Ahead of the market: 10 things that will determine stock market action on Tuesday

Asian markets Sensex and Nifty ended higher on Monday amid optimism that Washington is nearing a resolution to the prolonged US government shutdown. Investor sentiment was also buoyed by stock-specific rallies after promising quarterly earnings.

The S&P BSE Sensex rose 0.38% to close at 83,535.35, up 319.07 points, while the NSE Nifty 50 closed up 0.32%, or 82.05 points, at 25,574.35.

Here’s how analysts read the pulse of the market:

A possible resolution of the US government shutdown, along with renewed FII buying due to a favorable Q2 earnings season, supported positive sentiment in the market, said Vinod Nair, head of research at Geojit Investments, adding that a rise in the US 10-year Treasury yield reflected an improvement in risk sentiment.

“Locally, strengthening macroeconomic indicators are expected to lead to an upward revision in earnings estimates for H2FY26. This reinforces current valuations and is likely to attract increased liquidity. Sectorally, the IT index outperforms, buoyed by expectations of demand stability,” said Nair.

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US markets

Wall Street’s main indexes rose on Monday following signs of progress in ending a record government shutdown in Washington that has stalled economic data releases and raised concerns about the state of the economy.

On Sunday, senators advanced a bill passed by the House in a procedural vote that would have been amended to fund the government until January 30. If passed in the Senate, it would need House approval and President Donald Trump’s signature, which could take several days.

European markets

European stocks rose about 1.4% on the upbeat mood, with the pan-European STOXX 600 up, while Diageo shares rose after the world’s biggest spirits maker appointed a new CEO.

Tech View

The Nifty traded in a narrow range of 25,500-25,650 during the session, said Rupak De, senior technical analyst at LKP Securities.On the upside, the index faced resistance near the 50 EMA, while the 21 EMA failed to sustain above the closing signal on weakness. Next one to two sessions.

“From a broader perspective, the index has taken support with the upper band of the descending channel on the daily timeframe, suggesting that the broader structure remains intact. However, a decisive move above 25,600 will be crucial to confirm the resumption of the directional uptrend. Until then, its sideways phase is likely to continue.”

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Most active stocks in terms of turnover

HBL Power (Rs 2,947 crore), Trent (Rs 2,935 crore), NALCO (Rs 1,848 crore), BSE (Rs 1,629 crore), HDFC Bank (Rs 1,577 crore), Bharti Airtel (Rs 1,504 crore) and Infosys (Rs 9 crore) were the most active among the B4 7 stocks. were High activity in a counter in terms of value can help identify counters with the highest trading turnover in a day.

Most active stocks in terms of volume

Vodafone Idea (Shares traded: 53.61 crore), Reliance Power (Shares traded: 10.76 crore), Nalco (Shares traded: 7.26 crore), Suzlon Energy (Shares traded: 6.30 crore), Yes Bank (Shares traded: 4.87 crore), N41 crore (Shares traded: 4.87 crore). crore shares. (Shares traded: 3.56 crore) was one of the most actively traded stocks in terms of volume on the NSE.

Stocks show interest in buying

Shares of HBL Power, Nalco, UNO Minda, Torrent Pharma, Balrampur Chinese, JB Chemicals and Nayaka witnessed strong buying interest from market participants.

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52 week high

Over 193 stocks touched their 52-week highs today while 199 stocks slipped to their 52-week lows. Among those reaching their 52-week highs

Bhel and sail.

Selling pressure is seen in stocks

Transformers & Rectifiers, JM Financial, Trent, Graphite India, Schneider, HEG and Global Health saw significant selling pressure.

Sentiment meter bearish

Market sentiment was bearish. Out of 4,513 stocks traded on BSE on Monday, 2,423 stocks declined, 1,918 stocks gained, while 172 stocks remained unchanged.

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