There is a correction seen in mid- and smallcap stocks and it is expected to continue, with regulators urging disclosure of associated risks to AMCs.
Here’s how analysts read the market pulse:
“The overall sentiments remain positive and the index must surpass the 22,400 mark to trigger a new leg of rally. A decisive breakthrough above 22,400 could propel the index towards 22,600. On the downside, support is situated at 22,250-22,200,” said Rupak De, Senior Technical Analyst at LKP Securities.
“In case of any intermediate dip, the 21,900-22,150 zone would cap the downside in the index. Amid all positivity, the price action in the broader indices shows indecisiveness and hence traders should maintain extra caution in midcap and smallcap space and maintain strict stops in the existing positions,” said Ajit Mishra, SVP – Technical Research, Religare Broking.
That said, here’s a look at what some key indicators are suggesting for Saturday’s action:
US Market
Wall Street stocks climbed Thursday as investors assessed a key US inflation gauge, with all three major indices up while the tech-focused Nasdaq Composite Index set a new record.
European shares
European shares kicked off the month higher on Friday, buoyed by strength in global equities after favourable U.S. inflation data, while investors hope for a similar downward trend in euro zone inflation for fresh clues on monetary policy easing.
Tech View: Bullish Marubozu candle
“Nifty closed above the crucial resistance zone of 22,250-300 levels on weekly closing basis and we believe that as long as Nifty is holding above 22,000 mark, the rally is likely to continue and it can test the next resistance zone of 22,450-500 on an immediate basis and eventually Nifty can test level of 22,700 on the higher side,” said Tejas Shah, Technical Research, JM Financial & BlinkX.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Suven Pharma, Tata Steel, Rallis India, Hindustan Copper, JSPL, Price Pipes among others.
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 signaling weakness ahead
The MACD showed bearish signs on the counters of Star Health, Kfin Tech, PNC Infratech, ZEE Entertainment, Lux Ind, and Quess Corp among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
Tata Steel (Rs 333 crore), Tata Motors (Rs 176 crore), HDFC Bank (Rs 128 crore), RIL (Rs 107 crore), L&T (Rs 90 crore), SBI (Rs 89 crore), and Hero (Rs 72 crore) among others 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 highest trading turnovers in the day.
Most active stocks in volume terms
Tata Steel (Shares traded: 2.1 crore), Tata Motors (Shares traded: 17.8 lakh), SBI (Shares traded: 11.5 lakh), Coal India (Shares traded: 10.85 lakh), ITC (Shares traded: 9.77 lakh), HDFC Bank (Shares traded: 8.95 lakh), and ONGC (Shares traded: 8.64 lakh) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Shares of Tata Steel, Adani Ports, Tata Motors, Tata Motors, Tata Consumer, SBI Life, and Adani Enterprises among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure
Shares of Polyplex Corp and KRBL hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favours bulls
The Nifty breadth remained skewed in favour of bulls with 35 stocks ending in the green, 14 in the red while one stock remained unchanged.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
