Ahead of Market: 10 things that will decide D-Street action on Thursday

Indian benchmark Nifty 50 snapped a seven-day losing streak on Tuesday, led by gains in HDFC Bank and Mahindra & Mahindra. Analysts attributed the rise in both benchmarks to a short-term relief rally after shares recently slipped into correction territory.

The NSE Nifty 50 rose 0.28% to 23,518, ending its longest losing streak since February 28, 2023. The BSE Sensex gained 0.31% to 77,578 after a four-session decline. While the benchmarks rose by about 1.4% during the session, they pared most of the gains in the final hour.

Indian equity markets remained closed on Wednesday due to the Maharashtra Assembly elections.

Here's how analysts the market pulse:

"Currently, Nifty is finding support around the 200-Day Moving Average, which is positioned near the 23,500 mark (+/- 50 points), with support levels at 23,350 and 23,200. On the upside, immediate resistance for Nifty lies between 23,600 and 23,650, with the next resistance at around 23,800. In the near term, Nifty is likely to remain volatile within the 23,200–23,800 range," said Tejas Shah, JM Financial & BlinkX.

Jatin Gedia of Sharekhan added, "Nifty closed positively, up 65 points, but well off the intraday highs, indicating difficulty in sustaining higher levels. The 40-hour average (23,733) acted as a strong resistance. Until the index sustains above this, we maintain a negative stance. The hourly momentum indicator has completed a pullback cycle, suggesting the pullback is over, and the next leg of decline could begin. On the downside, we expect 23,180, which aligns with the 61.82% Fibonacci retracement level."

With that, here’s a look at what some key indicators suggest for Thursday’s action:

US market:
Wall Street's main indexes were little changed on Wednesday, as investors awaited AI giant Nvidia's quarterly results, while also eyeing rising geopolitical tensions between Russia and Ukraine.

The Dow Jones Industrial Average rose 27.1 points, or 0.06%, at the open to 43,296.05.

The S&P 500 fell 2.6 points, or 0.04%, at the open to 5,914.34, while the Nasdaq Composite dropped 16.2 points, or 0.09%, to 18,971.311 in early trade.

European shares:
Europe's main stock index was set to snap a three-session streak of declines on Wednesday as technology stocks rebounded, while safe-haven bids took a backseat as investors monitored ongoing developments around the Ukraine-Russia conflict.

A day after Russia lowered its threshold for a nuclear strike, Reuters reported Vladimir Putin's openness to discuss a Ukraine ceasefire deal with U.S. President-elect Donald Trump, provided it rules out major territorial concessions and Kyiv abandons plans to join NATO.

The pan-European STOXX 600 was up 0.5% as of 0920 GMT, after touching a three-month low on Tuesday amid an investor rush to safe-haven assets.

Main bourses in Germany, France, and Spain advanced between 0.4% and 0.9%.

Tech View:
Technically, the index formed a doji candle on the daily chart, indicating uncertainty. The high of the doji is approaching the 23,780 level, which will act as critical resistance. On the downside, the 50-weekly simple moving average (WSMA) near 23,300 provides short-term support. The short-term trend remains bearish as long as the index stays below 23,800, according to Hrishikesh Yedve of Asit C Mehta Investment Intermediates.

Open interest (OI) data shows the highest OI on the call side at 23,500 and 23,600 strike prices, while on the put side, the highest OI is at 23,500, followed by 23,400.

Bullish Stocks:
The MACD indicator showed bullish signals for Craftsman Automation, Triveni Turbine, Zee Entertainment, Netweb Technologies, Kalyan Jewellers, and PTC Industries. A bullish crossover in the MACD indicates potential upward movement.

Weak Stocks:
The MACD showed bearish signals for Page Industries, Rashtriya Chemicals, Tanla Platforms, HCL Tech, L&T, and Rainbow Children's Medicare, suggesting potential downward movement.

Most Active Stocks (Value Terms):
HDFC Bank (Rs 4,433 crore), Axis Bank (Rs 2,170 crore), RIL (Rs 1,794 crore), M&M (Rs 1,545 crore), ICICI Bank (Rs 1,443 crore), Zomato (Rs 1,166 crore), and BSE (Rs 1,116 crore) were among the most active stocks by value.

Most Active Stocks (Volume Terms):
Vodafone Idea (33.8 crore shares), Suzlon Energy (7.4 crore), YES Bank (5.7 crore), Zee Entertainment (5.4 crore), GMR Infra (4.3 crore), Zomato (4.2 crore), and Tata Steel (3.7 crore) were the most traded stocks by volume.

Stocks with Buying Interest:
Federal Bank, Indian Hotels, ABSL AMC, Fortis Healthcare, Coforge, and Mastek saw strong buying interest, hitting fresh 52-week highs, signaling bullish sentiment.

Stocks with Selling Pressure:

Honasa Consumer, Vodafone Idea, IGL, Ujjivan Small Finance Bank, IndusInd Bank, Star Health, and Akums Drugs reached their 52-week lows, signaling bearish sentiment.

Market Sentiment:
The market breadth favored the bulls with 2,410 stocks closing in the green, while 1,559 stocks ended in the red.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)