Ahead of Market: 10 things that will decide stock market action on Tuesday
Indian markets snapped a five-session losing streak as easing Iran-US tensions, lower crude prices and upbeat earnings lifted sentiment. Sensex climbed 776 points and Nifty reclaimed 23,996, with analysts eyeing 24,250–24,300 if the index sustains...
By Debaroti Adhikary, ETMarkets.com |
The Indian stock market snapped a five-session losing streak, with Sensex and Nifty ending in the deep green on Monday as easing tensions between Iran and the US, falling oil prices and other factors boosted market sentiment.
Sensex ended 776 points higher at 76,836 while Nifty 50 gained over 228 points to 23,996 on Monday. The sharp gains added more than Rs 5 lakh crore to the total market capitalisation of all companies listed on BSE, pushing it up to Rs 481 lakh crore.
Here's how analysts read the market pulse
A pause in strikes in West Asia eased concerns over rising import costs and inflation, triggering a relief rally in markets, said Vinod Nair, Head of Research at Geojit Investments. He added that the sharp correction in crude oil prices, along with a decline in long-term bond yields, also raised hopes of a durable resolution, supported by signs of long unwinding.
“Key central bank policy meetings this week, led by the Fed, BoE, and BoJ, may provide greater flexibility to maintain the status quo on interest rates. On the domestic front, a narrowing rainfall deficit is adding comfort to the inflation outlook, supported by better-than-expected Q1 earnings and a positive business outlook,” according to the analyst.
US stocks
Stocks wavered on Wall Street Monday and oil prices fell after the U.S. and Iran paused their attacks while work resumed on restarting negotiations to end the war.
Oil prices reversed course from a week ago, when a sharp escalation in fighting between the U.S. and Iran worsened worries about global oil supplies. The price of Brent crude, the international standard, dropped 5.5% to $86.60 a barrel for October delivery. Prices surged to over $100 a barrel last week before easing.
European markets
The pan-European STOXX 600 index rose 0.35%, while Europe's broad FTSEurofirst 300 index rose 8.08 points, or 0.31%, following the fall in oil prices.
Tech view
The Nifty 50 index has recovered as the fall in crude prices lifted equity market sentiment, said Rupak De, Senior Technical Analyst at LKP Securities. He noted that the index has reclaimed the 50EMA as it recovered for the second consecutive day. The RSI is in a bullish crossover on the hourly chart.
On Tuesday, the market may remain volatile as the NSE F&O contracts expire, De explained. “If the Nifty moves and sustains above 24,000, we may witness a continuation of the uptrend towards 24,250–24,300. However, failure to sustain above 24,000 might trigger a correction towards 23,800,” he added.
Most active stocks in terms of turnover
HDFC Bank (Rs 2,199 crore), Infosys (Rs 1,716 crore), IDFC First Bank(Rs 1,537 crore), ICICI Bank (Rs 1,527 crore), Eternal (Rs 1,408 crore), Laurus Labs (Rs 1,352 crore) and Sun Pharma (Rs 1,060 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: 24.75 crore), IDFC First Bank (Traded shares: 17.79 crore), Sagility India (Traded shares: 11.13 crore), Canara Bank (Traded shares: 4.88 crore), Eternal (Traded shares: 4.8 crore), Yes Bank (Traded shares: 4.77 crore) and Suzlon Energy (Traded shares: 4.52 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
CarTrade Tech, KFIN Technologies, Ramkrishna Forgings, Redington, Sagility India, Laurus Labs and CONCOR 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 Ramkrishna Forgings, Laurus Labs, IDFC First Bank, CreditAccess Grameen, Dr Lal Pathlabs, Lloyds Metals and Lenskart Solutions.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were ITD Cementation, Zen Tech, New India Assurance, MRPL, Aegis Logistics, ONGC and Physicswallah.
52-week low
Among the ones which hit their 52-week lows on NSE included Tega Industries and Go Digit General Insurance.
Sentiment meter favours bears
Out of the 3,446 stocks that traded on the NSE on July 27, Monday, 2,259 stocks witnessed advances, 1,071 saw declines while 116 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)
Sensex ended 776 points higher at 76,836 while Nifty 50 gained over 228 points to 23,996 on Monday. The sharp gains added more than Rs 5 lakh crore to the total market capitalisation of all companies listed on BSE, pushing it up to Rs 481 lakh crore.
Here's how analysts read the market pulse
A pause in strikes in West Asia eased concerns over rising import costs and inflation, triggering a relief rally in markets, said Vinod Nair, Head of Research at Geojit Investments. He added that the sharp correction in crude oil prices, along with a decline in long-term bond yields, also raised hopes of a durable resolution, supported by signs of long unwinding.
“Key central bank policy meetings this week, led by the Fed, BoE, and BoJ, may provide greater flexibility to maintain the status quo on interest rates. On the domestic front, a narrowing rainfall deficit is adding comfort to the inflation outlook, supported by better-than-expected Q1 earnings and a positive business outlook,” according to the analyst.
US stocks
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Stocks wavered on Wall Street Monday and oil prices fell after the U.S. and Iran paused their attacks while work resumed on restarting negotiations to end the war.
Oil prices reversed course from a week ago, when a sharp escalation in fighting between the U.S. and Iran worsened worries about global oil supplies. The price of Brent crude, the international standard, dropped 5.5% to $86.60 a barrel for October delivery. Prices surged to over $100 a barrel last week before easing.
European markets
The pan-European STOXX 600 index rose 0.35%, while Europe's broad FTSEurofirst 300 index rose 8.08 points, or 0.31%, following the fall in oil prices.
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Tech view
The Nifty 50 index has recovered as the fall in crude prices lifted equity market sentiment, said Rupak De, Senior Technical Analyst at LKP Securities. He noted that the index has reclaimed the 50EMA as it recovered for the second consecutive day. The RSI is in a bullish crossover on the hourly chart.
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On Tuesday, the market may remain volatile as the NSE F&O contracts expire, De explained. “If the Nifty moves and sustains above 24,000, we may witness a continuation of the uptrend towards 24,250–24,300. However, failure to sustain above 24,000 might trigger a correction towards 23,800,” he added.
Most active stocks in terms of turnover
HDFC Bank (Rs 2,199 crore), Infosys (Rs 1,716 crore), IDFC First Bank(Rs 1,537 crore), ICICI Bank (Rs 1,527 crore), Eternal (Rs 1,408 crore), Laurus Labs (Rs 1,352 crore) and Sun Pharma (Rs 1,060 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: 24.75 crore), IDFC First Bank (Traded shares: 17.79 crore), Sagility India (Traded shares: 11.13 crore), Canara Bank (Traded shares: 4.88 crore), Eternal (Traded shares: 4.8 crore), Yes Bank (Traded shares: 4.77 crore) and Suzlon Energy (Traded shares: 4.52 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
CarTrade Tech, KFIN Technologies, Ramkrishna Forgings, Redington, Sagility India, Laurus Labs and CONCOR 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 Ramkrishna Forgings, Laurus Labs, IDFC First Bank, CreditAccess Grameen, Dr Lal Pathlabs, Lloyds Metals and Lenskart Solutions.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were ITD Cementation, Zen Tech, New India Assurance, MRPL, Aegis Logistics, ONGC and Physicswallah.
52-week low
Among the ones which hit their 52-week lows on NSE included Tega Industries and Go Digit General Insurance.
Sentiment meter favours bears
Out of the 3,446 stocks that traded on the NSE on July 27, Monday, 2,259 stocks witnessed advances, 1,071 saw declines while 116 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)
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