Domestic benchmark equity indices, Sensex and Nifty50, rebounded from a slow start to close at fresh record highs on Thursday, driven by gains in financial and IT stocks, as well as index heavyweight Reliance Industries, which plans to accelerate AI adoption and issue bonus shares.
The 30-share BSE benchmark Sensex advanced 349 points or 0.43% to settle at 82,134. The broader NSE Nifty gained 99.6 points or 0.40% to end at 25,152.
Here's how analysts read the market pulse:
"On the daily chart, we can observe that Nifty has been inching higher on account of sector rotation. We expect the momentum to continue towards 25250. On the downside, the crucial support zone is placed at 25000 – 24970. Divergence among the daily and hourly time frame momentum indicators can lead to some more range-bound price action," said Jatin Gedia, Technical Research Analyst at Sharekhan.
Rupak De of LKP Securities, said, "Nifty moved up to achieve its highest-ever closing following a volatile session. Besides, the index has undergone a brief consolidation breakout. The RSI is in a bullish crossover, indicating strong price momentum. In the short term, the index might move towards 25,300, with support on the lower end placed at 25,000."
That said, here’s a look at what some key indicators are suggesting for Friday's action:
US market:
Wall Street’s main indexes rose on Thursday as data indicated a strong U.S. economy. Nvidia's shares slipped after its forecast matched expectations but didn’t exceed them.
Despite this, semiconductor stocks like Broadcom and AMD gained, boosting the Philadelphia SE Semiconductor index by 1.2%. Apple rose over 2% after Citigroup named it a top AI pick over Nvidia, contributing to a 0.9% gain in the tech sector.
At 11:45 a.m. ET, the Dow Jones Industrial Average was up 289.54 points, or 0.70%, at 41,380.96, the S&P 500 was up 39.02 points, or 0.70%, at 5,631.20, and the Nasdaq Composite was up 182.80 points, or 1.04%, at 17,738.82.
European shares:
Europe's STOXX 600 gained 0.8% to 524.57 points on Thursday, just shy of a record high, while Germany's DAX rose 0.7% to a new peak, driven by tech stocks. This came after softer inflation data improved prospects for interest rate cuts, countering some negativity from Nvidia's quarterly results.
German inflation for August was 2%, below the 2.3% forecast, and Spain's EU-harmonised inflation slowed to 2.4%, its lowest in a year.
The UK's FTSE 100 climbed 0.4%, bolstered by travel and mining sectors, whereas the FTSE 250 fell 0.2%, marking its third consecutive decline.
Tech View:
Nifty ended Thursday’s monthly expiry session with a gain of about 100 points after scaling a fresh record high. The intraday bounce from the 25,000 level suggests strong support at this level.
With today's strong close, prices have now surpassed the previous swing high, confirming a "Saucer" formation and signaling the potential for further upside. Nifty has consistently maintained the 25,000 level, and as long as this support holds, a positive bias should be retained. However, a break below 25000 could lead to weakness towards 24850 or lower, Rajesh Bhosale, Equity Technical Analyst, Angel One, said.
Open Interest (OI) data showed the highest OI on the call side at 25,300 and 25,500 strike prices, while on the put side, it was concentrated at 25,000 strike price.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Protean eGov Technologies, Lupin, Coforge, Emami, and Max Financial Services 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 Kaynes Technology, Venky's, Safari Industries, Polyplex Corporation, Thyrocare Technologies, and Century Enka 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:
RIL (Rs 5,824 crore), Tata Motors (Rs 4,509 crore), HDFC Bank (Rs 4,016 crore), IndiGo (Rs 3,330 crore), NBCC (Rs 2,305 crore), KEC International (Rs 1,905 crore), and Bajaj Finance (Rs 1,865 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: 82.7 crore), TV18 Broadcast (Shares traded: 13.4 crore), NBCC (Shares traded: 11.6 crore), YES Bank (Shares traded: 7.8 crore), JM Financial (Shares traded: 5.2 crore), Tata Steel (Shares traded: 4.4 crore), and Suzlon Energy (Shares traded: 4.1 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Whirlpool India, GSPL, Concord Biotech, Godfrey Philips, PNB Housing, Bajaj Finserv, and L&T Tech among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
No major shares hit their 52-week low on Thursday.
Sentiment meter favours bears:
Overall, market breadth favoured bears as 2,531 stocks ended in the red, while 1,420 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)
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