Indian equities finished in the green, mirroring the optimistic sentiment that prevailed across the globe ahead of the crucial Fed rate decision on the interest rate that will be made later today. The Nifty reached a new high of 17,150, while the Sensex closed at 58,214 levels. The Nifty index saw noteworthy gains from HDFC Life, Bajaj twins, Sun Pharma, and Tata Consumer Products, while notable losses came from BPCL, NTPC, and Coal India, amongst others.
The following is an example of how researchers interpret the market pulse:
“Staying afloat in a volatile trade, the domestic market managed to remain positive, with the optimism that the problem with the global banking system is behind us,” said one analyst. Additionally, market sentiments were put to the test due to the volatility imported from western markets in advance of the announcement of Fed policy and the publication of high inflation data from the UK. According to Vinod Nair, Head of Research at Geojit Financial Services, “the market has factored in a 25 bps rate hike by the Fed, and an in-line and less hawkish policy stance will attract bulls.” The market has already accounted for the rate hike.
“The index will continue to be in a buy-on-dip mode as long as it maintains a value of 17,000 or higher.” The most significant accumulation of open interest has occurred on the option side at 17,200, which represents the most immediate barrier on the upside. Kunal Shah, a senior technical and derivative analyst at LKP Securities, predicted that once the indicator broke through the resistance level, it would experience a sharp move to the upside toward the level of 17,500.
Having said that, the following is a rundown of what several important indicators are pointing to in terms of Thursday’s action:
The status quo prevails on Wall Street
Wall Street is biding its time on Wednesday in anticipation of a pronouncement from the Federal Reserve in the afternoon regarding whether or not it will tighten its grip even further on the economy. The stock market, meanwhile, is remaining unchanged.
During morning trading, there was not much of a movement in the S&P 500. It is coming off of its first back-to-back gain in two weeks, which occurred just before the second and third-largest bank collapses in the history of the United States threw the industry into chaos. As of 10:20 a.m. Eastern time, the Dow Jones Industrial Average was practically unchanged at 32,561 points, and the Nasdaq composite was also basically unchanged.
European equity markets went up with some caution.
Wednesday saw cautious gains across European markets as investors anticipated the latest decision on interest rates from the United States Federal Reserve while also reacting to news that inflation in the United Kingdom had unexpectedly picked up speed. The pan-European Stoxx 600 indicator gained 0.5% during late afternoon trade despite a choppy beginning to the trading day.
The technical perspective shows a small negative candle.
On the daily chart, a small negative candle with an upper and lower shadow developed. This market activity points to the formation of a high wave type candle pattern, from a technical point of view. After a reasonable move to the upside, such patterns typically indicate a reversal of the upside after they have been confirmed.
Companies’ Shares That Have a Bullish Bias
The Moving Average Convergence Divergence (MACD) momentum indicator revealed positive trade on the counters of several financial institutions, including but not limited to BOB, ICICI Bank, IDBI Bank, Aditya Birla Capital, and J&K Bank.
It is common knowledge that the MACD can identify reversals in trends in traded commodities or indices. A bullish signal is generated by the MACD when it crosses above the signal line; this signifies that the price of the investment may experience an upward movement, and a bearish signal is generated when the MACD crosses below the signal line.
Stocks giving an early warning of impending weakening
On the counters of a number of companies, including Steel Authority of India, Power Grid Corporation of India, Ksolves India, Godfrey Phillips, and Chennai Petroleum, the MACD displayed indications that were bearish. These counters had just started their descent when a bearish crossover occurred on the MACD indicator, which suggested that the MACD should be interpreted negatively.
Among the most active stocks in terms of valuation ICICI Bank (with a value of Rs 1493 crore), Infosys (with a value of Rs 1161 crore), RIL (with a value of Rs 1149 crore), HDFC Bank (with a value of Rs 1115 crore), and Paytm (with a value of Rs 798 crore) were among the most active stocks on NSE. Greater activity on a counter measured in terms of value can be used to assist in determining which counters experience the day’s greatest trading turnovers.
Zomato (Shares traded: 3.84 crore), GAIL (Shares traded: 3.61 crore), and Trident (Shares traded: 3.13 crore) were among the most actively traded stocks in terms of volume during the session on NSE. Vodafone Idea (Shares traded: 17.05 crore), YES Bank (Shares traded: 13.96 crore), and Trident (Shares traded: 3.13 crore) were also among the most actively traded stocks.
Companies whose shares are receiving purchasing interest
As a sign of bullish sentiment, share prices of Ion Exchange, KPIT Technologies, and Siemens all scaled new 52-week highs while there was strong buying activity from market participants.
Stocks seeing selling pressure
Bearish sentiment on the counters was indicated by the fact that the share prices of several companies, including Sobha, Caplin Point, GR Infraprojects, Nippon Life AMC, Trident, and Cipla, reached their 52-week lows.
Sentiment meter prefers bulls
The overall market breadth favored bulls, with 1,984 companies closing in the green while 1,523 names closing with losses.
