Ahead of Market: 10 things that will decide stock market action on Thursday
Indian equities reversed morning gains to close sharply lower, with Sensex falling 183 points and Nifty declining 0.52%. IT stocks weakened on visa concerns, offsetting gains in banks and metals. Technical signals pointed to continued range-bound ...
By Debaroti Adhikary, ETMarkets.com |
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Sensex and Nifty ended lower after surrendering early gains, as IT stocks dragged benchmarks despite strength in banks, metals and broader market breadth.
The Indian stock market erased all morning gains, with Sensex and Nifty closing in the deep red even as oil prices slipped.
Sensex lost 183 points to close at around 77,473 while Nifty 50 dropped 127 points or more than half a percent to end the session below 24,208. Broader markets ended mixed, with Nifty Smallcap 100 rising 0.8% while Nifty Midcap slipped into the red.
Here's how analysts read the market pulse
The domestic market ended lower, giving up early gains as sectoral divergence weighed on benchmarks through the session, said Vinod Nair, Head of Research at Geojit Investments. He noted that inflation concerns receded on tempered US sanctions on Iran, easing domestic bond yields and lifting banking stocks, while metals gained on better realization prospects.
However, these gains were largely offset by weakness in IT stocks after the US paused visa appointments amid an immigration crackdown which rekindled margin pressure concerns, according to the analyst. “Investors now await the US Core PCE print for greater clarity on the rate trajectory. A contained core reading would indicate that the recent energy-led inflation spike is transitory, easing rate concerns and supporting flows into emerging markets,” he further said.
Also read | Hindustan Zinc vs Hindalco: Why Jefferies raised target prices for both, but prefers one over the other
US stocks
Wall Street's main indexes were subdued on Wednesday as investors stuck to the sidelines ahead of AI bellwether Nvidia's quarterly earnings, while hotter-than-expected inflation bolstered bets on a September interest rate hike.
A Commerce Department report showed that annual U.S. inflation increased 3.7% in the 12 months through July, just above the 3.6% expected by analysts, while the economy grew 1.5% in the second quarter, a revised estimate showed.
The case for a Federal Reserve interest rate hike strengthened slightly after the data, with Fed funds futures showing about a 44% chance of a September rate increase, up from roughly 36% just before the data release.
European markets
In Europe, France's CAC 40 gained 0.4 per cent to 8,472.40, while the German DAX rose 0.2 per cent to 26,304.94. Britain's FTSE 100 slipped 0.2 per cent to 10,866.35.
The pan-European STOXX 600 was flat at 656.5, as luxury stocks led sectoral gains, up 1.2%.
Tech view
Nifty formed a dark cloud cover pattern on the daily timeframe, raising the possibility of a bearish move in the coming days, said Rupak De, Senior Technical Analyst at LKP Securities. He however noted that the broader trend remains positive as the index continues to trade within a rising channel. Today, the index found support just above the 50 EMA.
“Overall, range-bound trading continues, with sellers emerging at higher levels. The RSI has once again entered a bearish crossover. A fall below 24,130 could trigger a serious correction, potentially dragging Nifty towards 23,900 and 23,700. On the higher end, a rock-solid resistance is placed at 24,350. Only a sustained move above 24,350 could change the current perception; until then, choppiness is likely to prevail,” according to the analyst.
Most active stocks in terms of turnover
Groww (Rs 3,829 crore), Hindustan Copper (Rs 3,087 crore), BSE (Rs 1,609 crore), HDFC Bank (Rs 1,539 crore), Netweb Tech (Rs 1,405 crore), Varun Beverages (Rs 1,334 crore), and ICICI Bank (Rs 1,313 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: 47.87 crore), Groww (Traded shares: 19.51 crore), Sagility India (Traded shares: 9.5 crore), Ola Electric (Traded shares: 9.5 crore), IDBI Bank (Traded shares: 5.78 crore), Hindustan Copper (Traded shares: 5.65 crore), and Bank of Maharashtra (Traded shares: 6.63 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
SBFC Finance, Jindal Saw, IDBI Bank, Cyient, Capri Global, Hindustan Zinc and SAIL 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 Jindal Saw, Anthem Biosciences, Divis Labs, Karur Vysya Bank, Piramal Finance, JSW Steel and IPCA Labs.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Varun Beverages, Groww, Allied Blenders, Jubilant Food, Premier Energies, Tata Communications and Inventurus Knowledge Solutions.
52-week low
Among the ones which hit their 52-week lows on NSE included Groww and Sun TV.
