Ahead of Market: 10 things that will decide stock market action on Friday

Indian equities traded in the deep green before paring some gains on Thursday, with Sensex and Nifty each rising over 0.3%, recovering some of the ground lost in Wednesday's crash that had wiped out more than Rs 8 lakh crore in investor wealth. The Sensex gained over 238 points to close at 76,742, while the Nifty rose 81 points to end the session at 23,963. The renewed optimism was broad-based, with the Nifty Smallcap 100 and Nifty Midcap 100 indices gaining up to 2%. This came as India VIX, which measures market volatility, crashed around 10% to 13.27 after skyrocketing 26% in the previous session.

Here's how analysts read the market pulse

Indian equity markets staged a moderate rebound, aided by supportive global cues, though investors remained watchful of the geopolitical developments that triggered the last trading day's sell-off, said Vinod Nair, Head of Research at Geojit Investments.


The recovery was led by mid and small-cap stocks, with realty and PSU banks bouncing back strongly after their recent correction, the analyst noted. “Domestically, sentiment remains relatively resilient, underpinned by an improved outlook for H2, a recovery in rainfall conditions, and better valuation levels. That said, the latest US Fed minutes flagged renewed inflation concerns, which could weigh on the performance of the global market,” according to Nair.

US stocks

Wall Street's main indexes advanced on Thursday, as rising chipmakers helped outweigh geopolitical anxiety over renewed attacks that could prolong the U.S.-Iran conflict, while Meta Platforms fell after Reuters reported its AI chip production plans.

The U.S. military said on Wednesday it launched new strikes on Iran ‌to keep the ⁠Strait of ⁠Hormuz open to shipping. Iran responded with attacks on U.S. assets in Kuwait and Bahrain, deepening a confrontation amid fragile ceasefire efforts.

The Philadelphia SE Semiconductor index gained 5% in early trading to be on track for a second straight positive session.

European markets

Back in Europe the pan-European STOXX 600 index remained up 0.7% with tech stocks up 2.6%. Brent crude futures were down 0.62% to nearly $77.54 after running higher to nearly $79 a barrel earlier in the day. U.S. crude dropped 0.92% to $72.84 a barrel.


Tech view

The Nifty recouped a portion of yesterday's losses, reflecting buying interest at lower levels, said Rupak De, Senior Technical Analyst at LKP Securities. “On the daily chart, the index has formed a bullish harami pattern just above the 50-day EMA, making the current technical setup encouraging. However, the daily RSI remains in a bearish crossover, suggesting that caution is still warranted,” he added.

“The overall market sentiment is likely to improve significantly if the Nifty manages to sustain above the 24,000 mark. On the upside, immediate resistance is placed at 24,200, followed by 24,400. On the downside, immediate support is seen at 23,900 and 23,800,” according to the analyst.

Most active stocks in terms of turnover

Kalyan Jewellers (Rs 5,006 crore), HDFC Bank (Rs 3,266 crore), Bharti Airtel (Rs 2,161 crore), L&T (Rs 2,004 crore), ICICI Bank (Rs 1,935 crore), Reliance Industries (Rs 1,885 crore) and Swiggy (Rs 1,555 crore) were among the most active stocks on NSE in value terms. Higher activity in 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 (Traded shares: 19.89 crore), Kalyan Jewellers (Traded shares: 11.71 crore), Ola Electric Mobility (Traded shares: 6.42 crore), Swiggy (Traded shares: 5.6 crore), Yes Bank (Traded shares: 5.22 crore), Eternal (Traded shares: 4.99 crore) and IFCI (Traded shares: 4.8 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Kalyan Jewellers, CE Info Systems, Choice International, Swiggy, Macrotech Developers, Kaynes Technology and Capri Global were among the stocks that witnessed strong buying interest from market participants.

52-week high

Among the ones which hit their 52-week highs on NSE included Capri Global, Jindal Saw, Welspun Corp, Neuland Labs, Star Health, Sun Pharma and Granules India.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Dr. Reddys, Akzo Nobel, BLS International Services, Solar Industries, Mazagon Dock Shipbuilders, HEG and Adani Transmission.

52-week low

Among the ones that hit their 52-week lows on NSE included Birlasoft and Brainbees Solutions.

Sentiment meter favours bulls

Out of the 3,411 stocks that traded on the NSE on July 9, Thursday, 2,522 stocks witnessed advances, 780 saw declines while 112 stocks remained unchanged.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)