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

The Indian stock market crashed on Monday, with Sensex and Nifty sliding more than 1% each as strong selling in heavyweight private banks along with other factors spooked investors.

Sensex dropped nearly 900 points to close at 73,853 while Nifty 50 fell over 250 points to end the session below the 22,900 level. The selloff wiped nearly Rs 5 lakh crore off the combined market value of BSE-listed companies, taking it below Rs 468 lakh crore.

Also read | Why did market crash today?


Here's how analysts read the market pulse

“Indian equities came under renewed selling pressure, reversing the recent recovery as weak global cues and selling in private banks and IT stocks weighed on investor sentiment. Global markets remained cautious ahead of a busy week of corporate earnings. Private banks remained under pressure following quarterly earnings and concerns over margin trends, while PSU banks bucked the broader weakness, supported by expectations of relatively resilient margins and asset quality. Crude oil prices eased after the US waived key sanctions linked to Russia, raising expectations of increased Russian fuel supplies to the global market. However, crude prices remained elevated, with geopolitical tensions continuing to influence the outlook. The Nifty slipped below the psychologically important 23,000 level, while broader market breadth remained weak, reflecting cautious investor sentiment amid earnings-related volatility and uncertain global cues,” said Vinod Nair, Head of Research, Geojit Investments Limited.

US stocks

Wall Street stocks were mostly lower early Tuesday on continued volatility in artificial intelligence shares as investors digested mixed earnings from industrial companies.
Following Monday's rally in tech shares, some leading AI shares were back in the red on Tuesday.

European markets

European shares fell as another rise in crude oil prices kept risk sentiment in check, while investors homed in on results from AI bellwether companies later this week.

The pan-European STOXX 600 slid 0.7% after dropping close to 1% on Monday, with European semiconductor companies including ASML and ASMI fallingalmost 3%.

The euro was trading flat against the dollar at $1.12, while yields on 10-yearFrench government bondsinched higher to 4.955% after their biggest one-day jump in about a month, as widespread protests underscored the difficulties the French government faces in reducing its large deficit.

Most active stocks in terms of turnover

ICICI Bank (Rs 3,497 crore), HDFC Bank (Rs 2,392 crore), TCS (Rs 2,143 crore), RIL (Rs 1,888 crore), Bharti Airtel (Rs 1,619 crore), Axis Bank (Rs 1,581 crore) and Infosys (Rs 1,508 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: 32.35 crore), Yes Bank (Traded shares: 20.68 crore), PNB (Traded shares: 7.81 crore), Suzlon Energy (Traded shares: 6.52 crore), Union Bank of India (Traded shares: 4.59 crore), JP Power (Traded shares: 4.55 crore) and HDFC Bank (Traded shares: 3.35 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Union Bank of India, HFCL, PNB, Karur Vyasa Bank, J&K Bank, Bank of Baroda and Bank of India 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 Karur Vysya Bank, Shyam Metalics, Laurus Labs and PVR Inox.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Urban Company, Himadri Speciality, Deepak Fertilisers, Finolex Cables, Ibull Housing Fin, Anupam Rasayan India and SJVN.

52-week low

Among the ones which hit their 52-week lows on NSE included Ibull Housing Fin, SJVN, Commercial Engg, Reliance Power, Yes Bank, Swan Energy and HUDCO.

Sentiment meter favours bears

Out of the 3,664 stocks that traded on the NSE on October 19, Monday, 846 stocks witnessed advances, 2,717 stocks saw declines while 101 stocks remained unchanged.

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Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimershere