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

The sell-off in Indian stocks intensified as the Middle East conflict entered its second week with no signs of abating. A sustained rise in crude prices is likely to complicate the RBI’s policy outlook by keeping inflation elevated and posing risks to growth.

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

“The current phase may offer opportunities for long-term investors. Selective value buying in pharma and IT helped limit further losses and signaled a defensive stance amid a weakening rupee in the short term,” said Vinod Nair, head of research at Geojit Investments.

US stocks

Wall Street’s major indexes fell more than 1% on Monday, as oil prices rose, raising inflation fears as hostilities in the Middle East entered their tenth day.

Geopolitical tensions deepened after Iran named Mojtaba Khamenei, son of the late Ali Khamenei, as supreme leader, signaling a firmer grip on hardliners in Tehran.

Crude prices fell to just below $120 a barrel but governments including the Group of Seven (G7) and Saudi Arabia began discussions to limit the spike in energy costs through additional supply.

European markets

European shares tumbled to their lowest levels in more than two months on Monday, as a sharp rise in oil prices fueled inflation fears and the US-Israeli war with Iran showed no signs of easing.

Tech View

Maintaining the index above the support of 23,700 would signal a pullback towards 24,400-24,500 levels in the coming sessions. Failure to do so will lead to an extension of the decline towards 23400-23,200 levels.

Most active stocks in terms of turnover

RIL (Rs. 3,492 crore), HDFC Bank (Rs. 2,967), SBI (Rs. 2,667 crore), ICICI Bank (Rs. 2,049 crore), IndiGo (Rs. 1,767 crore), L&T (Rs. 1,611 crore) and ONGC (Rs. 1,554 crore) were among the most active stocks on the day trading in B. Can help identify counters with turnover.

Most active stocks in terms of volume

Vodafone Idea (Traded Shares: 41,41,86,823), Yes Bank (Traded Shares: 10,68,87,032), Suzlon Energy (Traded Shares: 7,17,21,599), Reliance Power (Traded Shares: 5,92,92,98), ONG (5,65,12,457), IDFC First Bank (Shares traded: 5,50,90,634) and Eternal (Shares traded: 4,85,05,614) were among the most actively traded stocks on BSE in terms of volume.

Stocks show interest in buying

Emcure Pharma, Aadhar Housing Finance, Affle India, IndiaMart, Praj Industries, Balrampur Chini and Avenue Supermart were among the stocks that saw strong buying interest from market participants.

Selling pressure is seen in stocks

Names that saw significant selling pressure included PG Electroplast, Sapphire Foods, IDBI Bank, Tejas Networks, MRPL, GSPL and Choice International.

The sentiment meter favors the bears

Out of 4,536 stocks traded on BSE on Monday, March 9, 886 stocks saw gains, 3,484 stocks declined while 166 stocks remained unchanged.

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