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

Indian headline indices ended Tuesday on a weak note dragged by banking and financial stocks even. HDFC Bank and ICICI bank were major spoilers. While Nifty declined 221.75 points or 0.4% to close at 24,487.40, the 30-stock S&P BSE Sensex finished at 80,235.59, falling by 368.49 points or 0.46%.

Here’s how analysts read the market pulse:

Commenting on the day’s action, Rupak De, Senior Technical Analyst at LKP Securities attributed the selling pressure in Nifty to tariffs and geopolitical issues as the index slipped from the day’s high of 24,700.

“In the short term, the index is likely to remain volatile with no clear directional bias. On the downside, immediate support is placed at 24,450; a break below this level could drag it towards 24,337 or lower. On the upside, immediate resistance is seen at 24,660–24,700, and a sustained move above this zone could push it towards 24,850 or even 25,000,” De said.

US markets

Wall Street traded in the green on Tuesday in the early trade after largely in-line consumer prices data.
The government data showed the Consumer Price Index (CPI) rose 0.2% on a monthly basis in July, versus the 0.2% increase forecast by economists polled by Reuters.

Annually, it stood at 2.7%, compared with an estimated 2.8% rise. The development kept bets of a Federal Reserve interest rate cut in September intact.

European Markets

Most major European indices were trading positive around this time. UK’s FTSE 100 index was marginally up at 0.09% while French CAC 40 was 0.5% higher. Spanish index IBEX 35 and Stoxx 600 were trading flat though the bias was positive. Meanwhile Germany’s DAX was 0.3% lower.

Tech View

Market expert Hrishikesh Yedve, AVP Technical and Derivative Research at Asit C. Mehta Investment Interrmediates said that the Nifty trade appears non-directional as was reflected in a see-saw trade that was laden with volatilityDecoding Nifty on the daily chart, Yedve said that the 50-stock index has formed an inverted hammer candle, indicating selling pressure at higher levels and difficulty sustaining above the 100-DEMA hurdle at 24,590. “A sustained move above 24,590 could extend the pullback rally towards 24,850, where the 34-DEMA hurdle is located. On the downside, last week’s low around 24,340 will act as immediate support for Nifty,” he said.

Most active stocks in terms of turnover

National Securities Depositories Limited (NSDL, Rs 2,538 crore), Sonata Software (Rs 132 crore), Tata Motors (Rs 118 crore), HBL Engine (Rs 111 crore), Infosys (Rs 101 crore), Suzlon Energy (Rs 91 crore) and Reliance Industries (RIL, Rs 88 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

Vodafone Idea (Traded shares: 3 crore), NSDL (Traded shares: 1.95 crore), Suzlon (Traded shares: 1.43 crore), SpiceJet (Traded shares: 96.75 lakh), EaseMyTrip (Traded shares: 74.17 crore), Yes Bank (Traded shares: 52.90 lakh) and SJVN (Traded shares: 38.46 lakh) were among the most actively traded stocks in volume terms on BSE.

Stocks showing buying interest

Shares of Sonata Software, Alkem Laboratories, SJVN, Jindal Stainless, Himadri Speciality Chemicals, DB Realty, PCBL and Maharashtra Seamless were among the stocks that witnessed strong buying interest from market participants.

52 Week high

Over 114 stocks hit their 52 week highs today while 105 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included AB Infrabuild, Cartrade Tech, Star Cement, Stellant Securities (India) and Vega Jewellers.

Stocks seeing selling pressure

Among the large cap names were Bajaj Finance and Trent. Other stocks which witnessed significant selling pressure were Astral, Praj Industries, Ace, Syrma, Bata India, KNR Construction, RVNL and DOMS Industries.

Sentiment meter favours bears

Action in heavyweights like HDFC Bank, ICICI Bank and Bajaj Finance lifted the markets the most, ensuring a positive closing. Out of the 4,204 stocks that traded on the BSE on Tuesday, 2,022 stocks witnessed advances, 2,033 saw declines while 149 stocks remained unchanged.

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