Ahead of Market: 10 things that will decide stock action on Friday

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Before ending on a flat note, the domestic equity market fluctuated significantly on both sides amid US-Taiwan tensions and the weekly expiry day. Fear gauge index India VIX surged over 4 per cent. Defensives like IT and pharma managed to outperform.

Here’s how analysts read the market pulse:

Rupak De, Senior Technical Analyst at

, said the momentum indicator RSI is in a bullish crossover. “The trend is likely to remain sideways to negative as long as it remains below 17,500. On the lower end, support exists around 17,100-17,000.”

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the short term uptrend status of Nifty remains intact and there is no indication of any sharp reversal pattern at the highs. “The consolidation with high volatility is likely to continue for the next 1-2 sessions. Immediate support is placed at 17,200 and the strong resistance to be watched at 17,500 levels. A decisive move above the hurdle could pull Nifty towards the next upside trajectory of 17,800 levels.”

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

US market

Wall Street edged lower on Thursday in choppy trading as losses in Apple Inc and energy companies dampened the bullish resolve of the major indexes that had rallied in the previous session to its best in a week.

Apple weighed the most on the S&P 500 and the Nasdaq, shedding 0.4%, a day after surging 3.8%, while the energy sector fell 1.6%, tracking lower oil prices on fears of a slowdown in demand.

European shares
European stocks rose Thursday as the Bank of England delivered its biggest interest rate hike in 27 years and traders tracked Chinese military drills around Taiwan.

Although economists had anticipated the 0.50-percentage point rise, the UK central bank also grimly predicted the country would dip into a lengthy recession later in the year

Tech View: Nifty faces hurdle at 17,500
Nifty50 ended up forming a small bearish candle on the daily chart, with a long lower wick. Analysts said the index turned sideways after the recent rally and expect it to find support around 17,200 level. They see resistance for the index at 17,500.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of

, Kalyan Jewellers,

, Lupin, Blue Star and ABB Power.

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 Thyrocare,

,

, Finolex, Mastek and Nesco. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.

Most active stocks in value terms
RIL (Rs 1,715 crore), Tata Consumer (Rs 1,214 crore), Infosys (Rs 1,180 crore), SBI(Rs 963 crore),

(Rs 910 crore), and Hindalco (Rs 881 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 highest trading turnovers in the day.

Most active stocks in volume terms

(Shares traded: 7.9 crore), Hindalco (Shares traded: 2.1 crore),

(Shares traded: 1.8 crore), SBI (Shares traded: 1.8 crore), ITC (Shares traded: 1.6 crore) and NTPC (Shares traded: 1.6 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of

,

,

, Adani Gas,

, JK Paper and

witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure
Shares of

and

witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on the counters.

Sentiment meter favours bears

Overall, market breadth favoured losers as 1,484 stocks ended in the green, while 1,859 names settled with cuts.

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