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

The Indian stock market closed in the red for the second consecutive session on Tuesday, with Sensex and Nifty falling around 0.3% each on the latter’s monthly expiry day. Sensex dropped nearly 250 points to end the session at 76,479, while Nifty 50 declined over 80 points to close at 23,866 on Tuesday. This came as India VIX, which measures volatility in the market, fell slightly to 13.48.

Here's how analysts read the market pulse
The domestic market remained in a consolidation phase, trading within a narrow range and exhibiting a mixed trend, said Vinod Nair, Head of Research at Geojit Investments. He added that although geopolitical concerns have eased, the fragile nature of the US–Iran peace deal continues to weigh on sentiment, preventing any meaningful directional move.


“Sectoral performance was mixed but tilted to the downside, with IT emerging as the primary drag. Investors are closely monitoring the upcoming US employment data and commentary from the new Fed Chair for cues on the interest rate trajectory, as inflation remains above target while economic activity continues to expand at a healthy pace. On the domestic front, the current monsoon trend—pointing to a worst deficit in a decade—raises concerns about agricultural output and allied sectors, further impacting sentiment amid expectations of weak Q1FY27 earnings. However, stability in crude oil prices and the Indian rupee, along with a recent moderation in FII outflows, are expected to provide near-term support to the market, with largecaps likely to outperform,” according to the analyst.

US stocks
Wall Street's main indexes were on course to close June with their strongest quarterly gains in years, highlighting the resilience of equities despite geopolitical challenges.

The S&P 500 and the Nasdaq Composite indexes were set for their best quarter in six years, while the blue-chip Dow was on track ‌for its biggest ⁠quarterly gain since ⁠2022.

Some analysts are pinning their hopes on ⁠the upcoming earnings season to boost stocks, especially after last week's punishing selloff in semiconductors and tech shares.

European markets
Europe's STOXX ⁠600, which does ‌not have nearly as many AI beneficiaries as many Asian or U.S. indexes, was up 1.1%, heading for a quarterly gain of 10%, having risen every month since March.

Tech view
The Nifty oscillated within the 23,850–24,050 range during the session as the NSE F&O monthly expiry took place, said Rupak De, Senior Technical Analyst at LKP Securities. “Sentiment remained slightly negative, although the index found support at the 50EMA on the daily timeframe. However, the daily RSI has entered a bearish crossover, indicating weakening momentum,” he said.

“Overall, the setup appears mixed, with significant Call and Put writing at the 24,000 strike, suggesting that this level is likely to act as a crucial pivot. Going forward, the new series may begin with the Nifty hovering around the 24,000 mark. Any meaningful move away from this level could provide clues about the index's next directional trend. If the Nifty breaks decisively below 23,800, it may witness a meaningful correction. However, if it manages to hold above 23,800, a decent recovery could unfold in the near term,” the analyst added.

Most active stocks in terms of turnover
HDFC Bank (Rs 3,656 crore), ICICI Bank (Rs 2,535 crore), Infosys (Rs 2,430 crore), Maruti Suzuki (Rs 2,114 crore), Reliance Industries (Rs 2,033 crore), Ola Electric Mobility (Rs 1,981 crore) and Eicher Motors (Rs 1,756 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: 48.65 crore), Ola Electric Mobility (Traded shares: 45.38 crore), Yes Bank (Traded shares: 16.03 crore), Suzlon Energy (Traded shares: 12.10 crore), Sammaan Capital (Traded shares: 6.72 crore), Groww (Traded shares: 5.05 crore) and JP Power (4.74 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest
Ola Electric Mobility, Cochin Shipyard, Transformers And Rectifiers (India), Balrampur Chini, Ather Energy, Maruti Suzuki and Gland Pharma 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 Ather Energy, Gland Pharma, Capri Global, ITD Cementation, Minda Corp., Ipca Labs and Nykaa

Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Schneider, KPIT Tech, Eicher Motors, WABCO India, Tata Technologies, R R Kabel and Birlasoft.

52-week low
Among the ones that hit their 52-week lows on NSE included Birlasoft, LTIMindtree, Tata Elxsi, Infosys, TCS, Wipro and HCL Tech.

Sentiment meter favours bulls
Out of the 3,411 stocks that traded on the NSE on June 30, Tuesday, 1,919 stocks witnessed advances, 1,383 saw declines while 109 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)