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

Indian equity markets rebounded on Wednesday due to fresh foreign fund inflows and buying seen in the energy, commodity and PSE sectors. The benchmark S&P BSE Sensex rose 230.02 points, or 0.29%, to settle at 80,234.08, while the broader Nifty 50 index closed up 80.40 points, or 0.33%, at 24,274.90.

Here’s how analysts read the pulse of the market:
Commenting on the day’s action, Ajit Mishra, market analyst, SVP, Research, Religare Broking Ltd, said markets remained range-bound for the third consecutive session, closing slightly higher and continuing the ongoing consolidation phase.

“The Nifty has shown resilience during this consolidation phase, and the upcoming monthly expiry of the November derivatives contract on Thursday could potentially trigger a breakout above the 24,350 level, paving the way towards 24,550. Notably, rotational buying in select heavyweight stocks across sectors is helping to sustain positive market sentiment,” Mishra said.

US markets
The S&P 500 and Nasdaq slipped on Wednesday, dragged by tech stocks, as investors assessed the Federal Reserve’s next steps after the release of in-line inflation data.

The personal consumption expenditure (PCE) index, the Fed’s favorite measure of inflation, rose 2.3% annually in October, matching expectations but staying above the 2% target.

Nvidia fell 2.5%, and Microsoft fell 0.6%, dragging the tech sector down 1.1%. Dell and HP each sank more than 10% after issuing disappointing forecasts, leading losses on the S&P 500.

Tech View
Nifty’s near-term trend continues with range bound action, said Nagaraj Shetty, senior technical research analyst at HDFC Securities, adding that “As long as Nifty continues with range bound movement, chances of a decisive upside breakout are high. In the near term. Immediate barriers seen around 24400-24500 and nearest support placed at 24150.

“A small positive candle with a small upper and lower shadow was formed on the daily chart. Wednesday’s candle was placed next to Tuesday’s same negative candle. Hence, this market action could mean broad range movement with a small positive bias,” said Shetty.

Most active stocks in terms of turnover
Adani Power (Rs. 352.89 crore), Adani Enterprises (Rs. 223.88 crore), WABCO India (Rs. 196.83 crore), Zomato (Rs. 169.12 crore), Adani Ports SEZ (Rs. 128.23 crore), Adani Green Energy (Rs. 115.87 crore and Adani a total of Rs. 115.87 crore) Gas (Rs 72.82 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
Vodafone Idea (traded shares: 116.25 crore), Yes Bank (traded shares: 8.24 crore), Tata Teleservices (traded shares: 6.72 crore), Zomato (traded shares: 6.66 crore), Adani Power (traded shares: 5.81 crore), JP Power (traded shares: 5.51 crore) and India Electronic Limited in terms of volume on NSE (Shares traded: 3.95 crore) was one of the most actively traded stocks.

Stocks show interest in buying
Shares of Adani Total Gas, Adani Power, Adani Enterprises, Adani Green Energy, Adani Transmission, Engineers India and Aster DM Health witnessed strong buying interest from market participants.

52 week high
Over 216 stocks touched their 52-week highs today while 37 stocks slipped to their 52-week lows. Aditya Birla Sun Life AMC, eClerx Services, CAMS, HDFC Bank, Mastec Limited, Coforge Limited and Tech Mahindra.

Selling pressure is seen in stocks
Large cap names include Fortis Healthcare and Bajaj Holdings & Investments. Other stocks like Rainbow Children’s Medicare, UNO Minda, Algi Equipments, Prestige Estates and WABCO India saw significant selling pressure.

The sentiment meter favors the bulls
Market sentiment was bullish. Out of 4,040 stocks traded on BSE on Wednesday, 1,338 stocks declined, 2,593 stocks gained while 109 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)