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

The Indian market closed in the green on Monday following better-than-expected quarterly earnings in Kotak Mahindra Bank and Wipro while Zomato tumbled over 7% after posting weaker-than-expected quarterly results before the market closed.

The benchmark BSE Sensex rose 454.11 points, or 0.59%, to close at 77,073.44, while the broader Nifty 50 index gained 141.55 points, or 0.61%, to close at 23,344.75.

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 strong positive sentiment from Asian markets boosted domestic markets, starting the week on a healthy note. Additionally, a strong early set of earnings from the banking and financials sectors fueled a broad-based rally, due to the prospect of better earnings in the near future, Nair said.

“However, uncertainties surrounding Trump’s policies persist, with investors eagerly awaiting further clarity. Oil prices remain high is another key concern,” Nair added.

US markets

US markets were closed on Monday as the US observes January 20 as Martin Luther King Jr Day, a holiday.

Tech View

The Nifty remained volatile before closing at a six-day high, indicating an improvement in sentiment, said Rupak De, senior technical analyst at LKP Securities.

“In the short term, the index may rise to 23,450. A decisive move above 23,450 may trigger a rally towards 23,800/24,000. Lower end support is placed at 23,150,” Day added.

Most active stocks in terms of turnover

Axis Bank (Rs. 3,296.57 crore), Kotak Mahindra Bank (Rs. 2,547.92 crore), Zomato (Rs. 2,510.09 crore), Kalyan Jewelers India (Rs. 2,271.74 crore), Reliance Industries Limited (Rs. 1,836.20 crore), Vodafone (Rs. 1,836.20 crore), crore) and HDFC Bank (Rs 1,445.70 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 shares: 173.90 crore), Yes Bank (traded shares: 10.89 crore), Zomato (traded shares: 10.26 crore), Tata Teleservices (traded shares: 8.68 crore), Easy Trip Planners (traded shares: 4.6 crore), Suzlon Energy (traded Share: 4.95 crore) and Kalyan Jewelers India (shares traded: 4.22 crore) were among the most actively traded stocks in terms of volume on the NSE.

Stocks show interest in buying

Shares of Tata Teleservices, CreditAccess Grameen, Kotak Mahindra Bank, Vodafone Idea, Gujarat Ambuja Exports, Tejas Networks and Wipro saw strong buying interest from market participants.

52 week high

Over 115 stocks touched their 52-week highs today while 75 stocks slipped to their 52-week lows. Among those hitting their 52-week high were Biocon Ltd.

Selling pressure is seen in stocks

Stocks like Swan Energy, BLS International Services, Sterling & Wilson Renewable Energy, Netweb Technologies India, PTC Industries, Supreme Industries and UNO Minda saw significant selling pressure.

Sentiment meter bullish

Market sentiment was bullish. Out of 4,228 stocks traded on BSE on Monday, 1,557 stocks declined, 2,503 stocks gained, while 168 stocks remained unchanged.

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