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

Indian markets were closed on Wednesday, December 25, due to the Christmas holiday, while Indian benchmark indices closed marginally lower on Tuesday as losses in heavyweight financials and IT stocks offset losses. This offset gains in consumer and auto stocks. With the holiday-shortened week lacking major triggers, analysts expect a range-bound move for benchmark indices following Monday’s rebound from the worst week in 30 months.

The benchmark BSE Sensex closed down 67.30 points, or 0.09%, at 78,472.87, while the broader Nifty 50 index ended 25.80 points, or 0.11% lower, at 23,727.65.

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 domestic market ended flat ahead of the holiday, with metal and power stocks dragging performance while FMCG and auto sectors benefited from recent corrections.

“The near-term market trajectory hinges on Q3 results and the outcome of the Union Budget, but caution prevails due to a stronger dollar, higher bond yields and concerns about rate cuts. INR hitting all-time lows, prompting further caution,” Nair added.

Asian Shares

Stocks fell on Wednesday in Tokyo and Shanghai, the only two world markets open on Christmas Day. Oil prices rose. Japan’s Nikkei 225 index fell 0.1 percent to 38,997.02, while the Shanghai Composite index fell 0.2 percent to 3,387.41.

US markets

All major Wall Street indexes closed higher on Tuesday, with gains in megacap and growth stocks boosting the benchmark in the Christmas Eve session. The Dow Jones Industrial Average and Nasdaq Composite both posted four straight sessions of gains, with the S&P 500 extending its winning streak to three sessions, marking the first day of a seasonal Santa Claus rally.

European markets

The UK’s benchmark FTSE 100 rose for a second day on thin trading volume ahead of the Christmas break on Tuesday, while shares in homebuilder Vistry fell after it issued its third profit warning since October.

Tech View

The Nifty remained largely rangebound throughout the day before closing flat. On the daily chart, the index closed below the 200-DMA for the first time in three days, confirming a short-term bearish trend, said Rupak De, senior technical analyst at LKP Securities.

“The RSI is in a bearish crossover and continues to decline, reinforcing the negative outlook. On the downside, support is placed at 23,500-23,400 zone, while resistance is seen at 23,860,” said Day.

Most active stocks in terms of turnover

Amber Enterprises (Rs 3,752.03 crore), Tata Investments (Rs 1,581.01 crore), HDFC Bank (Rs 1,302.83 crore), Zomato (Rs 1,012.95 crore), ICICI Bank (Rs 925.06 crore), Tata Motors (Rs 436.46 crore) Crore and S.42.4 Crore) Crore) were among the most active stocks on the NSE 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: 28.55 crore), Yes Bank (traded share: 4.47 crore), Zomato (traded share: 3.70 crore), JP Power (traded share: 3.36 crore), IDFC First Bank (Rs. 2.62 crore), Tata Steel (traded share: Rs. 2.58 crore) and Suzlon Energy (traded shares: 2.48 crore) were among the most actively traded stocks on the NSE in terms of volume.

Stocks show interest in buying

Shares of Finolex Cables, Triveni Engineering & Industries, Gillette India, Emami, RBL Bank, Solar Industries and Amber Enterprises witnessed strong buying interest from market participants.

52 week high

Over 170 stocks touched their 52-week highs today while 64 stocks slipped to their 52-week lows. Among those hitting their 52-week highs were Amber Enterprises, KFIN Technologies and Lloyds Metals & Energy.

Selling pressure is seen in stocks

Significant selling pressure was seen from Intellect Design, Go Digit General Insurance, KEC International, Torrent Power, Network18 Media, Mankind Pharma and Policy Bazaar.

The sentiment meter favors the bulls

Market sentiment was neutral. Out of 4,092 stocks traded on BSE on Tuesday, 2,060 stocks declined, 1,936 stocks gained, while 96 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)