Ahead of Market: 10 things that will decide stock market action on Tuesday
Indian equities recovered sharply from Friday’s lows as easing oil prices and bond yields lifted sentiment. Sensex and Nifty closed lower, while weak breadth, foreign outflows and geopolitical risks kept bears in control despite selective buying a...
By Debaroti Adhikary, ETMarkets.com |
iStock
Nifty recovered sharply from its intraday low as oil and bond yields cooled, but weak breadth, foreign outflows and geopolitical risks capped sentiment on Friday.
After Sensex and Nifty crashed 1% on Friday morning, the Indian benchmark indices sharply recovered most of their losses to closer with slight cuts in the afternoon as oil prices and bond yields cooled off following a report on efforts to reach a temporary Iran-US deal.
Sensex, which had dropped around 740 points in the morning, recovered 622 points to close at 74,782. Nifty 50, which had fallen below 23,250, rebounded 167 points to end the session near 23,400. Despite the sharp recovery, the Indian stock market overall closed in the red, with Sensex down 121 points and Nifty down 80 points.
Also read | Dividends and stock splits: Hindustan Copper, Cochin Shipyard among 200+ stocks with record dates this week. Check full list
Here's how analysts read the market pulse
A sharp spike in crude oil prices and concerns over a higher global rate environment weighed on domestic equities, extending the recent corrective trend, said Vinod Nair, Head of Research at Geojit Investments. He noted that the higher producer inflation and strong US economic data reinforced expectations of tighter monetary policy, pushing bond yields higher and sustaining FII outflows.
“However, the market recovered from intraday lows, aided by value buying in select sectors, particularly IT, following a positive opening in European markets. Despite the rebound, weak market breadth suggests broader consolidation persists. While elevated crude prices, foreign outflows, and geopolitical uncertainty may keep volatility high, resilient domestic fundamentals and strong institutional support continue to attract buying at lower levels, limiting downside risks and supporting the medium-term outlook,” he said.
US stocks
Wall Street's main indexes fell on Monday, weighed by a selloff in key AI stocks after top U.S. executives cited safety risks and called for a slowdown in the development of artificial-intelligence models.
Shares of Nvidia tumbled 3.2%, hitting their lowest in nearly three weeks, while "Magnificent Seven" peer Amazon shed about 1%.
Anthropic CEO Dario Amodei on Saturday called on artificial intelligence companies to slow the pace at which they advance model capabilities. Elon Musk, who runs xAI, and OpenAI CEO Sam Altman said they agreed with Amodei.
The losses reflect waning exuberance after a frenzied race to develop increasingly capable AI models gives way to a sober reassessment.
European markets
In Europe, the STOXX 600 was down 0.34% as gains in oil and gas stocks were offset by losses in tech, which were swept lower after the concerns expressed in a letter by Anthropic CEO Dario Amodei, echoed by Elon Musk, who runs xAI, and Sam Altman, CEO of OpenAI.
Tech view on Nifty
Nifty on the daily chart formed a bullish candle with a lower high and a lower low, said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking. He noted that the index opened lower and formed an intraday low of 23,231 in opening trade. Nifty recovered more than 150 points from the day low to close the session marginally lower around 23,400 levels.
“Going ahead, strength above 23,500 will signal pullback towards 23,650 levels in the coming sessions. Failure to do so will signal some consolidation in the range of 23,230-23,500. Immediate bias in the index remains down and a follow-through weakness below last week low 23,231 will open downside towards the short-term support placed around the June low of 23,070 levels in coming week. Only a formation of higher high and higher low on a sustained basis in the daily chart will signal a pause in the current down trend,” he added.
Also read | Vodafone Idea shares zoom 102% in one year. Is there more steam left after multibagger returns?
Most active stocks in terms of turnover
Pine Labs (Rs 5,309 crore), HDFC Bank (Rs 2,178 crore), Paytm (Rs 1,663 crore), BSE (Rs 1,408 crore), RIL (Rs 1,105 crore), ICICI Bank (Rs 975 crore) and IFCI (Rs 922 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: 54.79 crore), Pine Labs (Traded shares: 27.67 crore), Yes Bank (Traded shares: 23.48 crore), IFCI (Traded shares: 11.09 crore), Suzlon Energy (Traded shares: 5.28 crore), Ola Electric (Traded shares: 4.87 crore) and Physicswallah (Traded shares: 4.12 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Pine Labs, Physicswallah, Authum Investment, PTC Industries, Yes Bank, Sun TV and Indus Towers 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 Paytm, Laurus Labs, Granules India, Finolex Cables and Chennai Petro.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Cochin Shipyard, Godrej Properties, HEG, PI Industries, Whirlpool India, Century Textiles and Supreme Industries.
52-week low
Among the ones which hit their 52-week lows on NSE included HEG, PI Industries, Bikaji Foods International, Afcons Infrastructure, IEX, IRCON and FirstCry.
