Ahead of Market: 10 things that will decide stock market action on Wednesday
Sensex and Nifty reversed morning losses to close higher on Tuesday, amid sharp volatility on the first expiry day after the closing auction session launch. Healthcare and financial stocks gained, while broader market breadth remained mixed and ca...
By Debaroti Adhikary, ETMarkets.com | Updated:
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The Indian stock market recorded gains on Tuesday, with Sensex and Nifty erasing all morning losses to sharply swing into the green as market witnessed strong volatility on first expiry day since the launch of closing auction session (CAS).
Sensex gained nearly 287 points to close at 77,656 while Nifty 50 gained 115 points to end the session at 24,334 on Tuesday. Broader markets remained mixed, with Nifty Smallcap 100 closing in the red and Nifty Midcap 100 in the green.
Here's how analysts read the market pulse
The much-anticipated US sanctions against Iran fell short of market expectations, causing crude oil prices and bond yields to moderate from their recent peaks, said Vinod Nair, Head of Research, Geojit Investments. He noted that this relief in energy costs aided a moderately positive close today on the monthly expiry day.
Outperforming the broader market, healthcare and financial sectors gained as investors rotated into defensive and domestic-oriented sectors with signs of some stability in the domestic bond market. Market participants are now awaiting upcoming inflation data and comments from the Fed Chair later this week for better clarity on the inflation and interest rate outlook, he said.
However, near-term cautiousness is expected to continue for Indian equities as unresolved US-Iran tensions keep oil prices and bond yields relatively elevated, leaving investors sensitive to sudden shifts in the Middle East geopolitical landscape, according to the analyst.
US stocks
Wall Street's main indexes rose on Tuesday, as technology stocks recovered from a selloff ahead of AI heavyweight Nvidia's results and an inflation report key to shaping interest rate expectations.
The gains could ease investor concerns sparked by a recent bond market rout that has lifted yields and pressured equities. They could also help set the tone before September, a historically weaker month for stocks.
Nvidia's results on Wednesday will be the next test for the earnings-driven rally. Any signs of slowing growth could reignite concerns over stretched valuations and how long the AI boom can sustain.
European shares
European shares rose on Tuesday as investors took comfort from a softer-than-feared U.S. sanctions package on Iran and falling oil prices, with gains in heavyweight industrials and healthcare stocks lifting the benchmark.
The pan-European STOXX 600 closed 0.35% higher at 656.48 points, just 0.6% away from its record high hit earlier this month.
The blue-chip FTSE 100 index rose 0.3% to 10,886.16 points, while the mid-cap FTSE 250 climbed 0.6% to 24,856.05 points.
Tech view
Nifty remained sideways to negative for most of the session until the last hour, when the index rose from the ashes and moved deep into positive territory, said Rupak De, Senior Technical Analyst at LKP Securities. He noted that a strong CAS closing added some more points to the positive finish.
“The index climbed back above the 20 EMA after a few days of underperformance. The RSI has entered a bullish crossover, indicating that momentum is improving. In the short term, the trend may remain strong, with the possibility of further upside. On the higher side, resistance is placed at 24,400/24,480. On the lower side, immediate support is placed at 24,240,” according to the analyst.
Most active stocks in terms of turnover
FACT (Rs 3,053 crore), Hindustan Copper (Rs 2,391 crore), Vodafone Idea (Rs 2,286 crore), Paytm (Rs 1,696 crore), SAIL (Rs 1,271 crore), HDFC Bank (Rs 1,270 crore), and ICICI Bank (Rs 1,134 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: 153.45 crore), SAIL (Traded shares: 6.89 crore), Yes Bank (Traded shares: 6.43 crore), Groww (Traded shares: 5.32 crore), Paradeep Phosphates (Traded shares: 5.15 crore), IFCI (Traded shares: 4.94 crore), and Suzlon Energy (Traded shares: 4.72 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
FACT, Vodafone Idea, Cyient, Paradeep Phosphates, Paytm, Angel One and IREDA 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 Paytm, Divis Labs, AU Small Finance Bank, Bajaj Auto, IPCA Labs, PVR Inox and HFCL.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Hind Copper, IIFL Finance, Data Patterns, Balrampur Chini, Redington, Netweb Technologies and Ola Electric Mobility.
52-week low
Among the ones which hit their 52-week lows on NSE included RVNL, Groww, Dabur India, IRB Infra Dev., IRCTC, Sun TV and PI Industries.
