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

The Indian market ended higher on Monday, with the Sensex and Nifty snapping a six-day winning streak, as investors locked in gains after benchmarks hovered near record highs. The pause followed a rally fuelled by optimism over easing global trade tensions and expectations of a rebound in corporate earnings.

The S&P BSE Sensex declined 0.67% to 84,778.84, adding 566.96 points, while the NSE Nifty 50 advanced 0.66% or 170.90 points to 25,966.05.

Here’s how analysts read the market pulse:

The domestic market witnessed a broad-based recovery owing to progress in the US-China trade talks, said Vinod Nair, Head of Research at Geojit Investments, adding gold prices declined as demand for safe-haven assets waned.

“Softer-than-expected US CPI data renewed expectations of a FED rate cut this week, boosting investor confidence. Easing global headwinds, coupled with strong domestic reforms, provided cues for domestic earnings growth and justified the current premium valuations,” said Nair.

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US marketsWall Street’s main indexes notched record highs on Monday as expectations of a U.S.-China trade deal fueled risk-taking at the start of a week dominated by Big Tech earnings and a likely Federal Reserve rate cut.

U.S. President Donald Trump and China’s Xi Jinping are set to meet on Thursday to decide on the framework for a deal to pause steeper American tariffs and Chinese rare earths export controls.Wall Street’s fear gauge, the VIX, hit a one-month low. Earlier this month, Trump’s revival of the trade war had sent the volatility index to its highest level since the April rollout of his “Liberation Day” tariffs.

European MarketsEuropean shares hit an intraday record high on Monday as signs of easing trade tensions between the United States and China boosted risk appetite.

MSCI’s gauge of stocks across the globe rose 8.90 points, or 0.89%, to 1,010.27 and was on pace for its third straight session of gains, while the pan-European STOXX 600 index rose 0.23%.

Tech View

The Nifty started on a strong note and remained mostly sideways throughout the day ahead of the NSE F&O expiry, said Rupak De, Senior Technical Analyst at LKP Securities, adding that sentiment continues to remain strong as the index sustains above the breakout point.

“The current setup looks favorable for a further rally in the index, with dips likely to be bought into. On the lower end, support is placed at 25,700, below which weakness might emerge. On the higher end, resistance is seen at 26,000; a decisive move or close above this level could trigger a rally towards 26,500 in the short term,” said De.

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Most active stocks in terms of turnover

Vodafone Idea (Rs 2,147 crore), RIL (Rs 2,089 crore), ICICI Bank (Rs 1,455 crore), HDFC Bank (Rs 1,576 crore), Chennai Petro (Rs 1,266 crore), Coforge (Rs 1,266 crore) and Bharti Airtel (Rs 1,205 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: 214.06 crore), YES Bank (Traded shares: 8.12 crore), Adani Power (Traded shares: 5.16 crore), Sagility India (Traded shares: 3.94 crore), IRB Infrastructure Developers (Traded shares: 3.20 crore), Canara Bank (Traded shares: 3.04 crore) and Eternal (Traded shares: 2.77 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of Firstsource, eClerx Services, R R Kabel, HBL Power, Vodafone Idea, Netweb Technologies and Intellect Design were among the stocks that witnessed strong buying interest from market participants.

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52 Week highOver 193 stocks hit their 52 week highs today while 95 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Tata Steel, SBI and Bharti Airtel.

Stocks seeing selling pressureStocks which witnessed significant selling pressure were Kotak Mahindra Bank, Infosys, Adani Ports SEZ, Bajaj Finance, Mahindra & Mahindra, Sun Pharma and HUL.

Sentiment meter neutral

The market sentiments were neutral. Out of the 4,502 stocks that traded on the BSE on Monday, 2,198 stocks witnessed declines, 2,099 saw advances, while 205 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)