Ahead of Market: 12 things that will decide stock action on Friday

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NEW DELHI: Buying continued on Dalal Street for a second session as a dip in US bond yield and cooling off in valuations attracted investors. Earnings will be key, said analysts, going forward.

Here’s how analysts read the market pulse:-

Mazhar Mohammad of Chartviewindia.in said a follow up to Wednesday’s Harami-kind of reversal formation is confirming a near term bottom at the recent low of 16,824 level.

Sameet Chavan of Angel One said that a close near the highest point of the day augurs well for the bulls.
That said, here’s a look at what some key indicators are suggesting for Friday’s action:

Wall Street rises on strong earnings
The Nasdaq led Wall Street’s main indexes higher on Thursday, lifted by a surge in Tesla shares, with airline stocks providing added boost after United Airlines and American Airlines forecast a return to profitability in the current quarter.

The Dow Jones Industrial Average rose 98.0 points, or 0.28 per cent, at the open to 35258.8. The S&P 500 rose 29.7 points, or 0.67 per cent, at the open to 4489.17, while the Nasdaq Composite rose 170.6 points, or 1.27 per cent, to 13623.704 at the opening bell.

European stocks close higher
European stocks closed higher on Thursday as investors digested a fresh batch of corporate earnings and kept an eye on developments in the war between Russia and Ukraine.
The pan-European Stoxx 600 index closed up by 0.3%, with industrials rising 1.9% to lead the gains as most sectors and bourses finished in positive territory.

Tech View: Bullish candle
Nifty50 formed a bullish candle on the daily chart and moved above its 200-day moving average. A gap-up start and a follow-up buying to a Wednesday’s reversal candle is a positive sign and more upside is in the offing.

F&O: Support at 17,300
Major support exists at 17,350 and 17,300, while a major resistance is placed at 17,500 as a huge a number of Calls have been written there.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed a bullish trade setup on the counters of Angel Broking, PNC Infratech, Gland Pharma, Apollo Tyres, Trident Industries and Balkrishna Industries.

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 Kalyan jewellers, JK Lakshmi Cement, IGL, Sun TV, Solara Active Pharma and REC. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.

Most active stocks in value terms
HDFC Bank (Rs 3575 crore), Reliance Industries (Rs 2779 crore), Angel One (Rs 1349crore), Infosys (Rs 1255 crore), Adani Wilmar (Rs 1227 crore), HDFC (Rs 1199 crore) and Tata Elxsi (Rs 1099 crore) were among the most active stocks on Dalal Street in value terms. Higher activity on a counter in value terms can help identify the counters with the highest trading turnovers in the day.

Most active stocks in volume terms
Vodafone Idea (Shares traded: 9 crore), YES Bank (Shares traded: 8 crore), Future Consumer (Shares traded: 7 crore), L&T Financial Holdings (Shares traded: 5 crore), Coal India (Shares traded: 4 crore) and Suzlon Energy (Shares traded: 4 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Angel Broking, Welspun Corp, Adani Enterprises, NLC India, Coal India and Gujarat Alkalies witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.

Stocks seeing selling pressure
No stock witnessed strong selling pressure and hit its 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured gainers as 2,276 stocks ended in the green, while 1,145 names settled with cuts.

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