Ahead of Market: 10 things that will decide stock market action on Tuesday
Indian equities ended lower after erasing early gains, with Sensex falling 172 points and Nifty 33 points. Rising bond yields, Iran sanctions uncertainty and weak Asian markets pressured sentiment. Metals outperformed, while banking stocks lagged....
By Debaroti Adhikary, ETMarkets.com |
ETMarkets.com
Indian markets closed lower as geopolitical tensions, rising bond yields and weak Asian cues weighed on sentiment, with analysts warning of heightened volatility on Tuesday.
The Indian stock market erased all early gains to close in the red, with Sensex and Nifty dropping around 0.2% each on Monday.
Sensex lost around 172 points to close at 77,369 while Nifty 50 dropped 33 points to end the session at 24,219 on Monday. Broader markets were mixed, with Nifty Smallcap 100 closing 0.3% lower and Nifty Midcap 100 ending marginally higher.
Here's how analysts read the market pulse
Caution dominated market sentiment as investors are awaiting fresh sanctions from the US on Iran later today, said Vinod Nair, Head of Research at Geojit Investments. He noted that Brent crude eased on profit-taking but remained above the $90 per barrel mark, supported by concerns over tighter Iranian oil supplies and ongoing tensions around the Strait of Hormuz.
“Against this backdrop, coupled with the RBI's recent hawkish stance, domestic bond yields moved higher, dampening risk appetite. Tracking weak Asian markets, Indian equities drifted lower through the day, with large caps underperforming broader markets. Sectorally, metals outperformed on firm commodity prices, while banking stocks came under pressure, with PSU banks trailing their private-sector counterparts amid mark-to-market losses driven by the rise in sovereign bond yields,” the analyst further said.
US stocks
The S&P 500 and the tech-heavy Nasdaq slipped on Monday as investors weighed the potential fallout from the U.S. pledge of an "economic D-Day" against Iran while awaiting AI giant Nvidia's results and a key inflation report later this week.
The moves mark a sober start to a pivotal week that may determine whether equities can shrug off a flare-up in Middle East tensions and worries tied to a tense bond market, which have interrupted their rally.
The U.S. has said it could roll out economic sanctions targeting Iran's trade partners, in what it called "the greatest financial offensive ever."
European markets
European shares were little changed on Monday as higher gold prices lent support, though uncertainty surrounding impending U.S. sanctions on Iran kept risk appetite in check.
The pan-European STOXX 600 was down marginally at 654.16 points.
Tech view
Nifty slipped lower after a positive start as traders trimmed their positions ahead of the new US sanctions on Iran, said Rupak De, Senior Technical Analyst at LKP Securities. “The Nifty slipped below the 24,200 support level on an intraday basis before reclaiming it on a closing basis. Going into Tuesday, the market is likely to remain highly volatile as traders adjust their positions based on new US sanctions measures on Iran and Iran’s possible response. This high-stakes event will coincide with the high-stakes NSE monthly F&O expiry. Therefore, expect a volatile Tuesday. On the lower end, support is placed at 24,200/24,000. On the higher end, 24,350 might act as a crucial resistance level, above which the Nifty could witness a meaningful rally,” he added.
Most active stocks in terms of turnover
LT Foods (Rs 1,969 crore), Vishal Mega Mart (Rs 1,745 crore), Netweb Technologies (Rs 1,510 crore), Welspun Corp (Rs 1,449 crore), BSE (Rs 1,427 crore), MCX India (Rs 1,103 crore), and Urban Company (Rs 1,088 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: 22.93 crore), Vishal Mega Mart (Traded shares: 15.46 crore), IDBI Bank (Traded shares: 7.27 crore), Urban Company (Traded shares: 6.47 crore), SAIL (Traded shares: 4.82 crore), L&T Foods (Traded shares: 4.19 crore), and Yes Bank (Traded shares: 4.1 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Vishal Mega Mart, L&T Foods, IDBI Bank, Urban Company, Muthoot Finance, Hexaware Technologies and PTC Industries 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 L&T Foods, PTC Industries, Siemens, HFCL, Welspun Corp, Redington and Aarti Industries.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were BLS International Services, Aegis Logistics, Schneider, Balrampur Chini, Gabriel India, Carborundum Uni and Five-Star Business.
