Mazhar Mohammad of Chartviewindia said, a sustainable close above 12,000 levels shall open up initial targets of 12,225 levels.
"Considering the sharp swings of the market in both the directions, traders are advised to remain neutral by adopting a stock-specific approach but fresh buying opportunities in the index shall arise only on a close above 12,000 levels,” he said.
Keshav Lahoti of Angel Broking said, market action for the next few days will be dependent on the result announcement, global cues and news around the relief package planned by the Government.
Ajit Mishra of Religare Broking said, the volatility is expected to remain high due to mixed global cues and prevailing earnings season.
"Nifty has been hovering in the range of 11,650-12,050 and needs a decisive break for the further surge. Meanwhile, traders should limit their leveraged positions and maintain positions on both sides," he said.
That said here’s a look at what some of the key indicators are suggesting for Thursday's action:
US stocks slip as investors wait for stimulus deal
Wall Street's main indexes dipped in choppy trading on Wednesday as investors waited for progress in ongoing negotiations related to the coronavirus stimulus package. The Dow Jones Industrial Average was down 81.54 points, or 0.29%, at 28,227.25, the S&P 500 was down 7.69 points, or 0.22%, at 3,435.43, and the Nasdaq Composite was down 31.46 points, or 0.27%, at 11,485.04.
European shares fall as healthcare, construction sectors drag
European shares fell for a third straight session on Wednesday, as losses in healthcare and construction stocks countered a lift from encouraging earnings from consumer giant Nestle and telecoms equipment maker Ericsson. The pan-European STOXX 600 fell 1.0%, in sharp contrast to Asian markets and Wall Street futures that steadied on hopes of a fresh U.S. stimulus package.
Tech View: 12,000 key level to watch for Nifty
Nifty50 on Wednesday witnessed a sharp recovery. According to market experts, some short covering helped the 50-share index pare its intraday losses. Commenting on the huge swing during the day, Milan Vaishnav, Consulting Technical Analyst and Founder, Gemstone Equity Research and Advisory, said, “The strike of 12,000 continued to hold the maximum concentration of Call OI despite the market moving past that level briefly. This led to profit-taking from a higher level.” He further added that the formation of the long lower shadow near the crucial resistance point of 12,000 reinforces the belief that the level is a key resistance point for the market.
Check out the candlestick formations in the latest trading sessions
F&O: VIX must cool down below 19 for market stability
India VIX moved up by 0.99 per cent from 22.69 to 22.91 level. The volatility index needs to cool down below 19 for market stability but it might spike ahead of the US election. Options data suggested a wider trading range between 11,600 and 12,100 levels and an immediate trading range between 11,800 and 12,100 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Wednesday showed bullish trade setup on the counters of Apollo Tyres, Aditya Birla Capital, Bharat Electronics, Newgen Software Tech, Bharat Forge, Tejas Networks, Brigade Enterprises, Karur Vysya Bank, Man Industries, Sterlite Technologies, Oriental Aromatics, Nelcast, Arvind SmartSpaces, HUDCO, Siemens, Jindal Saw, Rain Industries, Future Lifestyle, Lasa Supergenerics, Future Supply Chain, National Fertilizers, EID Parry, Polycab India, Star Cement, Sterling and Wilson, Kalpataru Power, Ugar Sugar Works, IIFL Finance, HBL Power Systems, Shoppers Stop, Ruby Mills, JSW Holdings, Agri-Tech (India), Bharat Bijlee and Kewal Kiran Clothing among others.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Dabur India, Cadila Healthcare, Colgate Palmolive, Berger Paints, Shalby, Maheshwari Logistics, RS Software (India), Skipper, Solara Active Pharma, Balaji Amines, Hatsun Agro, SPL Industries, JBM Auto, Asahi India Glass, Kanoria Chemical, Grindwell Norton and Lotus Eye Hospital.
Wednesday’s most active stocks
RIL (Rs 3370.58 crore), Bajaj Finance (Rs 2423.11 crore), Infosys (Rs 2272.40 crore), HDFC Bank (Rs 2206.60 crore), ICICI Bank (Rs 1815.44 crore), IndusInd Bank (Rs 1682.18 crore), HDFC (Rs 1671.56 crore), Axis Bank (Rs 1349.27 crore), TCS (Rs 1234.19 crore) and Britannia Industries (Rs 1224.04 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: 17.67 crore), YES Bank (shares traded: 7.57 crore), Vedanta (shares traded: 7.30 crore), Federal Bank (shares traded: 5.48 crore), SBI (shares traded: 5.45 crore), ICICI Bank (shares traded: 4.31 crore), Tata Motors (shares traded: 3.92 crore), NTPC (shares traded: 3.86 crore), Bank of Baroda (shares traded: 3.05 crore) and ZEEL (shares traded: 3.02 crore) were among the most traded stocks in the session.
Stocks seeing buying interest
JK Cement, ACC, PI Industries, Tata Elxsi and JSW Steel witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Wednesday signalling bullish sentiment.
Stocks seeing selling pressure
Sumit Woods, Archidply Decor, Sintercom India and Mittal Life Style witnessed strong selling pressure in Wednesday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls
Overall, market breadth remained in favour of bulls. As many as 263 stocks on the BSE 500 index settled the day in green, while 234 settled the day in red.
Podcast: Bajaj Finance, UltraTech worth buying after Q2 results? >>>
Robust buying in banking and financial counters outweighed profit booking in IT stocks today as the benchmark indices closed in the green for the fourth straight session. After gyrating 826 points in a highly volatile session, the Sensex closed nearly 163 points higher at 40,707. Likewise, the broader Nifty closed around 41 points up at 11,938. We caught up with AK Prabhakar of IDBI Capital Markets to try and understand the market undercurrent.
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