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

The Indian market snapped a four-day losing streak on Tuesday, ending higher as a softer-than-expected domestic inflation print buoyed market sentiment. Gains were seen across most sectors, although a weak margin outlook from HCL Tech tempered the overall advance.

The Sensex rose 317.45 points, or 0.39%, to close at 82,570.91, while the Nifty 50 gained 113.50 points, or 0.45%, to settle at 25,195.80. The rebound follows a sharp pullback over the previous four sessions, during which both indices had shed nearly 1.7%.

Here’s how analysts read the market pulse:

Market sentiment is showing signs of improvement, supported by a blend of global and domestic developments and optimism is growing around the possibility of an interim trade agreement with the U.S., which could lead to a moderation in tariff-related risks, said Vinod Nair, Head of Research, Geojit Investments.

“Concurrently, domestic inflation has fallen to multi-year lows, strengthening expectations of a further rate cut by the RBI—potentially accelerating future economic growth, which is currently showing signs of improvement,” said Nair.

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US markets

The Nasdaq cruised to a fresh record high on Tuesday, powered by a jump in Nvidia, while the S&P 500 hovered below its peak, as investors digested an inflation report and a flurry of major bank earnings.U.S. consumer prices posted their biggest jump in five months in June, hinting that tariffs may be starting to heat up inflation. Still, underlying inflation stayed moderate, offering some reassurance despite the headline spike.The core figure, which excludes volatile food and energy components, rose 0.2% on a monthly basis and 2.9% from a year earlier, but the gains were below estimates.

The Nasdaq was boosted by AI-chip leader Nvidia, which rose 4.4% after unveiling plans to resume sales of its H20 AI chip to China.

Other chipmakers also advanced, with Advanced Micro Devices and Super Micro Computer rising more than 6% each.

The technology sector rose 1.7% to hit a record high.

European Markets

European shares nudged higher on Tuesday, as investor sentiment improved after U.S. President Donald Trump signalled a readiness to negotiate tariffs with the European Union, while the spotlight turns to corporate earnings.

The pan-European STOXX 600 index gained 0.3% to 548.73 points. Among other regional indexes, Germany’s DAX gained 0.4%, France’s CAC 40 rose 0.3%, while Spain’s IBEX lost 0.2% and the UK’s FTSE 100 was flat.

Tech View

The Nifty recovered during the day as the index found support around 25,000 in the previous trading session, said Rupak De, Senior Technical Analyst at LKP Securities, adding that on the higher end, however, the index faced initial resistance at the 21-EMA, which is placed around 25,250.

“A decisive move above 25,260 in the coming sessions could lead to a rally towards 25,400 and beyond. On the other hand, a failure to sustain above 25,260 might weaken the bulls’ grip on the market. In that case, the Nifty may decline towards the support zone of 25,000 and 24,920–24,900,” said De.

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Most active stocks in terms of turnover

HCL Tech (Rs 2,310 crore), Ola Electric Mobility (Rs 1,943 crore), Swan Energy (Rs 1,510 crore), HDFC Bank (Rs 1,445 crore), BSE (Rs 1,436 crore), JP Power (Rs 1,217 crore) and RIL (Rs 1,210 crore) were among the most active stocks on BSE in value terms. Higher activity in a counter in value terms can help identify the counters with highest trading turnovers in the day.

Most active stocks in volume terms

JP Power (Traded shares: 47.74 crore), Ola Electric Mobility (Traded shares: 41.89 crore), Vodafone Idea (Traded shares: 34.27 crore), YES Bank (Traded shares: 15.50 crore), Suzlon Energy (Traded shares: 6.81 crore), Eternal (Traded shares: 3.50 crore) and NMDC (Traded shares: 3.41 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of Swan Energy, FACT, Sobha, Anant Raj, Authum Investment, Neuland Labs and Hero MotoCorp were among the stocks that witnessed strong buying interest from market participants.

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52 Week high

Over 150 stocks hit their 52 week highs today while 36 stocks slipped to their 52-week lows.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were JP Power, Inox Wind, Tejas Networks, Ola Electric Mobility, Five-Star Business Finance, Premier Energies and HCL Tech.

Sentiment meter bullish

The market sentiments were bullish. Out of the 4,215 stocks that traded on the BSE on Tuesday, 1,558 stocks witnessed declines, 2,504 saw advances, while 153 stocks remained unchanged.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)