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

The Indian stock market closed in the green on Tuesday, as Sensex and Nifty clocked a 4% rally over three consecutive sessions amid optimism around the Iran-US peace deal framework. Sensex jumped more than 540 points to close at 76,809, while Nifty 50 rose more than 135 points to end the session at 23,989. Broader markets also gained sharply, with Nifty Midcap 100 and Nifty Smallcap 100 indices gaining 0.4% each, as India VIX, which measures market volatility, tumbled 7% to 13.40.

Here's how analysts read the market pulse
"Domestic equity markets continued their recovery momentum, buoyed by growing optimism around a de-escalation in US–Iran tensions and softening crude oil prices," said Vinod Nair, Head of Research at Geojit Investments. He highlighted that the rally was broad-based, with notable gains in IT, realty, FMCG and oil & gas sectors. Metal stocks, however, lagged behind, weighed down by a sharp pullback in global metal prices as supply-side concerns began to subside, he noted. “Investor sentiment remains measured ahead of the upcoming US Fed policy meeting, the first under the newly appointed Chair. While the benchmark interest rate is widely anticipated to hold steady, market participants will pay close attention to the forward guidance and commentary on the trajectory of monetary policy,” according to the analyst.


US Stocks
The blue-chip Dow touched an intraday record high on Tuesday as oil prices slid further on optimism around a U.S.-Iran peace deal, while SpaceX surpassed Amazon's market value to become the fifth-most valuable U.S. firm.

Shares of SpaceX climbedalmost 9.5%, helping the companyovertake Amazon's market value. Memory chip stocks rose, with Western Digital and Seagate Technology adding 9% and 6%, respectively.

The energy index lost 0.4% as oil prices dropped to nearly a three-month low. U.S. stocks rallied after U.S. President Donald Trump said a preliminary agreement to end ⁠the conflict had ‌been signed.

Markets will next turn to the Federal Reserve's monetary policy decision on ⁠Wednesday.The central bank is widely expected to hold interest rates at the 3.50-3.75% range, with investors closely watching Warsh's comments on inflation, unemployment and the economic outlook.

European markets
European shares edged higher on Tuesday, following up on the previous session's rally sparked by a preliminary agreement between the U.S. and Iran that could allow a resumption of oil flows through the Strait of ‌Hormuz.

Germany's DAX rose 36.39 points, or 0.15%, to 24,930.40, Britain's FTSE gained 67.72 points, or 0.65%, to 10,498.34, France's CAC advanced 60.84 points, or 0.73%, to 8,444.85, and the STOXX 600 climbed 1.61 points, or 0.25%, to 636.05.

Tech view
"Following a positive start, Nifty 50 maintained its strength throughout the day. On the hourly chart, the Nifty has been sustaining above the 20 EMA, indicating a positive short-term trend. Overall, the index remained range-bound during the weekly NSE options expiry session. The near-term sentiment continues to be positive; however, the upside may remain limited, with choppy price action likely to persist. On the higher side, immediate resistance is placed in the 24,070–24,200 zone, where the Nifty may encounter selling pressure. On the downside, immediate support is placed at 23,900, followed by 23,700,” said Rupak De, Senior Technical Analyst at LKP Securities.

Most active stocks in terms of turnover
Reliance Industries (Rs 2,456 crore), HDFC Bank (Rs 2,182 crore), ICICI Bank (Rs 1,740 crore), Suzlon Energy (Rs 1,694 crore), Netweb Technologies (Rs 1,502 crore), Dr Lal Pathlabs (Rs 1,498 crore), and FACT (Rs 1,327 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: 49.24 crore), Suzlon Energy (Traded shares: 29.24 crore), Yes Bank (Traded shares: 21.94 crore), Ola Electric (Traded shares: 14.83 crore), IFCI (Traded shares: 14.70 crore), MMTC (Traded shares: 11.41 crore) and JP Power (Traded shares: 8.76 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest
Sonata Software, FACT, MMTC, PG Electroplast, Century Textiles, Netweb Technologies and Brigade Enterprises 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 FACT, MMTC, Kalpataru Power, Bandhan Bank, Capri Global, Dr Lal Pathlabs and Aditya Birla Capital.

Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were GIC, PTC Industries, NALCO, Akums Drugs, Minda Industries, Ramco Cements and Hindalco Industries.

52-week low
Among the ones that hit their 52-week lows on NSE included Bayer Cropsciences and P&G.

Sentiment meter favours bulls
Out of the 3,416 stocks that traded on the NSE on June 16, Tuesday, 1,956 stocks witnessed advances, 1,356 saw declines while 104 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)