The Nifty 50 inched up 0.07% to close at 24,998, while the S&P BSE Sensex gained 0.18%, settling at 81,611. Both indices had risen around 0.6% earlier in the session.
Meanwhile, Friday’s trade may see some negative impact as U.S. inflation data for September came in higher than expected, potentially reducing the likelihood of further interest-rate cuts this year. A report from the U.S. Labor Department showed the Consumer Price Index (CPI) rose 2.4% year-on-year, compared to an estimate of 2.3%. On a monthly basis, the CPI increased by 0.2%, versus expectations of a 0.1% rise.
Here’s how analysts read the market pulse:
“The index remained largely sideways throughout the day as the 25,000 level was mostly held. On the daily chart, the index has been failing to reclaim 50EMA for the last two days, indicating prevailing weakness. On the lower end, support is placed at 24,950–24,900. A fall below 24,900 could trigger a correction toward 24,750–24,700. On the other hand, resistance is seen at 25,150, and a move above this level could push the index towards 25,350–25,400 in the short term,” said Rupak De, LKP Securities.Hrishikesh Yedve of Asit C Mehta Investment Interrmediates, said, “Technically, on the daily chart, the index formed a small red candle, indicating selling pressure at higher levels. However, the index is still holding above the low of the insider bar candle. Thus, as long as the index holds above the low of 24,690, levels of 25,150–25,350 could be possible. However, a close below 24,690 could lead to a fresh breakdown.”
That said, here’s a look at what some key indicators are suggesting for Friday’s action:
US market:
U.S. stocks are pulling back from their record highs on Thursday, with Treasury yields fluctuating after two reports revealed that inflation didn’t improve as expected last month and more workers applied for unemployment benefits last week.
As of 10:30 a.m. Eastern time, the S&P 500 was down 0.2%, the Dow Jones Industrial Average had dropped 97 points (also 0.2%) after hitting an all-time high the day before, and the Nasdaq Composite was down 0.2%.Stocks had surged to record levels largely due to optimism about easing interest rates, as the Federal Reserve begins to cut rates from their two-decade peak, shifting its focus to sustaining economic growth rather than solely combating high inflation.
European stocks:
European shares finished lower on Thursday, driven down by losses in the defense and industrial sectors, following data indicating a slight uptick in U.S. inflation. Investors are also anticipating the unveiling of France’s 2025 budget.
The pan-European STOXX 600 index declined by 0.2%, with defense, industrials, and technology stocks each dropping over 1%.
Yields on the German 10-year bond, typically sensitive to U.S. data, narrowed their losses but remained at a one-month high, putting additional pressure on equities.
Tech View:
The Nifty formed an inside day pattern on its daily chart, which is formed when the price trades within the high and low range of the previous day. Hence one needs to wait and watch, till the high (25,134) or low (24,979) of today’s daily candle is taken out for further direction on Nifty.
At the current juncture, the bears are in full control of the markets and are using every pullback rally to create short positions. Support for Nifty is now seen at 24,950-25,000 and 24,750. On the higher side, immediate resistance is at 25,100 levels and the next resistance zone is at 25,250-275 levels, Tejas Shah of JM Financial & BlinkX.
In the open interest (OI) data, the highest OI on the call side was observed at 25,000 and 25,050 strike prices, while on the put side, the highest OI was at 25,000 strike price followed by 24,950.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Dixon Technologies, Trent, Page Industries, Info Edge, Akzo Nobel, Divi’s Laboratories, Strides Pharma Science, Paytm, and Anand Rathi Wealth 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 JSW Steel, Hindalco Industries, Surya Roshni, and Grasim Industries 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:
Mazagon Dock Ship (Rs 3,271 crore), RIL (Rs 3,073 crore), HDFC Bank (Rs 1,794 crore), BSE (Rs 1,484 crore), Tata Chemicals (Rs 1,441 crore), Tata Motors (Rs 1,235 crore), and ICICI Bank (Rs 1,134 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:
JP Power (Shares traded: 28.3 crore), Suzlon Energy (Shares traded: 7.1 crore), YES Bank (Shares traded: 5.4 crore), Tata Steel (Shares traded: 4.6 crore), Zomato (Shares traded: 3.8 crore), Easy Trip Planners (Shares traded: 3.5 crore), and Tata Teleservices (Shares traded: 3.3 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of ABB Power, Gujarat Fluorochemicals, Apar Industries, CG Power & Industrial Solutions, Anant Raj, MCX India, and Dixon Technologies 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 CreditAccess Grameen hit their 52-week lows, signaling bearish sentiment on the counter.
Sentiment meter bulls:
Overall, market breadth favoured bulls as 2,199 stocks ended in the green, while 1,730 names settled 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)
