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

The Indian market closed flat on Tuesday, with the Sensex and Nifty extending a losing run as thin year-end trading and lingering concerns over foreign fund outflows kept investors cautious and volumes subdued.

The BSE Sensex edged down 20 points, or 0.02%, to close at 84,675.08, while the NSE Nifty 50 slipped 3 points, or 0.01%, to finish at 25,938.85, just below the 26,000 mark.

Here’s how analysts read the market pulse:

The domestic market remained volatile and ended the monthly expiry day flat, despite supportive global cues and selective value buying, said Vinod Nair, Head of Research at Geojit Investments, adding that a stronger rupee provided some respite, yet overall sentiment stayed cautious amid persistent FII outflows.”Sector-wise, while auto stocks gained on robust IIP data, metal stocks gained due to higher metal prices enabling better realisations. Similarly, PSU banks advanced on improved asset quality. Looking ahead, the market is anticipated to stay sideways, awaiting more pronounced outcomes from US-India trade talks and the Q3 results calendar,” said Nair.

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US markets

U.S. stocks traded slightly lower as tech stocks weakened for a second straight day, dragging on the Dow as well. Gold saw some recovery while Treasury yields also firmed. Despite a turbulent year marked by trade wars, a record U.S. government shutdown and geopolitical tensions, major U.S. and global indexes remain on course to finish with solid double-digit gains.

European markets

European stocks hit record highs, lifted by gains in banking and commodities shares. MSCI’s global index slipped 0.07% to 1,020.02, even as regional benchmarks advanced. The STOXX 600 rose 0.62%, and the FTSEurofirst 300 added 14.92 points, or 0.64%, extending Europe’s market momentum.

Tech View

The Nifty has slipped to the upper band of the falling wedge pattern, where the correction appears to have been arrested, said Rupak De, Senior Technical Analyst at LKP Securities, adding that some negative technical factors may influence market sentiment in the coming days.

“The index has fallen below the middle Bollinger Band, the RSI has entered a bearish crossover, and the Nifty has also slipped below the 21 EMA, reinforcing the short-term downtrend. Immediate support is placed in the 25,850–25,870 zone. A decisive break below this level could intensify bearish sentiment, while resistance is placed at 26,000,” said De.

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Most active stocks in terms of turnover

Hindustan Copper (Rs 7,949 crore), HDFC Bank (Rs 3,280 crore), ICICI Bank (Rs 3,280 crore), Maruti Suzuki (Rs 1,759 crore), Shriram Finance (Rs 1,734 crore), Hero MotoCorp (Rs 1,734 crore) and Dixon Technologies (Rs 1,639 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: 67.44 crore), YES Bank (Traded shares: 26.7 crore), Hindustan Copper (Traded shares: 15.33 crore), Suzlon Energy (Traded shares: 10.13 crore), Reliance Power (Traded shares: 9.9 crore), HFCL (Traded shares: 9.5 crore) and Canara Bank (Traded shares: 7.6 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of Hindustan Copper, Asahi India Glass, IOB, NALCO, Honasa Consumer, SAIL and SKF India were among the stocks that witnessed strong buying interest from market participants.

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52 Week high

Over 108 stocks hit their 52-week highs today, while 195 stocks slipped to their 52-week lows. Among the ones which hit their 52-week highs were Jindal Stainless and Maruti Suzuki.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Lloyds Metals, Caplin Point, Coromandel International, Intellect Design, PTC Industries, Reliance Power and Godfrey Philips.

Sentiment meter bearish

The market sentiments were bearish. Out of the 4,347 stocks that traded on the BSE on Monday, 2,320 stocks witnessed declines, 1,864 saw advances, while 163 stocks remained unchanged.

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