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

Indian benchmark indices hit fresh lifetime highs on Monday, though trade was range-bound. While the 50-stock Nifty scaled 25,445.70 before ending the session at 25,377.80 and up 21.30 points or 0.08% from Friday’s close, the S&P BSE Sensex hit a record high of 83,184.34 before ending the session at 82,989.58 or 82,989.5%.

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

Commenting on the day’s action, Jatin Gedia, technical research analyst at Sharekhan, said he expects the consolidation to continue for two trading sessions with stock specific actions at the fore. “The undertone is bullish, and it is likely to resume its upside once the consolidation phase is over. Upside is likely towards 25,500 – 25,700. Support is placed in the 25,200 – 25,150 zone,” Gedia said.

US Markets:
On Monday, technology stocks led the S&P 500 and Nasdaq open as investors remained cautious ahead of a crucial Federal Reserve monetary policy decision later in the week. Most traders are anticipating a significant cut in borrowing costs. The Dow has hit record highs intraday, and the S&P 500 is nearing its own milestone.

Chip stocks, which are sensitive to interest rates, have experienced declines. Nvidia, a key driver of this year’s rally, fell 2%, Broadcom fell 2.2%, and Qualcomm fell 1.5%. The loss sent the Philadelphia SE Semiconductor Index down 1.7%.

Since the start of the year, markets have been buoyed by expectations that the Federal Reserve, the world’s most influential central bank, will soon begin a cycle of monetary policy easing.

European Stocks:
On Monday, Europe’s STOXX 600 ended lower, dragged down by losses in key technology stocks, as attention turned to the US Federal Reserve, expected to begin its policy easing cycle this week. The STOXX 600 ended a three-day winning streak, ending 0.2% lower.

Technology stocks were the biggest losers, falling 1.2% after rising nearly 5% the previous week. Retail stocks led the gains with a 0.9% gain, led by a 3.1% rise in H&M shares.

Tech View
Rupak De, senior technical analyst at LKP Securities, said that the trend in Nifty appears to be strong and there is no change in formation compared to the previous day on the technical chart. However, the upside remains limited in the short term, he opined. “Key support levels are still intact between 25,150-25,200, while resistance is positioned around 25,460-25,500. A decisive breakout from the current range could initiate a directional move,” Day said.

Most active stocks in terms of turnover
Bajaj Housing Finance (Rs 954 crore), India Shelter Finance Corporation (Rs 575 crore), SpiceJet (Rs 206 crore), Zomato (Rs 120 crore) and Adani Power (Rs 117 crore) are the highest on the BSE by value. were involved in active stocks. High activity in a counter in terms of terms value can help identify counters with the highest trading turnover in a day.

Most active stocks in terms of volume
Bajaj Housing (traded shares: 6.08 crore), SpiceJet (traded shares: 2.69 crore), Vodafone Idea (traded shares: 2.61 crore), Yes Bank (traded shares: 1.51 crore), Rama Steel (traded shares: 1.51 crore), GTL Infra (traded shares: 1.48 crore), Suzlon (traded shares: 1.01 crore) and India Shelter Finance (traded shares: 76.39 lakh) were among the most actively traded stocks on BSE in terms of volume.

Stocks show interest in buying
Shares of Aarti Surfactants, Arihant Capital Markets, Galaxy Surfactants, Spicejet, LT Foods, Thermax, MCX and Adani Power witnessed strong buying interest from market participants.

52 week high
Over 380 stocks touched their 52-week highs today while 35 stocks slipped to their 52-week lows. Among those touching their 52-week highs were Cartrad Tech, CET, Century Textiles, Coforge, Dixon Technologies, EPAC Durable, Fortis Healthcare, Galaxy Surfactants, HCL Technologies, Indian Energy Exchange (IEX) and JSW Steel.

Selling pressure is seen in stocks
Large cap names include Bajaj Finance, Hindustan Unilever (HUL), Bajaj Finserv, SBI Life Insurance Company and Britannia Industries. Other stocks that saw significant selling pressure included India Shelter Finance, Mangalam Seeds, 63 Moons, Inox Wind and Yatharth Hospital & Trauma Care Services.

The sentiment meter favors the bulls
While moves in heavyweights like ICICI Bank, Larsen & Toubro (L&T), NTPC and HDFC Bank helped markets end with gains, the overall breadth was evenly split between bulls and bears. Out of 4,201 stocks traded on BSE on Monday, 2,065 stocks rose, while 2,045 stocks declined while 91 stocks remained unchanged.

Also Read: SEBI Fast-Track Credit, Bonus Shares Trading in T+2 Days

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