Mazhar Mohammad of Chartviewindia.in said, the 11,300 level is proving to be a critical hurdle as it also coincides with a 50-day simple moving average, whose value is placed at 11,306.
“Hence, a close above the said hurdle shall be considered as a sign of strength for the bulls, which can expand the pullback swing initially towards 11,413. We advise traders to create long positions only on a close above 11,300 levels,” he said.
Vinod Nair of Geojit Financial Services said traders are advised caution as markets are expected to remain volatile.
Chandan Taparia of Motilal Oswal Financial Services said, the index has to continue to hold above the 11,180 zones to witness an upmove towards 11,333 and then 11,450 while on the downside, major supports are seen at 11,111 then 11,000.
That said here’s a look at what some of the key indicators are suggesting for Thursday’s action:
US stocks jump on stimulus hopes, upbeat data
Wall Street’s main indexes jumped on Wednesday, led by industrials and technology-related stocks, as officials rekindled the idea of an imminent fiscal stimulus package, while upbeat data suggested a domestic economic recovery was on track. Dow Jones Industrial Average was up 1.30% with Boeing Co and Goldman Sachs Group Inc among the biggest boosts to the blue-chip index. The S&P 500 rose 1.01% and the Nasdaq Composite added 1.08%.
European shares set for monthly loss on virus worries
European stocks slipped on Wednesday as surging coronavirus cases and a chaotic debate that highlighted risks from the U.S. presidential election sapped risk appetite at the end of a tumultuous month for financial markets. The pan-European STOXX 600 index fell 0.4% tracking Wall Street futures lower, after a messy face-off between U.S. President Donald Trump and Democratic rival Joe Biden overnight stoked caution among investors.
Tech View: Breaching 11,300 a challenge for Nifty
Nifty50 on Wednesday ended flat for the second straight session. As was the case on Tuesday, the index witnessed selling pressure near 11,300 level, while it formed a day’s low near 11,180, reflecting indecisiveness among investors. This was well-captured in the Doji candle the index formed on the daily chart. The 11,300 level is proving to be a critical hurdle as it also coincides with a 50-day simple moving average, whose value is placed at 11,306 level, said Mazhar Mohammad of Chartviewindia.in.
Check out the candlestick formations in the latest trading sessions
F&O: Falling VIX gives hopes for bounceback move
India VIX fell 1.21 per cent from 19.77 to 19.53 levels, and the overall lower volatility is giving some comfort for a bounceback move in the market. Options data suggested a wider trading range between 10,800 and 11,500 levels and an immediate trading range between 11,000 and 11,400 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Wednesday showed bullish trade setup on the counters of Aurobindo Pharma, Dabur India, Ambuja Cements, HDFC, L&T, Titagarh Wagons, Adani Green Energy, Strides Pharma Science, HFCL, Munjal Auto Industries, Raymond, Indiabulls Ventures, Welspun Corp, Bliss GVS Pharma, ICICI Pru Life, Himatsingka Seid, Hindustan Aeronautic, LT Foods, Indian Energy Exchange, Just Dial, Siemens, Shoppers Stop, Ramky Infrastructure, Sagar Cements, DIC India, Aarvi Encon, Advani Hotels, Delta Manufacturing, Summit Securities, Morarjee Textiles, Damodar Industries and ICRA among others.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Bata India, Shilpa Medicare, Allcargo Logistics, Coromandel International, Globus Spirits, Action Construction, McDowell Holdings, Vardhman Special, Aurionpro Solutions, Orient Abrasives, MPS and Poddar Pigments among others.
Wednesday’s most active stocks
Dr. Reddy’s Labs (Rs 2827.38 crore) RIL (Rs 2540.56 crore) BPCL (Rs 1578.96 crore) Bajaj Finance (Rs 1190.43 crore) Bharti Airtel (Rs 1164.94 crore) Cipla (Rs 1120.47 crore) HDFC Bank (Rs 1006.53 crore) IndusInd Bank (Rs 994.84 crore) TCS (Rs 973.47 crore) and Infosys (Rs 814.40 crore) were among the most active stocks on Dalal Street on Wednesday in value terms.
Wednesday’s most active stocks in volume terms
Vodafone Idea (shares traded: 34.05 crore) Tata Motors (shares traded: 4.89 crore) BPCL (shares traded: 4.36 crore) YES Bank (shares traded: 4.05 crore) SBI (shares traded: 3.76 crore) IDFC First Bank (shares traded: 3.66 crore) BHEL (shares traded: 3.62 crore) Bank of Baroda (shares traded: 3.21 crore) Ashok Leyland (shares traded: 3.20 crore) and ZEEL (shares traded: 3.12 crore) were among the most traded…