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

The Indian stock market snapped a four-day gaining streak as Sensex and Nifty closed in the red with muted losses on Tuesday as weak global cues and slightly higher oil prices outweighed stronger rupee and FII purchases.

Sensex fell more than 104 points to close at 78,181 while Nifty 50 declined around 32 points to end the volatile expiry day session at around 24,399 on Tuesday, wiping off all morning gains. Broader markets also lost steam and closed in the red, with Nifty Smallcap 100 falling 0.66% and Nifty Midcap 100 declining 0.37%.

Here's how analysts read the market pulse


Profit booking emerged in the latter half of the session as weakness across Asian markets and investor caution ahead of the US Fed minutes weighed on sentiment, said Vinod Nair, Head of Research at Geojit Investments. However, he noted that IT stocks continued to lend support, extending gains ahead of the June-quarter earnings season as the sector recovered from recent corrections.

“With concerns around the US–Iran conflict and trade tariffs easing, market focus is shifting towards Q1FY27 earnings and the progress of the monsoon. Meanwhile, improving FII inflows and a stable rupee are expected to provide near-term support to overall market sentiment,” according to the analyst.

US stocks

The S&P 500 slipped and the Nasdaq dropped sharply on Tuesday, weighed by losses in chip stocks amid doubts over the durability of the AI-led rally despite robust Samsung earnings, while a report on China's DeepSeek making an AI chip also hit sentiment.

Nvidia fell 1.8% ‌after Reuters reported Chinese startup ⁠DeepSeek is ⁠developing its own AI chip, a move that could reduce its dependence on Nvidia and Huawei chips.

Chip stocks tumbled across Wall Street and the Philadelphia SE Semiconductor index declined 5.5%, hitting a four-week low. Intel's shares sank 8.2%, while Micron fell 7.3%, making the companies among the top losers on the benchmark S&P 500.

European markets

European stocks took a step backwards despite Samsung Electronics forecasting a 19-fold jump in April-June operating profit to 89.4 trillion won ($58.4 billion), a third straight quarter of record operating profit for ‌the world's largest ⁠memory-chipmaker.

The STOXX 600 slipped 0.16%, as losses in semiconductor and tech stocks offset gains in oil and gas shares. Energy stocks got a lift from crude prices gaining on the back of signs that U.S.-Iran peace talks were losing momentum.

Tech view

On Tuesday, the benchmark index Nifty opened the session on a positive note and extended its gains during the first half of the day, primarily supported by strength in the IT sector. However, the index failed to sustain above the 24,500 mark, which triggered sharp profit booking in the latter half of the session, SBI Securities said, adding that as a result, Nifty pared its intraday gains and settled near the 24,400 level, ending the day with a marginal loss of 0.13%.

“On the daily chart, Nifty formed a small-bodied candle with shadows on both sides, indicating indecisiveness at the current market juncture. Despite the day's weakness, the index continues to trade above its 20-day, 50-day, and 100-day EMAs, reflecting an overall positive trend. Additionally, the daily RSI remains in bullish territory,” it added.

“Going ahead, the 24530–24550 zone is expected to act as an immediate resistance area for Nifty. A decisive breakout and sustained move above 24550 could trigger fresh buying interest, paving the way for a sharp upside rally towards 24700, followed by 24850 in the short term. On the downside, the 24300–24280 zone remains a crucial support area for the index. As long as Nifty holds above this support band, the broader bullish undertone is likely to remain intact,” according to the domestic brokerage.

Most active stocks in terms of turnover

HDFC Bank (Rs 4,805 crore), Trent (Rs 2,704 crore), RITES (Rs 2,384 crore), ICICI Bank (Rs 2,226 crore), BSE (Rs 2,088 crore), Infosys (Rs 2,028 crore) and Reliance Industries (Rs 1,884 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: 38.25 crore), RITES (Traded shares: 10.07 crore), Ola Electric Mobility (Traded shares: 7.98 crore), Yes Bank (Traded shares: 6.2 crore), HDFC Bank (Traded shares: 5.76 crore), Suzlon Energy (Traded shares: 5.7 crore) and Physicswallah (Traded shares: 5.67 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Info Edge, Physicswallah, RITES, Swiggy, Natco Pharma, Latent View Analytics and Aegis Vopak Terminal 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 Gland Pharma, Titan Company, Adani Transmission, GMR Infra, J B Chemicals, IndusInd Bank and Granules India.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Trent, Kalyan Jewellers, Emmvee Photovoltaic, Himadri Speciality, Saregama India, Data Patterns (India) and R R Kabel.

Sentiment meter favours bears

Out of the 3,384 stocks that traded on the NSE on July 7, Tuesday, 1,191 stocks witnessed advances, 2,084 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)