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

Indian benchmark indices closed flat on Wednesday with consumer and IT stocks rallying, as market participants awaited key inflation data from the US and India for signs of rate path from both countries.

The benchmark S&P BSE Sensex rose 16.09 points, or 0.02%, to settle at 81,526.14, while the broader Nifty 50 index closed up 31.75 points, or 0.13%, at 24,641.80.

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 Indian market exhibited subtle movements, reflecting mixed sentiments prevailing in global markets ahead of the US CPI inflation data release, which could influence US FED policy.

“The US dollar strengthened, while bond yields saw a marginal increase. Defensive sectors including FMCG and pharmaceuticals were bullish. Additionally, the metals sector saw gains due to optimism around possible stimulus measures from China,” Nair added.

US markets

US stock markets advanced on Wednesday as inflation data matched forecasts, bolstering expectations of a rate cut by the Federal Reserve later this month.

The Consumer Price Index (CPI) rose 0.3% in November, in line with estimates, while annual inflation stood at 2.7%. Core inflation excluding food and energy came in at 3.3%, also in line with forecasts.

US government bond yields fell following the report, with the 10-year Treasury yield falling to 4.2108%, as bond prices rose.

Eight of the 11 major S&P sectors saw gains, led by a 1.3% gain in consumer discretionary and a 1.8% rise in communications services. Megacap stocks also gained, with Tesla up 1.8% and Amazon.com up 2%.

European stocks

European stocks recovered earlier losses and closed lower on Wednesday, as investors added to bets that the Federal Reserve could cut interest rates later in the month after an in-line US inflation report.

The pan-European STOXX 600 index slipped earlier in the day, but settled 0.3% higher after US data showed the consumer price index (CPI) rose as expected in November, both monthly and annually.

Tech View

Benchmark indices experienced limited movement, with the Nifty up 32 points and the Sensex up 16 points, on the daily chart, the index formed a small candlestick, said Srikant Chauhan, head equity research, Kotak Securities. has formed Which indicates indecisiveness between bulls and bears.

“We believe that the current market structure is unidirectional; Traders may be waiting for a breakout in either direction. On the upside, if the market breaks above 24,700/81700, it may extend to 24,800-24,825/82000-82200 range. Conversely, a decline below 24,500/81000 could add to the selling pressure. Below the same, it may retest the levels of 24,400-24,350/80700-80500,” Chauhan added.

Most active stocks in terms of turnover

Titagarh Vegans (Rs 94.22 crore), Axis Bank (Rs 88.46 crore), Jupiter Vegans (Rs 79.51 crore), Reliance Industries Limited (Rs 76.24 crore), IRFC (Rs 74.02 crore), Zomato (Rs 71.55 crore and Energy) Rs. 68.33 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 (Shares traded: 24.38 crore), IRFC (Shares traded: 8.68 crore), Yes Bank (Shares traded: 6.59 crore), IRB Infrastructure Developers (Shares traded: 5.44 crore), JP Power (Shares traded: 4.16 crore), Zomato (Shares traded : 3.91 crore) and Suzlon Energy (Shares traded: 3.25 crore) and was one of the most actively traded stocks in terms of volume on the NSE.

Stocks show interest in buying

Shares of PNC Infratech, Jupiter Wagons, Swan Energy, Jubilant Ingravia, Titagarh Wagons, Ircon International and EIH witnessed strong buying interest from market participants.

52 week high

Over 272 stocks touched their 52-week highs today while 15 stocks slipped to their 52-week lows. Among those hitting their 52-week highs were Swan Energy, Jubilant Ingravia, Vedanta, Canes Technology, Aris Lifesciences, Max Healthcare and 360 One Way.

Selling pressure is seen in stocks

Among the stocks that saw significant selling pressure were ITI Limited, Mahindra Lifespace, CCL Products, Brigade Enterprises, PNB Housing, Emami and Trident Ltd.

The sentiment meter favors the bulls

Market sentiment was neutral. Out of 4,096 stocks traded on BSE on Wednesday, 1,902 stocks declined, 2,084 stocks gained, while 110 stocks remained unchanged.

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