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

Indian stock markets ended in the red on Thursday, dragged down by declines in major IT stocks, while uncertainty over a US interest rate cut and growing concerns over US President-elect Donald Trump’s policies also dampened sentiment.

The benchmark S&P BSE Sensex settled down 1,190.34 points, or 1.48%, at 79,043.74, while the broader Nifty 50 index shed 360.75 points, or 1.49%, at 23,914.15.

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

Commenting on the day’s action, Vinod Nair, head of research at Geojit Financial Services, said domestic markets took a breather after a strong start to the week.

“An overnight sell-off in the US market, renewed uncertainty about the path of rate cuts and rising geopolitical tensions led to a correction in heavyweight IT and consumer discretionary stocks,” Nair said, adding that “in contrast, the broader market outperformed .Frontline Index Undervalued Stocks Due to Change in FIIs’ Attitude and Investors Seeking Opportunities.”

US markets

US markets were closed on Thursday, November 28 due to Thanksgiving Day.

European stocks

European stocks rose on Thursday after falling the previous day, while Asian stocks slipped as trading volume thinned ahead of the US Thanksgiving holiday.

Europe’s continent-wide STOXX 600 index rose 0.48%, after falling 0.75% in the previous two sessions.

European markets were boosted by a rally in tech shares after Bloomberg reported that the Biden administration’s crackdown on Chinese chips may be less severe than expected.

Tech View

The Nifty slipped sharply during the day, breaking below the crucial support level of 23,940, said Rupak De, senior technical analyst at LKP Securities, adding that “sentiment looks weak, and further weakness looks possible from here.”

“On the daily chart, the index has closed the gap created recently. In the short term, if the Nifty goes below 23,870, it may continue to decline towards 23,500. However, if it sustains above 23,870 and does not make a lower low, it could witness a sharp recovery towards 24,200 and above,” Day added.

Most active stocks in terms of turnover

Adani Power (Rs 304.53 crore), Adani Enterprises (Rs 290.23 crore), Adani Ports SEZ (Rs 178.43 crore), Adani Green Energy (Rs 152.60 crore), Adani Total Gas (Rs 115.59 crore), Adani Energy Solutions (Rs. 717 crores), and Axis Bank (Rs 91.71 crore) was one of the most active stocks on the BSE in terms of value. 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 (traded share: 102.29 crore), JP Power (traded share: 17.40 crore), Yes Bank (traded share: 10.17 crore), Adani Power (traded share: 6.08 crore), Zomato (traded share: 4.96 crore), Ujjivan SFB (traded share: 5.57 crore) and Suzlon Energy (Trade Shares traded: 4.26 crore) was one of the most actively traded stocks in terms of volume on the NSE.

Stocks show interest in buying

Shares of Adani Total Gas, Adani Energy Solutions, Honasa Consumer, Adani Green Energy, Jaypee Power, ITI Limited and Adani Power witnessed strong buying interest from market participants.

52 week high

Over 203 stocks touched their 52-week highs today while 23 stocks slipped to their 52-week lows. Among those reaching their 52-week high were KEC International, EID Perry (India), Laurus Labs, Caplin Point, Paytm, CAMS and eClerx Services.

Selling pressure is seen in stocks

Large cap names include SBI Life Insurance and Infosys. Rainbow Children’s Medicare, Amber Enterprises, Max Financial, Triveni Turbine and Tata Teleservices saw significant selling pressure.

The sentiment meter favors the bulls

Market sentiment was bullish. Out of 4,049 stocks traded on BSE on Thursday, 1,815 stocks declined, 2,127 stocks gained while 107 stocks remained unchanged.

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