Ahead of Market: 10 things that will decide stock market action on Thursday
Indian equities extended losses for a seventh session as rising oil prices and US-Iran tensions heightened risk aversion. Nifty fell to 24,078, while Sensex declined 326 points. Analysts flagged 24,000-24,050 as crucial support, with weak breadth ...
By Debaroti Adhikary, ETMarkets.com |
iStock
Indian markets remained under pressure as higher crude prices, geopolitical uncertainty and Fed concerns drove selling, while analysts identified 24,000 as key Nifty support.
The Indian stock market continued to bleed on Wednesday, with Nifty extending losses for the seventh consecutive session as oil prices inched higher after Trump claimed the US is not engaged in any peace talks with Iran.
Sensex lost around 326points to close below 76,910, while Nifty 50 dropped nearly 77 points to end the session at 24,078 on Wednesday. Broader markets also continued to record losses, with Nifty Midcap 100 and Nifty Smallcap 100 indices falling up to 0.5%.
Here's how analysts read the market pulse
Markets turned cautious ahead of the release of the US FOMC minutes, as investors remained concerned that the Federal Reserve’s battle against inflation may continue, said Vinod Nair, Head of Research at Geojit Investments. He added that the lack of a diplomatic resolution following the end of the US-Iran ceasefire kept crude oil prices and bond yields elevated, strengthening risk-off sentiment.
“Reflecting weakness across Asian markets, Indian equities saw broad-based selling, though IT stocks outperformed on value buying and support from a weaker rupee. As the Q1FY27 earnings season draws to a close, corporate results have generally exceeded expectations, reinforcing confidence in earnings resilience. However, with temporary market tailwinds fading, the next phase of market performance will depend largely on the stability of crude oil supply chains,” the analyst further said.
US stocks
The main U.S. stock indexes recovered on Wednesday after a technology-driven slump in the previous session as government bond yields retreated from multi-decade highs and investors assessed a slew of corporate updates.
Vaccine-maker Moderna's shares more than doubled after its personalized mRNA cancer therapy developed with Merck cut the risk of melanoma recurrence and spread in a late-stage trial.
Marvell Technologies surged about 9% after the chipmaker issued Alphabet's Google a warrant to buy a stake worth about $12.18 billion.
The yield on the 30-year Treasury bond retreated from its highest level since 2007 after the U.S. Treasury announced it would double the size of liquidity support buyback operations for longer-dated bonds, boosting risk appetite. It was last at 5.209%.
European markets
European shares hovered around a two-week low on Wednesday, as oil prices remained elevated on the back of Middle East tensions, supporting energy stocks but raising questions over inflation and growth, while investors awaited U.S. Federal Reserve's July meeting minutes.
A selloff in euro zone government bonds, which had pushed long-dated yields to their highest levels in more than a decade on Tuesday, paused as the U.S. Treasury market stabilised. Long-end sovereign yields act as an anchor for the price of nearly every other asset in financial markets, including mortgage rates.
The pan-European STOXX 600 was flat at 651.51 points.
Tech view
"The Nifty found support at the lower band of the rising channel. Besides, the index filled a gap on the daily timeframe. The 61.80% Fibonacci retracement level also coincided with these support levels, where the index made a low. Immediate support is placed at 24,000–24,050; if this zone holds, the Nifty might stage a meaningful recovery. On the other hand, if the Nifty fails to sustain above 24,000, significant bearishness could increase, dragging the index towards much lower levels. Therefore, long positions should be held with a strict stop-loss at 24,000,” said Rupak De, Senior Technical Analyst at LKP Securities.
Most active stocks in terms of turnover
Aster DM Health (Rs 5,725 crore), Himadri Speciality (Rs 2,441 crore), BSE (Rs 1,599 crore), HDFC Bank (Rs 1,535 crore), ICICI Bank (Rs 1,441 crore), Bharti Airtel (Rs 1,206 crore) and Netweb Technologies (Rs 985 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: 32.07 crore), Aster DM Health (Traded shares: 7.4 crore), IFCI (Traded shares: 6.38 crore), Yes Bank (Traded shares: 4.95 crore), Suzlon Energy (Traded shares: 4.73 crore), Himadri Speciality (Traded shares: 3.31 crore), and JP Power (Traded shares: 3.09 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
GSK Pharma, ICICI Prudential AMC, Kaynes Technology, Cyient, RR Kabel, Nippon Life AMC and Elgi Equipments 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 GSK Pharma, R R Kabel, Elgi Equipments, Welspun Corp, Schloss Bangalore, Chennai Petro and PNB Housing.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Netweb Technologies, CESC, Ami Organics, ITD Cementation, Bata India, HEG and ABB Power.
