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

The Indian market ended lower on Tuesday, with the Sensex and Nifty retreating from record-adjacent levels as heavyweight stocks HDFC Bank and Reliance Industries weighed on benchmarks and investors booked profits after a recent rally.

The BSE Sensex fell 376.28 points, or 0.44%, to close at 85,063.34, while the NSE Nifty 50 declined 71.6 points, or 0.27%, finishing the session at 26,178.70.

Here’s how analysts read the market pulse:

Domestic equities experienced a correction led by large-cap stocks, with selling in heavyweights like Reliance Industries and HDFC, said Vinod Nair, Head of Research at Geojit Investments, adding that the market reaction was influenced by uncertainties surrounding Venezuela-US crisis and Russian oil imports, coupled with anticipations regarding the upcoming Q3 results.

“While most sectors saw profit booking, Pharma, Banking, and IT stood well. Banking stocks found support from positive pre-result business updates. Pharma stocks advanced due to the consistent growth reported by the Indian Pharmaceutical Market (IPM) for December. In the near term, market is expected to remain range-bound with mixed optimism regarding the US-India deal uncertainty and Q3 earnings with high expectations,” said Nair.

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US markets

Wall Street stocks edged higher early Tuesday as markets digested presentations from Nvidia and other tech players at a major technology industry show and awaited key US economic data.

Shares of Nvidia rose 1.2 percent after the company’s CEO Jensen Huang unveiled new chip technology to advance artificial intelligence at the Consumer Electronics Show in Las Vegas.

European Markets

Stock markets rose in European trading on Tuesday as traders ‍focused on key market data later this week and showed limited reaction to the U.S. capture of Venezuelan President Nicolas Maduro.
Europe’s STOXX 600 closed at ⁠an all-time high on Monday. The risk-on mood continued during Asian trading on Tuesday, and European stocks opened higher.
Toppled Venezuelan President Nicolas Maduro pleaded not guilty on Monday to ‌narcotics charges, after the ‌United States seized him and took him to New York at the weekend.

Markets remained positive on Tuesday, with the STOXX 600 up roughly 0.2%, ‌having touched a new all-time high earlier in the session. The MSCI World Equity Index was up 0.3%, while London’s FTSE 100 was up 0.7%, helped by gains in oil and defence stocks.

Tech View

The Nifty has slipped as weakness continues to prevail after the formation of a new lifetime high yesterday, said Rupak De, Senior Technical Analyst at LKP Securities, adding that on the lower end, it found intraday support around 26100. The trend looks likely to remain range-bound in the near term.

“Going forward, a sustained rally may emerge upon a maneuvering effort by bulls to take the Nifty above 26300. On the downside, support is placed at 26000,” said De.

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Most active stocks in terms of turnover

RIL (Rs 4,157 crore), HDFC Bank (Rs 3,079 crore), Trent (Rs 2,508 crore), ITC (Rs 2,486 crore), ICICI Bank (Rs 2,424 crore), Hindustan Copper (Rs 2,179 crore) and Bharti Airtel (Rs 1,918 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

ITC (Traded shares: 69.95 crore), Ola Electric Mobility (Traded shares: 29.89 crore), YES Bank (Traded shares: 12.12 crore), Indian Energy Exchange (Traded shares: 8 crore), ITC (Traded shares: 7.25 crore), NALCO (Traded shares: 4.17 crore) and Hindustan Copper (Traded shares: 3.83 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of Indian Energy Exchange, Crisil, NALCO, NAVA, Divi’s Laboratories, Ipca Labs and Apollo Hospital were among the stocks that witnessed strong buying interest from market participants.

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52 Week high

Over 143 stocks hit their 52-week highs today while 125 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Tata Steel and Titan.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Trent, Kaynes Technology, Swiggy, Saregama India, RIL, Cummins India and Mahanagar Gas.

Sentiment meter bearish

The market sentiments were bearish. Out of the 4,349 stocks that traded on the BSE on Tuesday, 2,606 stocks witnessed declines, 1,575 saw advances, while 168 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)