Ahead of Market: 10 things that will decide stock market action on Thursday

The Indian market ended higher on Wednesday, with the Sensex and Nifty rising for a second straight session, lifted by optimism around progress in India-U.S. trade talks and expectations that the Federal Reserve will trim interest rates later in the day.

The S&P BSE Sensex rose 313.02 points, or 0.38%, to 82,693.71 at the close, while the NSE Nifty advanced 91.15 points, or 0.36%, to end at 25,330.25.

Here's how analysts read the market pulse:

Indian equities maintained their upward momentum, aided by the revival of India–U.S. trade talks and efforts to strengthen bilateral ties, said Vinod Nair, Head of Research at Geojit Investments, adding that a stable INR added to investor confidence, while global markets traded cautiously ahead of the US Fed’s FOMC decision.


"Domestically, equities remained in risk-on mode, supported by expectations of a rate cut and improving macro fundamentals. Strong domestic inflows, currency stability, and favourable geopolitical dynamics continue to create a constructive near-term outlook for the market," said Nair.

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US markets

Wall Street's main indexes were mixed in choppy trading on Wednesday, with the S&P 500 muted ahead of a widely expected interest-rate cut from the U.S. Federal Reserve later in the day.

The central bank is expected to reduce borrowing costs by at least 25 basis points at 2 p.m. ET, a move priced in by investors after a series of economic indicators showed a weakening labor market.

European Markets

uropean shares ended flat on Wednesday as investors avoided making big bets ahead of the Federal Reserve's monetary policy decision, while Puma surged on a report of a takeover approach for the sportswear firm.

The pan-European STOXX 600 closed 0.05% lower at 550.53 points, to trade at a one-week low.

Tech View

The Nifty continues to sustain above the previous swing high, supported by follow-up buying, said Rupak De, Senior Technical Analyst at LKP Securities, adding that the market sentiment has improved significantly, with the panic index slipping by 10 during the day, reflecting growing investor confidence.

“Going forward, the trend is likely to remain positive as long as the Nifty holds above the 21EMA, which is currently placed just above 24,900. On the higher side, resistance is seen at 25,400 and 25,500. A decisive move above 25,500 could lead to an additional rally of 400–500 points," said De.

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Most active stocks in terms of turnover

Redington (Rs 1,740 crore), HDFC Bank (Rs 1,681 crore), GRSE (Rs 1,588 crore), SBI (Rs 1,461 crore), KNR Constructions (Rs 1,452 crore), BEL (Rs 1,291 crore) and Vedanta (Rs 1,266 crore) were among the most active stocks on BSE in value terms. Higher activity in 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 (Traded shares: 58.72 crore), YES Bank (Traded shares: 7.72 crore), KNR Constructions (Traded shares: 6.91 crore), Suzlon Energy (Traded shares: 6.36 crore), Redington (Traded shares: 5.95 crore), Canara Bank (Traded shares: 3.49 crore) and PNB (Traded shares: 3.35 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of DCM Shriram, GRSE, PTC Industries, Elgi Equipments, IFCI, Zen Tech and KNR Constructions were among the stocks that witnessed strong buying interest from market participants.

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52 Week high

Over 162 stocks hit their 52 week highs today while 53 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Tata Steel and Maruti Suzuki.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Bajaj Finserv, Titan Company, ITC, IndusInd Bank, HUL, Power Grid and Tata Steel.

Sentiment meter bullish

The market sentiments were bullish. Out of the 4,328 stocks that traded on the BSE on Wednesday, 1,828 stocks witnessed declines, 2,341 saw advances, while 159 stocks remained unchanged.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)