Ahead of Market: 10 things that will decide stock market action on Tuesday
Sensex rose over 43 points to close at 78,542, while Nifty 50 gained around 13 points to end the session at 24,584 on Monday. Broader markets ended mixed, with Nifty Smallcap 100 falling 0.3% while Nifty Midcap 100 rising 0.6%.
Here’s how analysts read the market pulse
Markets remained on a tight leash as uncertainty surrounding the Strait of Hormuz continued to temper risk appetite, even as encouraging corporate earnings lent support to broader sentiment, said Vinod Nair, Head of Research at Geojit Investments.
Globally, softer-than-expected US jobs data weakened the case for Fed tightening, shifting investor focus to upcoming US inflation readings for fresh direction on rates and bond yields, the analyst noted, adding that a softer yield environment could revive interest in emerging markets and pave the way for stronger FII participation.
“Amid these global crosscurrents, India’s robust domestic growth engines and resilient economic fundamentals continue to stand out, providing a strong anchor for investor confidence,” Nair further said.
US stocks
Wall Street’s main indexes inched lower on Monday after the S&P 500 and the Dow hit record highs last week, as investors weighed Middle East developments and awaited crucial inflation data and earnings.
Iran said it was close to a final agreement with Oman defining new shipping lanes between them, but repeated that the U.S. must meet several conditions before the strategic waterway reopens.
Easing energy flows through the crucial choke point could mitigate concerns over heightened oil prices that have spurred inflation worries and betson interest rate hikes by central banks worldwide.
Consumer and producer inflation readings due later this week could offer key clues on the Federal Reserve’s monetary policy path, given Fed Chair Kevin Warsh’s stance of offering muted forward guidance.
European markets
Europe’s benchmark stock index held near a record high on Monday as investors paused ahead of a week packed with economic data, while uncertainty surrounding the Middle East conflict kept oil prices elevated.
The pan-European STOXX 600 was little changed at 660.45 points. The energy sector led gains, rising 1.3%, as oil prices climbed for a fourth straight session.
Tech view
Nifty 50 remained volatile within a narrow range during the day, said Rupak De, Senior Technical Analyst at LKP Securities. He added that the near to short-term trend remains sideways to positive, as the index has been sustaining above the critical short-term 50 EMA.
The daily RSI remains in a bullish crossover, De said, adding that the 24,650 level remains a key resistance. A decisive move above this level might induce a sustained rally in the market. On the lower end, support is placed at 24,500, below which weakness might intensify, he said, while noting that until then, investors should expect range-bound and lacklustre movement.
Most active stocks in terms of turnover
Paytm (Rs 3,112 crore), ABB Power (Rs 2,406 crore), BSE (Rs 2,252 crore), Titan Company (Rs 1,853 crore), ICICI Bank (Rs 1,818 crore), SBI (Rs 1,802 crore) and HDFC Bank (Rs 1,695 crore) were among the most active stocks on NSE in value terms. Higher activity in a counter in value terms can help identify the counters with the highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Traded shares: 41.35 crore), Ola Electric Mobility (Traded shares: 6.23 crore), Suzlon Energy (Traded shares: 5.93 crore), Inox Wind (Traded shares: 5.31 crore), Pine Labs (Traded shares: 3.94 crore), Yes Bank (Traded shares: 3.79 crore), and JP Power (Traded shares: 3.44 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
ABB Power, Paytm, Syrma SGS Technology, BEML, Sumitomo Chemical, Schneider and Pine Labs were among the stocks that witnessed strong buying interest from market participants.
52-week high
Among the ones which hit their 52-week highs on NSE included Paytm, Syrma SGS Technology, Sai Lifesciences, Vijaya Diagnostic, Titan Company, Lenskart Solutions and Jindal Saw.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were PFC, Bharat Forge, REC, NLC India, Inox Wind, Indus Towers and Amber Enterprises.
52-week low
Among the ones which hit their 52-week lows on NSE included Inox Wind and Afcons Infrastructure.
Sentiment meter favours bulls
Out of the 3,560 stocks that traded on the NSE on August 10, Monday, 1,739 stocks witnessed advances, 1,703 saw declines while 118 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)
