The Nifty 50 index closed 0.42% higher to 24,854 points, after hitting a two-month low earlier in the session, while the S&P BSE Sensex added 0.27% to 81,224.
Here’s how analysts the market pulse:
“The Nifty has moved up sharply after forming a panic bottom around 24,570, failing to sustain below 24,700. On the hourly chart, a positive divergence is visible on the RSI (14), indicating a shift toward positive price momentum. Immediate resistance is seen at 24,900, which previously acted as support. A decisive move above 24,900 could induce a short-term rally. The trend is likely to remain strong as long as the Nifty stays above 24,750,” said Rupak De of LKP Securities.
Tejas Shah of JM Financial & BlinkX, said, “As long as Nifty is holding above 24,700 Mark, there is no major sense of panic as of now. Support for Nifty is now seen at 24,700-750 and 24,500. On the higher side, immediate psychological resistance for Nifty is at 25,000 Mark and the next crucial resistance zone is at 25,250-300 levels. Overall, the market is oversold but still in the grip of the bears and hence one should not be too adventurous until some uptick is seen.”
That said, here’s a look at what some key indicators are suggesting for Friday’s action:
US market:
The Dow Jones Industrial Average and S&P 500 chalked up record closing highs on Friday, with the Nasdaq also in positive territory, as markets were boosted by an earnings-driven jump in Netflix shares and broader gains across technology stocks.All three major Wall Street benchmarks also comfortably secured a sixth straight weekly gain, their longest weekly winning streaks since late 2023.For the week, the S&P 500 gained 0.9%, the Nasdaq Composite advanced 0.8%, and the Dow Jones Industrial Average climbed 1%.
European shares:
Europe’s STOXX 600 ended higher on Friday, as tech stocks made a strong comeback at the end of a bumpy week, while the European Central Bank’s rate cut and a flurry of corporate earnings helped the index deliver a second straight week of gains.
The STOXX 600 closed up 0.2% as the tech sector led gains with a 2% jump.
Tech View:
A reasonable positive candle was formed on the daily chart with a minor lower shadow. Technically, this pattern is indicating a short-term reversal in the market on the upside post-downward correction. The chart pattern of Friday signals the formation of a bullish piercing line-type pattern.
Friday’s sustainable upmove from the lows could be a cheering factor for the Bulls to make a comeback. Follow-through upmove from here is expected to confirm a crucial bottom reversal pattern. Immediate support is at 24,500 and the next overhead resistance is placed around 24,950-25,000 levels, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,000 and 24,900 strike prices, while on the put side, the highest OI was at 24,800 strike price followed by 24,700.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Aditya Birla Real Estate, Tejas Networks, Zee Entertainment Enterprises, Wipro, IDBI Bank, and Bank of Baroda 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 BSE, Varun Beverages, Olectra Greentech, Varroc Engineering, Lloyds Metals, and DB Realty Express 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 Shipbuilders (Rs 3,830 crore), Zomato (Rs 2,819 crore), Axis Bank (Rs 2,469 crore), BSE (Rs 2,461 crore), HDFC Bank (Rs 2,077 crore), Wipro (Rs 2,048 crore), and Infosys (Rs 1,991 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:
Zomato (Shares traded: 10.8 crore), Manappuram Finance (Shares traded: 8 crore), JP Power (Shares traded: 7.2 crore), YES Bank (Shares traded: 5.7 crore), Zee Entertainment Enterprises (Shares traded: 4.1 crore), Wipro (Shares traded: 3.7 crore), and Suzlon Energy (Shares traded: 3.6 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Motilal Oswal, Aditya Birla Real Estate, Anand Rathi Wealth, DOMS Industries, MCX India, NALCO, and Torrent Power 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 Ujjivan Small Finance Bank, Easy Trip Planners, and Zee Entertainment Enterprises hit their 52-week lows, signaling bearish sentiment on the counter.
Sentiment meter bears:
Overall, market breadth favoured bears as 1,839 stocks ended in the green, while 2,110 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)
