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

The Indian market ended higher on Monday, snapping a three-day losing run, as stronger-than-expected GDP data buoyed investor confidence, while investors also took some relief from a U.S. court ruling that deemed most of President Donald Trump’s tariffs illegal but kept them in place until mid-October.

The BSE Sensex advanced 554.84 points, or 0.70%, to finish at 80,364.49, while the NSE Nifty jumped 198.20 points, or 0.81%, to settle at 24,625.05.

Here’s how analysts read the market pulse:

India’s Q1 GDP growth of 7.8%, exceeding projections, has reinforced investor confidence in the economy’s resilience amid global uncertainties, said Vinod Nair, Head of Research at Geojit Investments, adding that expectations of GST rationalisation at the upcoming council meeting continue to bolster sentiment, supporting discretionary consumption.

“This optimism is particularly benefiting sectors such as Auto and Consumer Durables. However, the risk of a potential revenue shortfall from proposed GST slab adjustments has heightened concerns over increased government borrowing, pushing domestic bond yields higher,” said Nair.

Additionally, Nair said “the impact of recently imposed tariffs is expected to become more evident from Q2 onwards, with markets awaiting greater clarity on their wider economic implications, which will be pivotal in determining near-term market trends.”

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US Markets

US Markets were shut on Monday on account of Labor Day.

European Markets

European shares finished marginally higher on Monday, supported by defence stocks, while Novo Nordisk gained after data showed its weight-loss drug Wegovy delivers stronger heart-protective benefits than Eli Lilly’s rival therapies.

The pan-European STOXX 600 closed up 0.17% at 551.07, with gains led by the aerospace and defence index , which surged 2.1% to hover near a record high.

Defence giants, Rolls-Royce Holdings, Rheinmetall and Hensoldt advanced between 2.8% and 4.5%.

Gains followed a Financial Times report that European Commission President Ursula von der Leyen said Europe was preparing “pretty precise plans” to send troops to Ukraine as part of post-conflict security guarantees.

Tech View

The Nifty has witnessed a significant recovery from negativity as the Nifty reversed momentum following an inverted hammer pattern, said Rupak De, Senior Technical Analyst at LKP Securities, adding that on the hourly RSI, a hidden positive divergence is visible.

“However, sentiment remains “sell on rise” as long as the index stays below 24,850. Only a decisive move beyond 24,850 might induce a rally towards 25,250/25,500. On the lower end, support is placed at 24,500,” said De.

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Most active stocks in terms of turnover

Ola Electric Mobility (Rs 6,509 crore), HDFC Bank (Rs 1,918 crore), Eternal (Rs 1,525 crore), RIL (Rs 1,521 crore), Sun Pharma (Rs 1,467 crore), BSE (Rs 1,307 crore) and Mahindra & Mahindra (Rs 1,156 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

Ola Electric Mobility (Traded shares: 108.03 crore), Vodafone Idea (Traded shares: 44.99 crore), YES Bank (Traded shares: 7.84 crore), Suzlon Energy (Traded shares: 6.28 crore), Eternal (Traded shares: 4.78 crore), Aditya Birla Retail & Fashion (Traded shares: 3.84 crore) and JP Power (Traded shares: 3.13 crore) and were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of Ola Electric Mobility, Kaynes Technology, Aditya Birla Retail & Fashion, Gujarat Mineral Development, eClerx Services, Chennai Petro and Tube Investments were among the stocks that witnessed strong buying interest from market participants.

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52 Week high

Over 129 stocks hit their 52 week highs today while 113 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Maruti Suzuki and TVS Motor.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Waaree Energies, Godfrey Philips, Piramal Enterprises, United Breweries, Karur Vysya Bank, Sun Pharma and Metropolis Health.

Sentiment meter bullish

The market sentiments were bullish. Out of the 4,380 stocks that traded on the BSE on Monday, 1,391 stocks witnessed declines, 2,795 saw advances, while 194 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)