52-week low
Among the ones which hit their 52-week lows on NSE included Brainbees Solutions, Aditya Birla Lifestyle, Whirlpool India, KEC International, ITC, IRFC and IndiaMart.
Sentiment meter favours bears
Out of the 3,609 stocks that traded on the NSE on August 19, Wednesday, 1,320 stocks witnessed advances, 2,171 saw declines while 118 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 lost around 326points to close below 76,910, while Nifty 50 dropped nearly 77 points to end the session at 24,078 on Wednesday. Broader markets also continued to record losses, with Nifty Midcap 100 and Nifty Smallcap 100 indices falling up to 0.5%.
Here's how analysts read the market pulse
Markets turned cautious ahead of the release of the US FOMC minutes, as investors remained concerned that the Federal Reserve’s battle against inflation may continue, said Vinod Nair, Head of Research at Geojit Investments. He added that the lack of a diplomatic resolution following the end of the US-Iran ceasefire kept crude oil prices and bond yields elevated, strengthening risk-off sentiment.
“Reflecting weakness across Asian markets, Indian equities saw broad-based selling, though IT stocks outperformed on value buying and support from a weaker rupee. As the Q1FY27 earnings season draws to a close, corporate results have generally exceeded expectations, reinforcing confidence in earnings resilience. However, with temporary market tailwinds fading, the next phase of market performance will depend largely on the stability of crude oil supply chains,” the analyst further said.
US stocks
ADVERTISEMENT
The main U.S. stock indexes recovered on Wednesday after a technology-driven slump in the previous session as government bond yields retreated from multi-decade highs and investors assessed a slew of corporate updates.
Vaccine-maker Moderna's shares more than doubled after its personalized mRNA cancer therapy developed with Merck cut the risk of melanoma recurrence and spread in a late-stage trial.
Marvell Technologies surged about 9% after the chipmaker issued Alphabet's Google a warrant to buy a stake worth about $12.18 billion.
The yield on the 30-year Treasury bond retreated from its highest level since 2007 after the U.S. Treasury announced it would double the size of liquidity support buyback operations for longer-dated bonds, boosting risk appetite. It was last at 5.209%.
ADVERTISEMENT
European markets
European shares hovered around a two-week low on Wednesday, as oil prices remained elevated on the back of Middle East tensions, supporting energy stocks but raising questions over inflation and growth, while investors awaited U.S. Federal Reserve's July meeting minutes.
ADVERTISEMENT
A selloff in euro zone government bonds, which had pushed long-dated yields to their highest levels in more than a decade on Tuesday, paused as the U.S. Treasury market stabilised. Long-end sovereign yields act as an anchor for the price of nearly every other asset in financial markets, including mortgage rates.
The pan-European STOXX 600 was flat at 651.51 points.
Tech view
"The Nifty found support at the lower band of the rising channel. Besides, the index filled a gap on the daily timeframe. The 61.80% Fibonacci retracement level also coincided with these support levels, where the index made a low. Immediate support is placed at 24,000–24,050; if this zone holds, the Nifty might stage a meaningful recovery. On the other hand, if the Nifty fails to sustain above 24,000, significant bearishness could increase, dragging the index towards much lower levels. Therefore, long positions should be held with a strict stop-loss at 24,000,” said Rupak De, Senior Technical Analyst at LKP Securities.
Most active stocks in terms of turnover
Aster DM Health (Rs 5,725 crore), Himadri Speciality (Rs 2,441 crore), BSE (Rs 1,599 crore), HDFC Bank (Rs 1,535 crore), ICICI Bank (Rs 1,441 crore), Bharti Airtel (Rs 1,206 crore) and Netweb Technologies (Rs 985 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: 32.07 crore), Aster DM Health (Traded shares: 7.4 crore), IFCI (Traded shares: 6.38 crore), Yes Bank (Traded shares: 4.95 crore), Suzlon Energy (Traded shares: 4.73 crore), Himadri Speciality (Traded shares: 3.31 crore), and JP Power (Traded shares: 3.09 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
GSK Pharma, ICICI Prudential AMC, Kaynes Technology, Cyient, RR Kabel, Nippon Life AMC and Elgi Equipments 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 GSK Pharma, R R Kabel, Elgi Equipments, Welspun Corp, Schloss Bangalore, Chennai Petro and PNB Housing.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Netweb Technologies, CESC, Ami Organics, ITD Cementation, Bata India, HEG and ABB Power.
52-week low
Among the ones which hit their 52-week lows on NSE included Brainbees Solutions, Aditya Birla Lifestyle, Whirlpool India, KEC International, ITC, IRFC and IndiaMart.
Sentiment meter favours bears
Out of the 3,609 stocks that traded on the NSE on August 19, Wednesday, 1,320 stocks witnessed advances, 2,171 saw declines while 118 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)
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