Sentiment meter favours bears
Out of the 3,638 stocks that traded on the NSE on September 11, Friday, 1,473 stocks witnessed advances, 2,039 stocks saw declines while 126 stocks remained unchanged.
Also read | Will US 10-year bond yield crossing 5% really hurt markets? Yes Securities says fears overblown
Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
Sensex, which had dropped around 740 points in the morning, recovered 622 points to close at 74,782. Nifty 50, which had fallen below 23,250, rebounded 167 points to end the session near 23,400. Despite the sharp recovery, the Indian stock market overall closed in the red, with Sensex down 121 points and Nifty down 80 points.
Also read | Dividends and stock splits: Hindustan Copper, Cochin Shipyard among 200+ stocks with record dates this week. Check full list
Here's how analysts read the market pulse
A sharp spike in crude oil prices and concerns over a higher global rate environment weighed on domestic equities, extending the recent corrective trend, said Vinod Nair, Head of Research at Geojit Investments. He noted that the higher producer inflation and strong US economic data reinforced expectations of tighter monetary policy, pushing bond yields higher and sustaining FII outflows.
“However, the market recovered from intraday lows, aided by value buying in select sectors, particularly IT, following a positive opening in European markets. Despite the rebound, weak market breadth suggests broader consolidation persists. While elevated crude prices, foreign outflows, and geopolitical uncertainty may keep volatility high, resilient domestic fundamentals and strong institutional support continue to attract buying at lower levels, limiting downside risks and supporting the medium-term outlook,” he said.
ADVERTISEMENT
US stocks
Wall Street's main indexes fell on Monday, weighed by a selloff in key AI stocks after top U.S. executives cited safety risks and called for a slowdown in the development of artificial-intelligence models.
Shares of Nvidia tumbled 3.2%, hitting their lowest in nearly three weeks, while "Magnificent Seven" peer Amazon shed about 1%.
Anthropic CEO Dario Amodei on Saturday called on artificial intelligence companies to slow the pace at which they advance model capabilities. Elon Musk, who runs xAI, and OpenAI CEO Sam Altman said they agreed with Amodei.
ADVERTISEMENT
The losses reflect waning exuberance after a frenzied race to develop increasingly capable AI models gives way to a sober reassessment.
European markets
ADVERTISEMENT
In Europe, the STOXX 600 was down 0.34% as gains in oil and gas stocks were offset by losses in tech, which were swept lower after the concerns expressed in a letter by Anthropic CEO Dario Amodei, echoed by Elon Musk, who runs xAI, and Sam Altman, CEO of OpenAI.
Tech view on Nifty
Nifty on the daily chart formed a bullish candle with a lower high and a lower low, said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking. He noted that the index opened lower and formed an intraday low of 23,231 in opening trade. Nifty recovered more than 150 points from the day low to close the session marginally lower around 23,400 levels.
“Going ahead, strength above 23,500 will signal pullback towards 23,650 levels in the coming sessions. Failure to do so will signal some consolidation in the range of 23,230-23,500. Immediate bias in the index remains down and a follow-through weakness below last week low 23,231 will open downside towards the short-term support placed around the June low of 23,070 levels in coming week. Only a formation of higher high and higher low on a sustained basis in the daily chart will signal a pause in the current down trend,” he added.
Also read | Vodafone Idea shares zoom 102% in one year. Is there more steam left after multibagger returns?
Most active stocks in terms of turnover
Pine Labs (Rs 5,309 crore), HDFC Bank (Rs 2,178 crore), Paytm (Rs 1,663 crore), BSE (Rs 1,408 crore), RIL (Rs 1,105 crore), ICICI Bank (Rs 975 crore) and IFCI (Rs 922 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: 54.79 crore), Pine Labs (Traded shares: 27.67 crore), Yes Bank (Traded shares: 23.48 crore), IFCI (Traded shares: 11.09 crore), Suzlon Energy (Traded shares: 5.28 crore), Ola Electric (Traded shares: 4.87 crore) and Physicswallah (Traded shares: 4.12 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Pine Labs, Physicswallah, Authum Investment, PTC Industries, Yes Bank, Sun TV and Indus Towers 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 Paytm, Laurus Labs, Granules India, Finolex Cables and Chennai Petro.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Cochin Shipyard, Godrej Properties, HEG, PI Industries, Whirlpool India, Century Textiles and Supreme Industries.
52-week low
Among the ones which hit their 52-week lows on NSE included HEG, PI Industries, Bikaji Foods International, Afcons Infrastructure, IEX, IRCON and FirstCry.
Sentiment meter favours bears
Out of the 3,638 stocks that traded on the NSE on September 11, Friday, 1,473 stocks witnessed advances, 2,039 stocks saw declines while 126 stocks remained unchanged.
Also read | Will US 10-year bond yield crossing 5% really hurt markets? Yes Securities says fears overblown
Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
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