52-week low
Among the ones which hit their 52-week lows on NSE included Brainbees Solutions, Aditya Birla Lifestyle, Sun TV, Dabur India, IRCTC, IRB Infra Dev. and IndiaMart.
Sentiment meter favours bears
Out of the 3,673 stocks that traded on the NSE on August 24, Monday, 1,740 stocks witnessed advances, 1,820 saw declines while 113 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 172 points to close at 77,369 while Nifty 50 dropped 33 points to end the session at 24,219 on Monday. Broader markets were mixed, with Nifty Smallcap 100 closing 0.3% lower and Nifty Midcap 100 ending marginally higher.
Here's how analysts read the market pulse
Caution dominated market sentiment as investors are awaiting fresh sanctions from the US on Iran later today, said Vinod Nair, Head of Research at Geojit Investments. He noted that Brent crude eased on profit-taking but remained above the $90 per barrel mark, supported by concerns over tighter Iranian oil supplies and ongoing tensions around the Strait of Hormuz.
“Against this backdrop, coupled with the RBI's recent hawkish stance, domestic bond yields moved higher, dampening risk appetite. Tracking weak Asian markets, Indian equities drifted lower through the day, with large caps underperforming broader markets. Sectorally, metals outperformed on firm commodity prices, while banking stocks came under pressure, with PSU banks trailing their private-sector counterparts amid mark-to-market losses driven by the rise in sovereign bond yields,” the analyst further said.
US stocks
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The S&P 500 and the tech-heavy Nasdaq slipped on Monday as investors weighed the potential fallout from the U.S. pledge of an "economic D-Day" against Iran while awaiting AI giant Nvidia's results and a key inflation report later this week.
The moves mark a sober start to a pivotal week that may determine whether equities can shrug off a flare-up in Middle East tensions and worries tied to a tense bond market, which have interrupted their rally.
The U.S. has said it could roll out economic sanctions targeting Iran's trade partners, in what it called "the greatest financial offensive ever."
European markets
ADVERTISEMENT
European shares were little changed on Monday as higher gold prices lent support, though uncertainty surrounding impending U.S. sanctions on Iran kept risk appetite in check.
The pan-European STOXX 600 was down marginally at 654.16 points.
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Tech view
Nifty slipped lower after a positive start as traders trimmed their positions ahead of the new US sanctions on Iran, said Rupak De, Senior Technical Analyst at LKP Securities. “The Nifty slipped below the 24,200 support level on an intraday basis before reclaiming it on a closing basis. Going into Tuesday, the market is likely to remain highly volatile as traders adjust their positions based on new US sanctions measures on Iran and Iran’s possible response. This high-stakes event will coincide with the high-stakes NSE monthly F&O expiry. Therefore, expect a volatile Tuesday. On the lower end, support is placed at 24,200/24,000. On the higher end, 24,350 might act as a crucial resistance level, above which the Nifty could witness a meaningful rally,” he added.
Most active stocks in terms of turnover
LT Foods (Rs 1,969 crore), Vishal Mega Mart (Rs 1,745 crore), Netweb Technologies (Rs 1,510 crore), Welspun Corp (Rs 1,449 crore), BSE (Rs 1,427 crore), MCX India (Rs 1,103 crore), and Urban Company (Rs 1,088 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: 22.93 crore), Vishal Mega Mart (Traded shares: 15.46 crore), IDBI Bank (Traded shares: 7.27 crore), Urban Company (Traded shares: 6.47 crore), SAIL (Traded shares: 4.82 crore), L&T Foods (Traded shares: 4.19 crore), and Yes Bank (Traded shares: 4.1 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Vishal Mega Mart, L&T Foods, IDBI Bank, Urban Company, Muthoot Finance, Hexaware Technologies and PTC Industries 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 L&T Foods, PTC Industries, Siemens, HFCL, Welspun Corp, Redington and Aarti Industries.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were BLS International Services, Aegis Logistics, Schneider, Balrampur Chini, Gabriel India, Carborundum Uni and Five-Star Business.
52-week low
Among the ones which hit their 52-week lows on NSE included Brainbees Solutions, Aditya Birla Lifestyle, Sun TV, Dabur India, IRCTC, IRB Infra Dev. and IndiaMart.
Sentiment meter favours bears
Out of the 3,673 stocks that traded on the NSE on August 24, Monday, 1,740 stocks witnessed advances, 1,820 saw declines while 113 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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