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

The Indian stock market recorded sharp gains on Monday, with Sensex and Nifty extending their rise for the fourth consecutive session as heavy rainfall revived monsoon hopes, FIIs turned net buyers and other factors further boosted investor sentiment.

Sensex jumped over 521 points to close at around 78,285 while Nifty 50 gained nearly 160 points to end the session at 24,430. The sharp gains added more than Rs 2 lakh crore to the total market capitalisation of all companies listed on the NSE, pulling it up to Rs 482 lakh crore.

Also read: Why market rose on Monday?


Here's how analysts read the market pulse

Indian equities traded with a positive bias despite mixed global cues, supported by stable crude prices, said Vinod Nair, Head of Research at Geojit Investments. He added that continued softness in crude would support inflation, the current account balance, OMC profitability, and overall macro stability.

“Globally, profit-booking in crowded AI-led trades impacted the global market while India could perform well led by large caps due to improvement in FIIs inflows trend. On the domestic front, financials, autos, realty, and oil & gas led the gains. Financials were supported by expectations of healthy private bank earnings, while autos benefited from strong volume trends and improving demand outlook. Realty remained buoyed by resilient housing demand,” according to the analyst.

US stocks

The S&P 500 and the Nasdaq rose on Monday as chip stocks rebounded, with Broadcom advancing after extending its partnership with Apple, while investors looked ahead to the start of the second-quarter earnings season.

The Dow briefly hit a fresh intraday record early in the session before reversing course. The blue-chip index ‌posted a record closing ⁠high on ⁠Thursday.

Broadcom climbed 4% after the chipmaker and Apple agreed to extend their deal through 2031 to develop and supply a range of custom chips.

The S&P 500 information technology sector ​rose 1.9%, while the Philadelphia SE Semiconductor index was up 3.8%, recovering after two straight sessions of losses.

European markets

Europe's STOXX 600 slipped 0.6% ​after touching a record high earlier in the session. Defence stocks were among top sectoral gainers, up 1.3%, as Russia's conflict with Ukraine showed no signs of easing. Investors bought defence shares on expectations that simmering geopolitical tensions would aid the sector.

Tech view

Nifty remained strong throughout the session after opening on a positive note, said Rupak De, Senior Technical Analyst at LKP Securities. He noted that the benchmark index sustained its uptrend by holding above its critical short-term moving average and, notably, closed above the medium-term 50-week EMA for the first time in more than four months, indicating improving market strength.

“Market sentiment remains positive, supported by the decline in the India VIX, which reflects improving investor confidence. In the short term, the Nifty is likely to extend its gains towards the next crucial resistance at 24,800. On the downside, immediate support is placed at 24,300,” he added.

Most active stocks in terms of turnover

HDFC Bank (Rs 5,211 crore), ICICI Bank (Rs 1,755 crore), Dixon Tech (Rs 1,674 crore), BSE (Rs 1,415 crore), Kotak Mahindra Bank (Rs 1,309 crore), Adani Power (Rs 1,175 crore) and Welspun Corp (Rs 1,038 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: 28.13 crore), Ola Electric Mobility (Traded shares: 11.70 crore), Yes Bank (Traded shares: 7.33 crore), Suzlon Energy (Traded shares: 7.31 crore), HDFC Bank (Traded shares: 6.32 crore), Adani Power (Traded shares: 5.30 crore) and JP Power (3.45 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Aegis Vopak Terminal, Swan Energy, Allied Blenders, Welspun Corp, Dixon Tech, Aegis Logistics and Zen Tech 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 Allied Blenders, Welspun Corp, Aegis Logistics, Radico Khaitan, Manappuram Finance, ITD Cementation and HFCL.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Zensar Tech, Ami Organics, Ola Electric Mobility, Varun Beverages, Tejas Networks, Kotak Mahindra Bank and Belrise Industries.

52-week low

Among the ones that hit their 52-week lows on NSE included KPIT Tech.

Sentiment meter favours bears

Out of the 3,452 stocks that traded on the NSE on July 6, Monday, 1,578 stocks witnessed advances, 1,769 saw declines while 115 stocks remained unchanged.

Also read: Midcap stocks ignore Middle East war, AI worries to jump up to 85% in 2026. More rally or sharp correction ahead?

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