Ahead of Market: 10 things that will decide D-Street action on Friday

The broader, more domestically-focussed small and midcaps, climbed 3.45% and 2%, respectively, recouping some losses from Wednesday.

Here's how analysts read the market pulse:
"On the daily charts, we can observe that Nifty has held on to the support zone of 21,900 – 21,860 where support parameters in the form of the 40-day average and the previous swing low is placed. On the upside the key hourly averages placed in the zone of 22,200 – 22,240 acted as a resistance and restricted further upside. In the current bounce back if Nifty manages to overlap with the level of 22,256 then the current fall shall turn out to be a corrective fall. Thus, it’s crucial how the structure pans out over the next few trading sessions," said Jatin Gedia of Sharekhan.

Rupak De, LKP Securities, said, "Nifty has closed below the 21EMA with a bearish crossover in the RSI. However, bulls managed to push the Nifty back into the rising channel by the session's end, suggesting a possibility of a bullish trend reversal. Looking ahead, the Nifty could encounter resistance in the 22,200-22,250 zone. Clearing the resistance at 22,250 might propel it towards 22,500 in the near term. Support levels are situated at 22,050-22,000."

That said, here’s a look at what some key indicators are suggesting for Friday's action:

US market
's main indexes slipped on Thursday as hotter-than-expected producer prices data likely muddied bets around the timing of the Federal Reserve's first rate cut and high-flying chip stocks extended their losses.

A Labor Department report showed the Producer Price Index (PPI) rose 0.6% month-on-month in February, compared with a 0.3% increase expected by economists polled by Reuters.

At 10:01 a.m. ET, the Dow Jones Industrial Average was down 168.41 points, or 0.43%, at 38,874.91, the S&P 500 was down 26.56 points, or 0.51%, at 5,138.75, and the Nasdaq Composite was down 96.03 points, or 0.59%, at 16,081.74.

Ten of the 11 major S&P 500 sectors fell, with real estate leading losses, down 1.6%.

Most megacap growth and technology stocks inched higher, but artificial intelligence (AI) giant Nvidia fell 3.4%.

European shares
European shares hit a record high for the third consecutive session on Thursday, supported by a raft of optimistic corporate updates, while investors remained cautious ahead of key economic data from the United States for fresh clues on the global interest rate cut trajectory.

The pan-European STOXX 600 moved up 0.3% by 8:56 GMT and looks set for its eighth straight week of gains.

Germany's benchmark DAX added 0.2%, touching all-time high levels for the third straight day, buoyed by bullish corporate reports.

Encavis shares skyrocketed 26.8% to the top of the STOXX 600 after Elbe Bidco launched a takeover offer for the German electricity and energy producer. The overall utilities index moved 1% higher.

Tech View: Inside Bar candle
Nifty on Thursday ended 149 points higher to form an Inside Bar candle on the daily chart as it consolidated around the lower half of the previous session's candle on the daily timeframe.

The positive chart pattern like higher tops and bottoms is still intact, as the Nifty managed to make a new higher swing low of 21,905 levels so far on Wednesday. As long as the last higher bottom of 21,860 is protected, the chances of significant downward reversal could be doubtful, Nagaraj Shetti of HDFC Securities said.

Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence () showed bullish trade on the counters of ITC and Kalyan Jewellers, among others.

The MACD is known for signalling 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 Jindal Stainless, Syrma SGS Technology, V-Guard, CSB Bank, Tejas Networks, and Tata Elxsi among others. A bearish crossover on the MACD on these counters indicate that they have just begun their downward journey.

Most active stocks in value terms
HDFC Bank (Rs 3,809 crore), RIL (Rs 2,666 crore), Tata Motors (Rs 2,220 crore), L&T (Rs 1,631 crore), ICICI Bank (Rs 1,545 crore), SBI (Rs 1,466 crore), and Infosys (Rs 1,446 crore) 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
Tata Steel (Shares traded: 9.1 crore), ITC (Shares traded: 3 crore), HDFC Bank (Shares traded: 2.6 crore), Power Grid (Shares traded: 2.6 crore), Tata Motors (Shares traded: 2.2 crore), ONGC (Shares traded: 2.1 crore), and NTPC (Shares traded: 2 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest
Shares of Solar Industries and Colgate-Palmolive 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 IIFL Finance, GMM Pfaudler, Rajesh Exports, VIP Industries, Campus Activewears, Atul, and Alkyl Amines hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bulls
Overall, market breadth favoured bears as 2,679 stocks ended in the green, while 1,197 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 Economic Times)