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

Indian markets ended in the red on Monday, under pressure from heavyweight lenders such as HDFC Bank and ICICI Bank, along with declines in auto stocks. The trading volume saw a dip in the session as the market approached the end of the year.

The benchmark BSE Sensex closed down 450.94 points, or 0.57%, at 78,248.13, while the broader Nifty 50 index ended 168.50 points, or 0.71% lower, at 23,644.90.

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 prevailing bearish sentiment due to FII selling and strengthening dollar is pulling the market.

“While IT and Pharma benefited as investors continued to bet on defensive stocks to ward off short-term volatility. Concerns about high valuations are affecting the broader market. The upcoming policy announcements in US and domestic Q3 earnings will be keenly watched by investors,” Nair added.

US markets

Wall Street’s major indexes opened sharply lower on Monday, hitting one-week lows, as thin trading volume and higher Treasury yields overshadowed a normal year-end rally.

All 11 S&P 500 sectors declined, led by consumer discretionary. Growth stocks such as Tesla and Meta fell 3.1% and 2.2%, respectively, while Broadcom fell 3.8%, dragging the semiconductor index down more than 2%.

This weakness defied the typical “Santa Claus rally,” where equities historically perform well during the last five trading days of December and the first two of January, with the S&P 500 gaining an average of 1.3% since 1969 (Stock Trader’s Almanac).

Tech View

The Nifty remained volatile during the session, moving between 23,600 and 23,900, said Rupak De, senior technical analyst at LKP Securities, adding that on the daily chart, the index has slipped below its recent consolidation.

“Furthermore, it continues to trade below the 200-DMA, indicating weak sentiment. The overall outlook remains negative for the short term with potential downside risks. At the lower end, support is seen at 23,400, while near-term resistance is expected around 23,870,” Day added.

Most active stocks in terms of turnover

Zomato (Rs 4,031.12 crore), ITI Limited (Rs 2,188.51 crore), Adani Enterprises (Rs 1,994.67 crore), HDFC Bank (Rs 1,983.56 crore), ICICI Bank (Rs 1,852.21 crore), SBI (Rs 1,756 crore) and Rs.1,482.47 crore) worth Vision was one of the most active stocks on the NSE. 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

Yes Bank (Traded Share: 1.20 Crore), IDFC First Bank (Traded Share: 0.36 Crore), IREDA (Traded Share: 0.31 Crore), JM Financial (Traded Share: 0.30 Crore), Easy Trip Planners (Rs. 0.29 Crore), Suzlon Energy (Traded Rs. Shares: 0.25 Crore) and Zomato (Traded Shares: 0.24 crore) was one of the most actively traded stocks in terms of volume on the NSE.

Stocks show interest in buying

Shares of ITI Ltd, AstraZeneca, Bajaj Holdings, IREDA, Adani Total Gas, Pfizer and CreditAccess Grameen were among the stocks that saw strong buying interest from market participants.

52 week high

Over 186 stocks touched their 52-week highs today while 117 stocks slipped to their 52-week lows. Among those hitting their 52-week highs were Bajaj Holdings, Crisil, Fortis Healthcare, Nugen Software, CoForge, KFIN Technologies and Lupine.

Selling pressure is seen in stocks

Thermax, Balaji Amines, Triveni Engineering & Industries, Godfrey Phillips, Bharat Dynamics, Reddington and Jindal Stainless witnessed significant selling pressure.

The sentiment meter favors the bulls

Market sentiment was bearish. Out of 4,267 stocks traded on BSE on Monday, 2,636 stocks declined, 1,487 stocks gained, while 144 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)