Ahead of Market: 10 things that will decide stock market action on Tuesday
Indian equities extended losses, with Sensex falling 281 points and Nifty declining for a fifth session. Analysts flagged crude prices, Strait of Hormuz tensions and Fed minutes as key drivers. Broader markets gained, while market breadth remained...
By Debaroti Adhikary, ETMarkets.com |
ETMarkets.com
Indian markets remained volatile as geopolitical tensions and crude oil prices weighed on sentiment, while broader indices gained despite continued weakness in benchmark stocks.
The Indian stock market extended losses on Monday, with Sensex falling for a second straight session and the Nifty declining for the fifth consecutive session, although the benchmark indices sharply recovered from intraday lows.
Sensex dropped 281 points to close at 77,728, while Nifty 50 lost 78 points to end the session at 24,288 on Monday. Broader markets however bucked the trend to close in the green, with Nifty Smallcap 100 and Nifty Midcap 100 rising up to 0.3%.
Here's how analysts read the market pulse
“Indian equities are likely to remain range-bound as the market shifts focus from the concluded Q1FY27 earnings season to global macro and geopolitical developments. The Strait of Hormuz and the trajectory of crude oil prices will remain the key near-term drivers, as conflicting US-Iran positions have clouded prospects of a near-term resolution, raising risks of elevated crude prices. Investors will also track the US Federal Reserve's July meeting minutes this week for cues on the global interest-rate outlook,” said Siddhartha Khemka, Head of Research on Wealth Management at Motilal Oswal Financial Services.
US stocks
U.S. stocks were mixed on Monday and the dollar fell to its lowest level since June, after a run of soft U.S. economic data, including an unexpected drop in retail sales, led markets to scale back bets on an imminent Fed rate move.
Tehran will escalate tensions in the Strait of Hormuz and the wider region if diplomacy with the United States fails, a senior Iranian official told Reuters, pointing to an Iranian policy shift relying on offense rather than defense.
Markets will keep a close eye on results from chipmaker Nvidia, the most valuable company in the world, for signs on whether the tech-driven momentum can last. Its shares rose 0.2% in early trading.
European markets
MSCI's gauge of stocks across the globe was flat on the day, while the pan-European STOXX 600 Index fell 0.06%.
Tech view
“Nifty closed lower following a volatile session, extending its streak of lower closes. The near-term trend remains weak as the index continues to sustain below the crucial resistance level of 24,400. In the coming days, the trend is likely to remain weak as long as the index stays below 24,400. On the lower end, support is placed at 24,225, below which the correction could extend towards 24,190/24,050. Overall, the bias is likely to remain volatile,” said Rupak De, Senior Technical Analyst at LKP Securities.
Most active stocks in terms of turnover
BSE (Rs 2,560 crore), RIL (Rs 1,751 crore), Hindustan Copper (Rs 1,648 crore), Lenskart Solutions (Rs 1,327 crore), Ipca Labs (Rs 1,305 crore), Physicswallah (Rs 1,282 crore) and Bharti Airtel (Rs 1,099 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: 31.04 crore), Physicswallah (Traded shares: 10.37 crore), Suzlon Energy (Traded shares: 8.05 crore), Yes Bank (Traded shares: 5.82 crore), Zee Entertainment Enterprises (Traded shares: 5.6 crore), NMDC (Traded shares: 4.07 crore), and Ola Electric (Traded shares: 3.99 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Ipca Labs, Hindustan Copper, PTC Industries, Godawari Power, Inox Wind, Finolex Cables and Motilal Oswal 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 Ipca Labs, PTC Industries, KEI Industries, Neuland Labs, Ajanta Pharma, Radico Khaitan and Anthem Biosciences.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Schneider, Belrise Industries, NMDC Steel, Aditya Infotech, J&K Bank, Honasa Consumer and Voltas.
52-week low
Among the ones which hit their 52-week lows on NSE included ITC, KEC International, IRB Infra Dev., Dabur India, Aditya Birla Lifestyle and Bayer Cropsciences.
Sentiment meter favours bears
Out of the 3,623 stocks that traded on the NSE on August 17, Monday, 1,683 stocks witnessed advances, 1,825 saw declines while 115 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 dropped 281 points to close at 77,728, while Nifty 50 lost 78 points to end the session at 24,288 on Monday. Broader markets however bucked the trend to close in the green, with Nifty Smallcap 100 and Nifty Midcap 100 rising up to 0.3%.
Here's how analysts read the market pulse
“Indian equities are likely to remain range-bound as the market shifts focus from the concluded Q1FY27 earnings season to global macro and geopolitical developments. The Strait of Hormuz and the trajectory of crude oil prices will remain the key near-term drivers, as conflicting US-Iran positions have clouded prospects of a near-term resolution, raising risks of elevated crude prices. Investors will also track the US Federal Reserve's July meeting minutes this week for cues on the global interest-rate outlook,” said Siddhartha Khemka, Head of Research on Wealth Management at Motilal Oswal Financial Services.
US stocks
U.S. stocks were mixed on Monday and the dollar fell to its lowest level since June, after a run of soft U.S. economic data, including an unexpected drop in retail sales, led markets to scale back bets on an imminent Fed rate move.
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Tehran will escalate tensions in the Strait of Hormuz and the wider region if diplomacy with the United States fails, a senior Iranian official told Reuters, pointing to an Iranian policy shift relying on offense rather than defense.
Markets will keep a close eye on results from chipmaker Nvidia, the most valuable company in the world, for signs on whether the tech-driven momentum can last. Its shares rose 0.2% in early trading.
European markets
MSCI's gauge of stocks across the globe was flat on the day, while the pan-European STOXX 600 Index fell 0.06%.
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Tech view
“Nifty closed lower following a volatile session, extending its streak of lower closes. The near-term trend remains weak as the index continues to sustain below the crucial resistance level of 24,400. In the coming days, the trend is likely to remain weak as long as the index stays below 24,400. On the lower end, support is placed at 24,225, below which the correction could extend towards 24,190/24,050. Overall, the bias is likely to remain volatile,” said Rupak De, Senior Technical Analyst at LKP Securities.
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Most active stocks in terms of turnover
BSE (Rs 2,560 crore), RIL (Rs 1,751 crore), Hindustan Copper (Rs 1,648 crore), Lenskart Solutions (Rs 1,327 crore), Ipca Labs (Rs 1,305 crore), Physicswallah (Rs 1,282 crore) and Bharti Airtel (Rs 1,099 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: 31.04 crore), Physicswallah (Traded shares: 10.37 crore), Suzlon Energy (Traded shares: 8.05 crore), Yes Bank (Traded shares: 5.82 crore), Zee Entertainment Enterprises (Traded shares: 5.6 crore), NMDC (Traded shares: 4.07 crore), and Ola Electric (Traded shares: 3.99 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Ipca Labs, Hindustan Copper, PTC Industries, Godawari Power, Inox Wind, Finolex Cables and Motilal Oswal 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 Ipca Labs, PTC Industries, KEI Industries, Neuland Labs, Ajanta Pharma, Radico Khaitan and Anthem Biosciences.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Schneider, Belrise Industries, NMDC Steel, Aditya Infotech, J&K Bank, Honasa Consumer and Voltas.
52-week low
Among the ones which hit their 52-week lows on NSE included ITC, KEC International, IRB Infra Dev., Dabur India, Aditya Birla Lifestyle and Bayer Cropsciences.
Sentiment meter favours bears
Out of the 3,623 stocks that traded on the NSE on August 17, Monday, 1,683 stocks witnessed advances, 1,825 saw declines while 115 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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