Sentiment meter favours bulls
Out of the 3,645 stocks that traded on the NSE on August 26, Wednesday, 1,967 stocks witnessed advances, 1,548 saw declines while 130 stocks remained unchanged.
Also read | Vedanta Aluminium at earnings inflection point? Here's why Motilal Oswal sees 21% upside
(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 183 points to close at around 77,473 while Nifty 50 dropped 127 points or more than half a percent to end the session below 24,208. Broader markets ended mixed, with Nifty Smallcap 100 rising 0.8% while Nifty Midcap slipped into the red.
Here's how analysts read the market pulse
The domestic market ended lower, giving up early gains as sectoral divergence weighed on benchmarks through the session, said Vinod Nair, Head of Research at Geojit Investments. He noted that inflation concerns receded on tempered US sanctions on Iran, easing domestic bond yields and lifting banking stocks, while metals gained on better realization prospects.
However, these gains were largely offset by weakness in IT stocks after the US paused visa appointments amid an immigration crackdown which rekindled margin pressure concerns, according to the analyst. “Investors now await the US Core PCE print for greater clarity on the rate trajectory. A contained core reading would indicate that the recent energy-led inflation spike is transitory, easing rate concerns and supporting flows into emerging markets,” he further said.
Also read | Hindustan Zinc vs Hindalco: Why Jefferies raised target prices for both, but prefers one over the other
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US stocks
Wall Street's main indexes were subdued on Wednesday as investors stuck to the sidelines ahead of AI bellwether Nvidia's quarterly earnings, while hotter-than-expected inflation bolstered bets on a September interest rate hike.
A Commerce Department report showed that annual U.S. inflation increased 3.7% in the 12 months through July, just above the 3.6% expected by analysts, while the economy grew 1.5% in the second quarter, a revised estimate showed.
The case for a Federal Reserve interest rate hike strengthened slightly after the data, with Fed funds futures showing about a 44% chance of a September rate increase, up from roughly 36% just before the data release.
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European markets
In Europe, France's CAC 40 gained 0.4 per cent to 8,472.40, while the German DAX rose 0.2 per cent to 26,304.94. Britain's FTSE 100 slipped 0.2 per cent to 10,866.35.
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The pan-European STOXX 600 was flat at 656.5, as luxury stocks led sectoral gains, up 1.2%.
Tech view
Nifty formed a dark cloud cover pattern on the daily timeframe, raising the possibility of a bearish move in the coming days, said Rupak De, Senior Technical Analyst at LKP Securities. He however noted that the broader trend remains positive as the index continues to trade within a rising channel. Today, the index found support just above the 50 EMA.
“Overall, range-bound trading continues, with sellers emerging at higher levels. The RSI has once again entered a bearish crossover. A fall below 24,130 could trigger a serious correction, potentially dragging Nifty towards 23,900 and 23,700. On the higher end, a rock-solid resistance is placed at 24,350. Only a sustained move above 24,350 could change the current perception; until then, choppiness is likely to prevail,” according to the analyst.
Most active stocks in terms of turnover
Groww (Rs 3,829 crore), Hindustan Copper (Rs 3,087 crore), BSE (Rs 1,609 crore), HDFC Bank (Rs 1,539 crore), Netweb Tech (Rs 1,405 crore), Varun Beverages (Rs 1,334 crore), and ICICI Bank (Rs 1,313 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: 47.87 crore), Groww (Traded shares: 19.51 crore), Sagility India (Traded shares: 9.5 crore), Ola Electric (Traded shares: 9.5 crore), IDBI Bank (Traded shares: 5.78 crore), Hindustan Copper (Traded shares: 5.65 crore), and Bank of Maharashtra (Traded shares: 6.63 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
SBFC Finance, Jindal Saw, IDBI Bank, Cyient, Capri Global, Hindustan Zinc and SAIL 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 Jindal Saw, Anthem Biosciences, Divis Labs, Karur Vysya Bank, Piramal Finance, JSW Steel and IPCA Labs.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Varun Beverages, Groww, Allied Blenders, Jubilant Food, Premier Energies, Tata Communications and Inventurus Knowledge Solutions.
52-week low
Among the ones which hit their 52-week lows on NSE included Groww and Sun TV.
Sentiment meter favours bulls
Out of the 3,645 stocks that traded on the NSE on August 26, Wednesday, 1,967 stocks witnessed advances, 1,548 saw declines while 130 stocks remained unchanged.
Also read | Vedanta Aluminium at earnings inflection point? Here's why Motilal Oswal sees 21% upside
(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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