Here’s how analysts read the market pulse:-
“The overall structure suggests that the index is likely to stay on the downward trajectory for the short term and is expected to break the swing low of 16,824 and tumble towards 16,600 in the short term,” said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas.
Rajesh Bhosale, Technical Analyst at Angel One, said it would be crucial to see how things pan out in the coming session and if the Nifty sustains below 16,900, then one should brace up for challenging times going ahead where 16,600 and below levels may be retested .
That said, here’s a look at what some key indicators are suggesting for Friday’s action:
Wall Street slides on global slowdown fears
US stock indexes fell on Monday, extending a sharp selloff from last week as fears over China’s COVID-19 outbreaks spooked investors already worried about faster US interest rate hikes denting economic growth.
At 10:03 am ET, the Dow Jones Industrial Average was down 415.23 points, or 1.23%, at 33,396.17, the S&P 500 was down 56.93 points, or 1.33%, at 4,214.85, and the Nasdaq Composite was down 104.93 points, or 0.82 %, at 12,734.36.
European stocks slide to 1-month low
Commodity stocks slumped 6% on Monday, leading sharp declines across European stock indexes as worries about an economic slowdown in China and rapid US interest rate hikes overshadowed relief from French Presidential election results.
As investors flocked to the safety of bonds, the continent-wide STOXX 600 index dropped 1.8% to close at its lowest since mid-March.
China-exposed sectors such as miners, oil & gas and luxury stocks were among the top decliners as fears grew that Beijing was on the verge of joining Shanghai in pandemic-related lockdowns.
Tech View: Bearish candle
NSE Nifty formed a bearish candle on daily charts closing below the psychological level of 17,000. Technical setup suggests the index may travel to as low as 16,600 in near term.
F&O: Resistance at 17,000
Major support exists at 17,900 while major resistances are placed at 17,000, followed by 17,200 as a huge number of Calls have been written there.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Aditya Birla Capital, Colgate Palmolive, Minda Industries and Sterlite Tech.
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 AstraZeneca, Axis Bank, Bajaj Electricals, Equitas Small Finance, M&M Financial and IndiGo Paints. Bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.
Most active stocks in value terms
ICICI Bank (Rs 2,677 crore), Reliance Industries (Rs 2,135 crore), Adani Wilmar (Rs 1,627 crore), HDFC Bank (Rs 1,416 crore), Infosys (Rs 1,093 crore), Tata Steel (Rs 892 crore) and Adani Ports ( Rs 876 crore) were among the most active stocks on Dalal Street 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
Vodafone Idea (Shares traded: 13 crore), Visesh Info (Shares traded: 9 crore), YES Bank (Shares traded: 8 crore), Renuka Sugars (Shares traded: 7 crore), Future Consumer (Shares traded: 7 crore) and SAIL (Shares traded: 5 crore) were among the most traded stocks in the session on NSE.
Stocks showing buying interest
Vinati Organics and Borosil Renewables witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure
HDFC AMC and Pfizer witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.
Sentiment meter favors bears
Overall, market breadth favored losers as 980 stocks ended in the green, while 2,558 names settled with cuts.