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

Indian benchmark indices closed flat on monthly expiry today (Thursday, December 26). The weakness was due to corrections in FMCG and bank stocks, though auto and pharma stocks held some ground. While the S&P BSE Sensex settled down 0.39 points at 78,472.48, the Nifty gained 22.55 points or 0.1% to close at 23,750.20.

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

Commenting on the day’s action, Rupak De, senior technical analyst at LKP Securities, said the Nifty’s sideways movement is because investors have chosen to stay on the sidelines. “The index remained below the 200 DMA, reinforcing the prevailing weakness. The RSI indicator is showing bearish momentum with a weak crossover, indicating sluggish movement. In the short term, the index may remain under pressure or struggle to move higher. .support is at 23,700/23,600, while resistance is seen at 23,850, Day said.

US markets

Wall Street’s main indexes edged lower on Thursday amid light trading volumes, as rising yields weighed on stocks, while investors awaited a potential year-end boost from a “Santa Claus rally.” Yields on government bonds rose along with the benchmark 10-year yield. reached 4.64%, the highest since early May.

Among megacap stocks, Amazon.com fell 0.3% and Meta Platforms fell 0.6%.

Rate-sensitive real estate stocks led the losses, falling 0.4%, followed by consumer discretionary stocks, which shed 0.5%.

European markets

Major European markets are closed on Thursday, as well as Hong Kong, Australia, New Zealand and Indonesia.

Tech View

The Nifty has traded in a narrow range of 300 points this week and is not showing any clear direction, said Chandan Taparia, head of wealth management at MOFSL. “For the past three days the index has been struggling near the 23,870 level while on the downside support has been found around 23,600. This battle between the bulls and bears has resulted in multiple dojis on the daily chart. Candlesticks and inner bars were formed indicating indecisiveness. Nifty is close to its 200-day EMA and its short-term moving average is also on the weekly chart, the index has formed a doji candlestick. Which suggests support-based buying, but with limited upside potential,” he said.

On the option front, maximum CALL OI is at 24,000 followed by 25,000 strike while maximum PUT OI is at 23,800 followed by 23,000 strike, this analyst said, calling writing is seen at 23,800 followed by 24,000 strike while PUT writing is seen at 20,000. 230 strikes on.

Options data suggests a broad trading range between 23,200 to 24,200 zone while immediate range is between 23,500 to 23,900 levels, said a MOFSL expert.

Most active stocks in terms of turnover

One Mobiquik Systems (Rs 433.21 crore), Vishal Mega Mart (Rs 122.19 crore), International Gemmological Institute India (Rs 120.71 crore), Mazagon Dock (Rs 106.41 crore), Reliance Industries (RIL, Rs 68.05 crore) ), In56.5. crore) and Tata Motors (Rs 56.09 crore) were among 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

Shrestha Finvest (traded shares: 4.25 crore), Vodafone Idea (traded shares: 3.71 crore), Mishtan Foods (traded shares: 1.15 crore), Yes Bank (traded shares: 74.74 crore), GTL Infra (traded shares: 72.16 lakh), One Mobiquik (traded Shares: 66.02 lakhs) and Segility India (Shares traded: 42.91 lakh) were among the most actively traded stocks on BSE in terms of volume.

Stocks show interest in buying

Shares of Adani Ports and Special Economic Zone (APSEZ), Intellect Design, Godfrey Phillips, Amber Enterprises, Caffeine Technologies, PNC Infratech, Nugen Technologies and Bluedart witnessed strong buying interest from market participants.

52 week high

Over 155 stocks touched their 52-week highs today while 80 stocks slipped to their 52-week lows. 360 One Wem, Ember Enterprises, Cartrad Tech, International Gemmological Institute, Inventurus Knowledge Solutions, One Mobiquik, Nugen, Piccadilly Agro Industries and Segility.

Selling pressure is seen in stocks

Large cap names include Titan Company, Asian Paints and Tata Consumer Products. Other stocks like Hindustan Copper, Finolex Cables, Titagarh Rail Systems, Page Industries, Vardhaman Textiles and Usha Martin saw significant selling pressure.

The sentiment meter favors the bears

Actions in heavyweights like HDFC Bank, Reliance Industries, Larsen & Toubro (L&T) and Titan ensured a flat end to the market. Market sentiment was bearish. Out of 4,074 stocks traded on BSE on Thursday, 2,395 stocks declined, 1,593 stocks gained while 86 stocks remained unchanged.

Also Read: Nasdaq, Hang Seng beat Nifty by a wide margin. Will it be India’s turn in 2025?

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