The 30-share BSE benchmark Sensex declined 984 points or 1.25% to settle at 77,690. The broader NSE Nifty dropped 324 points or 1.36% to end at 23,559.
Meanwhile, the US consumer inflation, released after market hours, rose to 2.6% in October from a year ago, up from 2.4% in September, the Labor Department said in a statement. This increase aligned with analysts’ forecasts.
Here’s how analysts read the market pulse:
“The index has slipped sharply due to strong selling by major players. The Nifty has fallen toward its 200DMA, breaching the support level at 23,800. Immediate support is now at 23,500, and a fall below this level could trigger further correction toward 23,300–23,200. On the higher end, resistance is positioned at 23,750,” said Rupak De of LKP Securities.Shrikant Chouhan of Kotak Securities, said, “The 200 day SMA (Simple Moving Average) or 23,500 would act as a sacrosanct support zone. Above the same, we could expect one technical bounce back till 23,800-23,850. On the flip side, a fresh selloff is possible only after the dismissal of 23,500. Below this, it could slip to 23,380-23,350.”That said, here’s a look at what some key indicators are suggesting for Thursday’s action:
US market:
Wall Street’s main indexes edged higher on Wednesday after consumer price inflation data came in as expected, reinforcing expectations for another U.S. Federal Reserve interest rate cut in December. The consumer price index (CPI) rose 0.2% in October, marking the fourth consecutive month of gains, with a 2.6% annual increase. Excluding food and energy, the CPI rose 0.3%.Small-cap stocks, tracked by the Russell 2000 index, jumped 0.9%, while the real estate sector gained 1.3%. Consumer discretionary shares also helped lift the benchmark index, driven by a 4% rise in Tesla shares after CEO Elon Musk was appointed co-leader of a new government department.However, communication services stocks fell 0.5%, pressured by a ruling for Meta Platforms to face an antitrust trial.
European stocks:
European shares ended Wednesday on a dour note, with the STOXX 600 closing at a three-month low as rising energy shares countered real estate losses, while focus remained on a U.S. inflation print that could alter market expectations about the Federal Reserve’s interest rate path.
The pan-European STOXX 600 index closed down 0.1% at 501.59 points, its lowest level since Aug 13.
Most regional bourses also ended lower, with Germany’s DAX losing 0.2%, while France’s CAC 40 was down 0.1%. Heavyweight technology stocks were among the major sub-sector decliners, dropping 1%, while autos fell 1%. Rate-sensitive real estate stocks were the biggest drag on the index, losing 1.4%. Energy stocks, however, added 1.3%.
Tech View:
Technically, the index broke last week’s low, which was near 23,816 and sustained below 23,800, triggering a fresh breakdown. Due to heavy selling pressure, the index has tested its 200-day exponential moving average (DEMA) support which is placed around 23,540. The index ended up forming a bearish candle.
A strong break below 23,500, will push the index further lower to 23,300-23,200 levels, where the trend line support is placed. Overall, market sentiment appears to be negative, but we’ll have to see how the Nifty behaves around the 200-DEMA support, said Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates.
In the open interest (OI) data, the highest OI on the call side was observed at 23,700 and 23,600 strike prices, while on the put side, the highest OI was at 23,500 strike price followed by 23,400.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Aditya Vision, and Heubach Colorants 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 Dixon Technologies, Crisil, BSE, Gillette India, BEML, Anup Engineering, and 3M India Trading Corporation 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:
HDFC Bank (Rs 3,036 crore), PNB Housing (Rs 2,941 crore), RIL (Rs 1,841 crore), BSE (Rs 1,670 crore), Zomato (Rs 1,592 crore), ICICI Bank (Rs 1,546 crore), and Tata Motors (Rs 1,152 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:
Vodafone Idea (Shares traded: 42.4 crore), Suzlon Energy (Shares traded: 19.4 crore), YES Bank (Shares traded: 8 crore), Zomato (Shares traded: 6.1 crore), JP Power (Shares traded: 5.9 crore), Tata Steel (Shares traded: 5.7 crore), and Samvardhana Motherson (Shares traded: 4.5 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
No major stocks hit their 52-week highs on Wednesday.
Stocks seeing selling pressure:
Shares of GNFC, Ujjivan Small Finance Bank, Mahindra Lifespace, Delhivery, Birla Corp, Equitas Small Finance Bank, and SRF hit their 52-week lows, signaling bearish sentiment on the counter.
Sentiment meter bears:
Overall, market breadth favoured bears as 3,384 stocks ended in the red, while 599 names settled in the green.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
