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

The Indian benchmark indices staged a strong recovery on Tuesday, after plunging to their worst decline in three months on Monday. The Sensex rose 230 points and the Nifty broke above the 23,700 level, fueled by advances in heavyweight financial stocks and Reliance Industries.

The benchmark BSE Sensex added 234.12 points or 0.30% to close at 78,199.11, while the broader Nifty 50 index closed at 23,707.90, higher by 91.85 points or 0.39%.

Here's how analysts read the market pulse:

Commenting on the day’s action, Vinod Nair, Head of Research at Geojit Financial Services said that amid positive global cues indicating no major concerns regarding HMPV, the domestic market partially recovered from yesterday's sharp sell-off but traded within a range ahead of the critical first advance estimates for India's FY25 GDP.

“This comes in the context of moderated growth expectations, as the RBI recently revised its growth projection downwards. In the near term, the market is expected to remain cautious, awaiting signs of earnings recovery during the upcoming result season, while also dealing with ongoing FII selling which is driven by the strengthening dollar, rising US bond yields, and reduced expectations of further rate cuts," Nair added.

US markets

Wall Street's major indexes edged lower on Tuesday, dragged by technology stocks, as stronger-than-expected economic data fueled uncertainty about the Federal Reserve's approach to monetary policy easing this year.

The Labor Department reported 8.098 million job openings in November, surpassing economists' expectations of 7.7 million. This economic resilience has delayed expectations for the Fed’s first interest rate cut, now anticipated in June, according to CME Group's FedWatch tool.

Rising yields added pressure, with the 10-year Treasury note climbing to 4.677%, its highest since May 2024. Rate-sensitive sectors like financials and real estate dipped, while technology stocks fell 0.8%, led by Nvidia’s 2.6% decline.

European stocks

European shares ended higher on Tuesday, supported by gains in the energy sector, as investors analyzed a mixed batch of economic data reflecting the region's economic health.

The benchmark European index rose 0.3% to close at 513.08 points, its highest level in three weeks, amid speculation about the impact of rising inflation and upcoming interest rate decisions.

Fresh data revealed an expected uptick in eurozone inflation for December, adding complexity to the region’s economic outlook.

Tech View

The Nifty bounced from its immediate and critical support at the 23500 level, said Praveen Dwarakanath, Vice President of Hedged.in, adding that the bounce during the day was sold off, however, the index closed positive, indicating signs of a further upside move towards the 23800 level.

“The index formed an insider candle after a fall of more than 1.7% in the previous candle. The momentum indicators on the daily chart are rising from the oversold region, indicating a possible bounce from the current levels. Options writer's data for the Jan monthly expiry showed increased writing of the puts at the 23800 level, suggesting bullishness in the index,” said Dwarakanath.

Most active stocks in terms of turnover

Zomato (Rs 2,925.94 crore), Aegis Logistics (Rs 1,861.60 crore), Intellect Design (Rs 1,628.84 crore), ONGC (Rs 1,402.04 crore), Reliance Industries (Rs 1,246.36 crore), Amber Enterprises (Rs 1,234.89 crore) and Tata Motors (Rs 1,224.56 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 highest trading turnovers in the day.

Most active stocks in volume terms

Vodafone Idea (Traded shares: 37.41 crore), Zomato (Traded shares: 11.52 crore), Easy Trip Planners (Traded shares: 8.02 crore), YES Bank (Traded shares: 6.73 crore), Suzlon Energy (Traded shares: 5.91 crore), ONGC (Traded shares: 5.29 crore) and NMDC (Traded shares: 3.87 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of Kirloskar Brothers, Aegis Logistics, Intellect Design, PTC Industries, Rashtriya Chemicals, Vijaya Diagnostic and Biocon were among the stocks that witnessed strong buying interest from market participants.

52 Week high

Over 131 stocks hit their 52 week highs today while 101 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Aegis Logistics, PTC Industries, Amber Enterprises, Apar Industries, Firstsource Solutions, Krishna Institute of Medical Sciences and Laurus Labs.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were ITI, KEC International, Zomato, Info Edge, 360 One Wam, Blue Star and Kalyan Jewellers India.

Sentiment meter favours bulls

The market sentiments were bullish. Out of the 4,086 stocks that traded on the BSE on Tuesday, 1,378 stocks witnessed declines, 2,603 saw advances, while 105 stocks remained unchanged.

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