Ahead of Market: 10 things that will decide stock market action on Wednesday
Indian equities declined as rising crude prices and a weaker rupee weighed on sentiment. Sensex fell 388 points and Nifty 112 points, while analysts flagged 24,400 as key support amid geopolitical risks and upcoming inflation data.
By Debaroti Adhikary, ETMarkets.com |
ETMarkets.com
The Indian stock market slipped into deep red on Tuesday, with Sensex and Nifty falling half a percent each as rising oil prices, falling rupee and other factors dampened investor sentiment.
Sensex dropped over 388 points to close at 78,154 while Nifty 50 dropped over 112 points to end the session at 24,472. Broader markets were mixed, with Nifty Midcap 100 in the red and Nifty Smallcap 100 in the green.
Here's how analysts read the market pulse
A sharp rebound in crude prices shifted market attention back to inflation risks, tempering investor enthusiasm despite a supportive earnings backdrop, said Vinod Nair, Head of Research at Geojit Investments. He noted that the concerns over the disruptions in the Strait of Hormuz and the US-Iran negotiations kept sentiment guarded, particularly ahead of key inflation prints in India and the US.
“The resulting risk-off sentiment weighed on sectors most vulnerable to higher energy costs, while pharma and select IT names emerged as relative gainers. Nevertheless, robust foreign inflows and encouraging corporate earnings are limiting the downside risk,” according to the analyst.
US stocks
The S&P 500 and Nasdaq slipped in choppy trading on Tuesday, weighed down by heavyweight tech stocks, as investors assessed a report suggesting the United States and Iran were close to "some sort of an arrangement".
Pakistani defence minister Khawaja Asif told Bloomberg News that signals from recent days indicated a peace agreement was close, right after Qatar's foreign ministry said Iran-Oman talks on shipping in the Strait of Hormuz were in an advanced stage.
Brent crude futures turned lower after reaching their highest level in over a week. Rising energy costs have spurred inflation concerns and complicated the paths of central banks globally.
European markets
Europe's STOXX 600 pared earlier losses to inch up 0.1% on the day, while MSCI's All-World index was unchanged.
Tech view
Nifty 50 slipped below the recent consolidation range on the hourly chart, suggesting waning bullish momentum, said Rupak De, Senior Technical Analyst at LKP Securities. Besides, the index has fallen below critical near-term moving averages, indicating some weakness in the short-term trend, he noted.
“However, on the lower end, 24,400 remains an immediate support, and any decline is likely to find buying interest around this level. On the higher end, resistance is placed at 24,600–24,650. The sentiment is likely to remain positive as long as the index sustains above 24,400. However, the sentiment might weaken upon a decisive fall below 24,400,” according to the analyst.
Most active stocks in terms of turnover
Gland Pharma (Rs 2,538 crore), Chennai Petro (Rs 2,385 crore), HDFC Bank (Rs 2,125 crore), LIC (Rs 2,017 crore), BSE (Rs 1,963 crore), ICICI Bank (Rs 1,488 crore) and Paytm (Rs 1,355 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: 66.21 crore), MRPL (Traded shares: 5.75 crore), Pine Labs (Traded shares: 5 crore), LIC (Traded shares: 4.98 crore), Suzlon Energy (Traded shares: 3.59 crore), Ola Electric (Traded shares: 3.57 crore), and Yes Bank (Traded shares: 3 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Chennai Petro, Finolex Cables, MRPL, Gland Pharma, AmaraRaja Batteries, Sapphire Foods and Devyani International 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 Chennai Petro, Finolex Cables, Gland Pharma, Cadila Healthcare, Anthem Biosciences, Ather Energy and Bosch.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Triveni Turbine, KEC International, Balrampur Chini, Aditya Birla Retail, Action Construction Equipment, Castrol India and Godrej Properties.
52-week low
Among the ones which hit their 52-week lows on NSE included KEC International, HDFC Bank, Afcons Infrastructure and Inox Wind.
Sentiment meter favours bears
Out of the 3,478 stocks that traded on the NSE on August 11, Tuesday, 1,487 stocks witnessed advances, 1,867 saw declines while 124 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)
Sensex dropped over 388 points to close at 78,154 while Nifty 50 dropped over 112 points to end the session at 24,472. Broader markets were mixed, with Nifty Midcap 100 in the red and Nifty Smallcap 100 in the green.
Here's how analysts read the market pulse
A sharp rebound in crude prices shifted market attention back to inflation risks, tempering investor enthusiasm despite a supportive earnings backdrop, said Vinod Nair, Head of Research at Geojit Investments. He noted that the concerns over the disruptions in the Strait of Hormuz and the US-Iran negotiations kept sentiment guarded, particularly ahead of key inflation prints in India and the US.
“The resulting risk-off sentiment weighed on sectors most vulnerable to higher energy costs, while pharma and select IT names emerged as relative gainers. Nevertheless, robust foreign inflows and encouraging corporate earnings are limiting the downside risk,” according to the analyst.
US stocks
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The S&P 500 and Nasdaq slipped in choppy trading on Tuesday, weighed down by heavyweight tech stocks, as investors assessed a report suggesting the United States and Iran were close to "some sort of an arrangement".
Pakistani defence minister Khawaja Asif told Bloomberg News that signals from recent days indicated a peace agreement was close, right after Qatar's foreign ministry said Iran-Oman talks on shipping in the Strait of Hormuz were in an advanced stage.
Brent crude futures turned lower after reaching their highest level in over a week. Rising energy costs have spurred inflation concerns and complicated the paths of central banks globally.
European markets
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Europe's STOXX 600 pared earlier losses to inch up 0.1% on the day, while MSCI's All-World index was unchanged.
Tech view
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Nifty 50 slipped below the recent consolidation range on the hourly chart, suggesting waning bullish momentum, said Rupak De, Senior Technical Analyst at LKP Securities. Besides, the index has fallen below critical near-term moving averages, indicating some weakness in the short-term trend, he noted.
“However, on the lower end, 24,400 remains an immediate support, and any decline is likely to find buying interest around this level. On the higher end, resistance is placed at 24,600–24,650. The sentiment is likely to remain positive as long as the index sustains above 24,400. However, the sentiment might weaken upon a decisive fall below 24,400,” according to the analyst.
Most active stocks in terms of turnover
Gland Pharma (Rs 2,538 crore), Chennai Petro (Rs 2,385 crore), HDFC Bank (Rs 2,125 crore), LIC (Rs 2,017 crore), BSE (Rs 1,963 crore), ICICI Bank (Rs 1,488 crore) and Paytm (Rs 1,355 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: 66.21 crore), MRPL (Traded shares: 5.75 crore), Pine Labs (Traded shares: 5 crore), LIC (Traded shares: 4.98 crore), Suzlon Energy (Traded shares: 3.59 crore), Ola Electric (Traded shares: 3.57 crore), and Yes Bank (Traded shares: 3 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Chennai Petro, Finolex Cables, MRPL, Gland Pharma, AmaraRaja Batteries, Sapphire Foods and Devyani International 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 Chennai Petro, Finolex Cables, Gland Pharma, Cadila Healthcare, Anthem Biosciences, Ather Energy and Bosch.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Triveni Turbine, KEC International, Balrampur Chini, Aditya Birla Retail, Action Construction Equipment, Castrol India and Godrej Properties.
52-week low
Among the ones which hit their 52-week lows on NSE included KEC International, HDFC Bank, Afcons Infrastructure and Inox Wind.
Sentiment meter favours bears
Out of the 3,478 stocks that traded on the NSE on August 11, Tuesday, 1,487 stocks witnessed advances, 1,867 saw declines while 124 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)
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