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

The Indian stock market continued to post sharp gains on Tuesday, with Sensex and Nifty rising nearly 2% each as easing oil prices, growing buzz around a prospective LTCG tax rejig, and other factors boosted investor sentiment.

Sensex jumped 1,225 points to close at 76,918 while Nifty 50 rose 370 points to end the session at 23,811 on Tuesday. The sharp gains added nearly Rs 4 lakh crore to the total market capitalisation of all companies listed on BSE, pulling it up to nearly Rs 487 lakh crore.

Also read | Why did market rally today?


Here's how analysts read the market pulse

"Indian equities extended their recovery as a sharp decline in crude oil prices, declining U.S. Treasury yields and renewed FII interest eased recent macro pressures. Resilient Q2 earnings further strengthened confidence in the domestic growth outlook, while the return of foreign investors after prolonged selling provided a liquidity boost, driving broader participation led by financials and consumption-oriented sectors. Going forward, the durability of the recovery will hinge on broader earnings delivery, sustained FII inflows and continued moderation in oil prices and global yields, with geopolitical developments and the Fed’s policy trajectory remaining the key external triggers,” said Vinod Nair, Head of Research at Geojit Investments.

US stocks

The S&P 500 and the Nasdaq rose on Tuesday on a further drop in crude oil prices ahead of US midterm election results, while Apple joined the list of Big Tech companies whose earnings failed to impress investors.

Apple fell 2% after the iPhone maker warned the cost of memory chips would continue to rise, pressuring its holiday-quarter gross margin.

Chip stocks were among top gainers, with Nvidia climbing 2.7% after falling for the last four sessions.

The broader Philadelphia chips index jumped 2.7%, while AMD gained 4% ahead of its quarterly earnings due after the bell.

European markets

Stocks in Europe reversed course to trade higher on Tuesday as oil prices dropped after US President Donald Trump said Washington would stop $4 billion in funding to Israel after the end of this year.

The pan-European STOXX 600 index rose 0.13% to 650.3 points.

Brent crude futures fell 2.9% to $101.75 a barrel. Oil prices have whipsawed this week on conflicting signals from the US and Iran on ending the war in the Middle East.

Most active stocks in terms of turnover

Reliance Industries (Rs 5,485 crore), Bharti Airtel (Rs 3,810 crore), HDFC Bank (Rs 3,078 crore), SBI (Rs 2,759 crore), ICICI Bank (Rs 2,480 crore), BSE (Rs 2,192 crore), and MCX India (Rs 1,631 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.

Also read | 4 reasons why Reliance Industries shares can rally after Monday magic sparked historic 12% surge

Most active stocks in volume terms

Trident (Traded shares: 27.4 crore), Vodafone Idea (Traded shares: 24.7 crore), Yes Bank (Traded shares: 16.15 crore), JP Power (Traded shares: 7 crore), Suzlon Energy (Traded shares: 6.34 crore), Groww (Traded shares: 5.32 crore) and Ola Electric (Traded shares: 5.31 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

CarTrade Tech, Marico, Balrampur Chini, MCX India, Trident, Angel One and Aegis Logistics 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 MCX India, Welspun India, Bosch, Shyam Metalics, IHCL, Eternal and Divi’s Labs.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were KEC International, AIA Engineering, GE Shipping, NLC India, Biocon, Tata Investment Corp and NALCO.

52-week low

Among the ones which hit their 52-week lows on NSE included KEC International, Jain Resource Recycling, REC, PB Fintech, Zee Entertainment Enterprises, Escorts Kubota and DOMS Industries.

Sentiment meter favours bulls

Out of the 3,713 stocks that traded on the NSE on November 3, Tuesday, 2,127 stocks witnessed advances, 1,477 stocks saw declines while 109 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.