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

The Indian market ended in the red on Thursday as a bounce in rate-sensitive IT stocks on near certainty of a US rate cut next week was offset by declines in almost all other sectors on caution over domestic inflation data.

The benchmark S&P BSE Sensex fell 236.18 points, or 0.3%, to settle at 81,289.96, while the broader Nifty 50 index ended 93.10 points, or 0.38% lower, at 24,548.70.

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 the market continues to remain range bound ahead of domestic CPI data and a weaker rupee.

“Even as inflation is expected to ease, investors are keeping a close watch on vegetable prices, which will determine the future rate path. Meanwhile, the Nifty IT index hit fresh highs after US inflation data met expectations, boosting hopes of a Fed rate cut next week,” Nair added.

US markets

The S&P 500 and Nasdaq were lower on Thursday after closing higher in the previous session, as investors assessed the final economic data release ahead of the Federal Reserve’s next meeting. New data showed US producer prices rose more than expected in November. Food costs, though softer service prices, suggest that the disinflationary trend remains intact.

Tech View

The Nifty slipped below the recent consolidation on the daily chart, indicating a bearish trend in the near term, said Rupak De, senior technical analyst at LKP Securities.

However, the decline was limited and the index managed to stay above 24,500. This sideways consolidation in Nifty may continue for a few more days as the index remains in a defined range. A decisive break below 24,470 could trigger a meaningful correction in the market. On the upside, resistance is seen at 24,650-24,700,” Day added.

Most active stocks in terms of turnover

Godrej Properties (Rs 954.61 crore), Nuwama Wealth Management (Rs 359.17 crore), Star Health (Rs 156.48 crore), Adani Power (Rs 151.49 crore), Adani Green Energy (Rs 126.02 crore), Reliance Industries Limited (Rs. 56.8 crore) and Coforge (Rs. 64.75 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 (Shares traded: 29.28 crore), Yes Bank (Shares traded: 17.99 crore), Tata Teleservices (Maharashtra) (Shares traded: 10.95 crore), Nalco (Shares traded: 5.83 crore), IRFC (Shares traded: 5.9 crore), Zomato (traded Shares: 3.84 crore) and Suzlon Energy (shares traded: 3.36 crore) was one of the most actively traded stocks in terms of volume on the NSE.

Stocks show interest in buying

Shares of Chalet Hotels, Adani Green Energy, BLS International Services, Tata Teleservices, Century Plyboards, Aadhaar Housing Finance and Adani Power witnessed strong buying interest from market participants.

52 week high

Over 259 stocks touched their 52-week highs today while 22 stocks slipped to their 52-week lows. Among those touching their 52-week high were Chalet Hotels, EID Perry, Max Healthcare, Muthoot Finance, CoForge, Otham Investment & Infrastructure and Tech Mahindra.

Selling pressure is seen in stocks

Nalco, Jubilant Food, Nuwama Wealth Management, Go Digit General Insurance, Indus Towers, Akums Drugs & Pharmaceuticals and Alembic Pharma witnessed significant selling pressure.

The sentiment meter favors the bulls

Market sentiment was bearish. Out of 4,105 stocks traded on BSE on Thursday, 2,517 stocks declined, 1,481 stocks gained, while 107 stocks remained unchanged.

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