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

The Indian stock market erased all early losses, with Sensex and Nifty ending the session in the green on Monday to resume the explosive rally around Diwali following a minor drop during the Muhurat Trading session.

Sensex gained 107 points to close at 81,107 while Nifty 50 rose 58 points to end the session at 25,045 on Monday. Broader markets remained mixed, with Nifty Smallcap 250 index slipping into the red and Nifty Midcap 100 index rising 0.6%.

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Here's how analysts read the market pulse

Indian equities traded range-bound with a positive bias, as intermittent profit booking following the recent rally capped gains, said Vinod Nair, Head of Research, Geojit Investments. He noted that the weakness in IT and metal stocks also weighed on the benchmarks. Improving FII participation and better-than-expected corporate earnings have strengthened expectations of an upgrade to the FY27 earnings outlook, supporting market sentiment, he added.

While several key macro tailwinds appear to be increasingly priced in, valuation comfort, particularly in large caps, easing geopolitical concerns, moderation in crude oil prices from recent peaks, and prospects of a double-digit earnings recovery provide a constructive medium-term backdrop, Nair said, pointing out that investors are now awaiting India and US inflation data for fresh cues on the interest-rate trajectory, while crude oil prices and global risk sentiment remain key near-term monitorables.

US stocks

Wall Street's main indexes retreated on Tuesday, pausing a two-day rebound in tech shares, after a hotter-than-expected October inflation reading reinforced fears that the Federal Reserve could keep interest rates higher for longer.

Earlier in the day, Fed Governor Christopher Waller said the central bank should raise interest rates by at least 25 basis points next month even if inflation cooled in October. If price pressures accelerated, policymakers should consider a half-percentage-point increase, he said.

Traders are pricing in an almost 99% chance of a hike in December, according to the CME FedWatch tool.

European markets

The pan-European STOXX 600 was within 1% of its all-time high as lower oil prices helped ease some of the inflation concerns that have been on investors' radar since the US-Israeli war with Iran erupted at the end of February.

Most active stocks in terms of turnover

HDFC Bank (Rs 5,151 crore), ICICI Bank (Rs 4,344 crore), Divis Labs (Rs 2,991 crore), RIL (Rs 2,598 crore), SBI (Rs 2,497 crore), Sai Life Science (Rs 1,866 crore), and Data Patterns (Rs 1,450 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.

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Most active stocks in volume terms

Vodafone Idea (Traded shares: 22.76 crore), Yes Bank (Traded shares: 13.89 crore), HDFC Bank (Traded shares: 6.48 crore), IRB Infra Dev. (Traded shares: 5.36 crore), Suzlon Energy (Traded shares: 5.06 crore), Tata Steel (Traded shares: 4.99 crore) and PNB (Traded shares: 4.91 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Data Patterns (India), IREDA, GSK Pharma, Union Bank of India, Sansera Engineering, Gland Pharma and IRB Infra 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, Sai Life Science, Divis Labs, Laurus Labs, Mankind Pharma, Glenmark Pharma and Aurobindo Pharma.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were R R Kabel, TD Power System, Finolex Cables, Tata Teleservices, Sterlite Tech, Jubilant Food and eClerx Services.

52-week low

Among the ones which hit their 52-week lows on NSE included PI Industries and AIA Engineering.

Sentiment meter favours bulls

Out of the 3,698 stocks that traded on the NSE on November 9, Monday, 1,629 stocks witnessed advances, 1,959 stocks saw declines while 110 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.