Sentiment meter favours bears
Out of the 3,637 stocks that traded on the NSE on August 25, Tuesday, 1,672 stocks witnessed advances, 1,842 saw declines while 123 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 gained nearly 287 points to close at 77,656 while Nifty 50 gained 115 points to end the session at 24,334 on Tuesday. Broader markets remained mixed, with Nifty Smallcap 100 closing in the red and Nifty Midcap 100 in the green.
Here's how analysts read the market pulse
The much-anticipated US sanctions against Iran fell short of market expectations, causing crude oil prices and bond yields to moderate from their recent peaks, said Vinod Nair, Head of Research, Geojit Investments. He noted that this relief in energy costs aided a moderately positive close today on the monthly expiry day.
Outperforming the broader market, healthcare and financial sectors gained as investors rotated into defensive and domestic-oriented sectors with signs of some stability in the domestic bond market. Market participants are now awaiting upcoming inflation data and comments from the Fed Chair later this week for better clarity on the inflation and interest rate outlook, he said.
However, near-term cautiousness is expected to continue for Indian equities as unresolved US-Iran tensions keep oil prices and bond yields relatively elevated, leaving investors sensitive to sudden shifts in the Middle East geopolitical landscape, according to the analyst.
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US stocks
Wall Street's main indexes rose on Tuesday, as technology stocks recovered from a selloff ahead of AI heavyweight Nvidia's results and an inflation report key to shaping interest rate expectations.
The gains could ease investor concerns sparked by a recent bond market rout that has lifted yields and pressured equities. They could also help set the tone before September, a historically weaker month for stocks.
Nvidia's results on Wednesday will be the next test for the earnings-driven rally. Any signs of slowing growth could reignite concerns over stretched valuations and how long the AI boom can sustain.
ADVERTISEMENT
European shares
European shares rose on Tuesday as investors took comfort from a softer-than-feared U.S. sanctions package on Iran and falling oil prices, with gains in heavyweight industrials and healthcare stocks lifting the benchmark.
ADVERTISEMENT
The pan-European STOXX 600 closed 0.35% higher at 656.48 points, just 0.6% away from its record high hit earlier this month.
The blue-chip FTSE 100 index rose 0.3% to 10,886.16 points, while the mid-cap FTSE 250 climbed 0.6% to 24,856.05 points.
Tech view
Nifty remained sideways to negative for most of the session until the last hour, when the index rose from the ashes and moved deep into positive territory, said Rupak De, Senior Technical Analyst at LKP Securities. He noted that a strong CAS closing added some more points to the positive finish.
“The index climbed back above the 20 EMA after a few days of underperformance. The RSI has entered a bullish crossover, indicating that momentum is improving. In the short term, the trend may remain strong, with the possibility of further upside. On the higher side, resistance is placed at 24,400/24,480. On the lower side, immediate support is placed at 24,240,” according to the analyst.
Most active stocks in terms of turnover
FACT (Rs 3,053 crore), Hindustan Copper (Rs 2,391 crore), Vodafone Idea (Rs 2,286 crore), Paytm (Rs 1,696 crore), SAIL (Rs 1,271 crore), HDFC Bank (Rs 1,270 crore), and ICICI Bank (Rs 1,134 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: 153.45 crore), SAIL (Traded shares: 6.89 crore), Yes Bank (Traded shares: 6.43 crore), Groww (Traded shares: 5.32 crore), Paradeep Phosphates (Traded shares: 5.15 crore), IFCI (Traded shares: 4.94 crore), and Suzlon Energy (Traded shares: 4.72 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
FACT, Vodafone Idea, Cyient, Paradeep Phosphates, Paytm, Angel One and IREDA 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 Paytm, Divis Labs, AU Small Finance Bank, Bajaj Auto, IPCA Labs, PVR Inox and HFCL.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Hind Copper, IIFL Finance, Data Patterns, Balrampur Chini, Redington, Netweb Technologies and Ola Electric Mobility.
52-week low
Among the ones which hit their 52-week lows on NSE included RVNL, Groww, Dabur India, IRB Infra Dev., IRCTC, Sun TV and PI Industries.
Sentiment meter favours bears
Out of the 3,637 stocks that traded on the NSE on August 25, Tuesday, 1,672 stocks witnessed advances, 1,842 saw declines while 123 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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