx 50 was down 0.01 per cent, while Germany’s DAX 30 index was down 0.83 per cent.
Tech View: Nifty charts suggest relief rally to continueNifty on Wednesday gained for the second straight session, the first time since February 13. The index formed a long bullish candle on the daily chart. The 50-pack index not only closed above its 5-Day EMA of 8,254, but also bridged the bearish gap in the 8,159-8,178 zone, which analysts said is a positive sign.
F&O: Nifty rally just a pullback of the correctionNifty50 opened marginally in the red on Wednesday due to the announcement of complete lockdown. But the bulls were active from initial trades, and continued to pull the index higher as the session progressed. As a result, Nifty posted the biggest daily gain since May 2009 and formed a Bullish Marubozu kind of candle on the daily chart on the back of sustained buying throughout the day with strong market breadth.
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Stocks showing bullish biasMomentum indicator Moving Average Convergence Divergence (MACD) on Wednesday showed bullish trade setup on the counters of Oil India, Jammu & Kashmir Bank, Engineers India, JSW Energy, Parag Milk Foods, Texmaco Rail, Liberty Shoes, Zee Learn, RPP Infra Projects, Nelcast, India Power Corp, BASF India, Hubtown, Jiya Eco Products, Mangalam Drugs, Arihant Superstructure, Cinevista, Archidply Industries, Asian Hotels (West) and Vaswani Industries. The MACD is known for signalling trend reversals in traded securities or indices. It is the difference between the 26-day and 12-day exponential moving averages. A nine-day exponential moving average, called the signal line, is plotted on top of the MACD to reflect ‘buy’ or ‘sell’ opportunities. 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.
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Stocks signalling weakness aheadThe MACD showed bearish signs on the counters of Snowman Logistics, Omaxe, IVP and Palash Securities. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value termsRIL (Rs 3521.66 crore), ICICI Bank (Rs 2041.01 crore), HDFC Bank (Rs 1898.11 crore), Axis Bank (Rs 1661.65 crore), HDFC (Rs 1638.30 crore), Bajaj Finance (Rs 1582.28 crore), SBI (Rs 1327.22 crore), IndusInd Bank (Rs 1208.78 crore), Larsen & Toubro (Rs 1125.79 crore) and Infosys (Rs 1094.23 crore) were among the most active stocks on Dalal Street on Wednesday 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 termsVodafone Idea (Shares traded: 12.90 crore), YES Bank (Shares traded: 9.51 crore), SBI (Shares traded: 7.16 crore), ICICI Bank (Shares traded: 6.65 crore), ITC (Shares traded: 6.25 crore), Tata Motors (Shares traded: 5.77 crore), Ashok Leyland (Shares traded: 5.71 crore), Axis Bank (Shares traded: 5.20 crore), IndusInd Bank (Shares traded: 4.03 crore) and RIL (Shares traded: 3.34 crore) were among the most traded stocks in the session.
Stocks showing buyers’ interestRuchi Soya Industries, Bafna Pharmaceuticals and Geekay Wires witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Wednesday signalling bullish sentiment.
Stocks witnessing selling pressureSpandana Sphoorty Financial, Au Small Finance Bank, Aavas Financiers, Cummins India and KIOCL witnessed strong selling pressure in Wednesday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
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