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

Indian markets closed modestly lower on Monday on weakness in auto and financial stocks, ending a two-session advance. Sentiment remained fragile amid continued foreign inflows, uncertainty over the US-India trade deal and the likely collapse of Mexico’s new tariff regime on imports, while the rupee slipped to a record low.

The S&P BSE Sensex closed down 54 points, or 0.06%, at 85,213. The NSE Nifty 50 closed down 20 points or 0.08% at 26,027.

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

Continued foreign fund outflows and a weak rupee have kept markets in a narrow range, with currency volatility likely to continue until there is clarity on the India-US trade deal, said Vinod Nair, head of research at Geojit Investments, adding expectations for earnings recovery in H2FY26, and supporting financial growth.

“Going forward, market momentum is expected to be earnings-driven and not valuation-driven. Investors are also awaiting key economic indicators, including US CPI inflation and unemployment data, which will shape global liquidity expectations and interest rate projections for 2026,” Nair said.

Also Read | 5 Wall Street Moguls Who Dismissed Bitcoin As A Fad — Guess What They’re Saying Now!

US markets

Wall Street’s major indexes edged higher in erratic trading on Monday, with some heavyweight tech stocks rebounding from last week’s rout, as investors braced for a barrage of economic data that could set the course for interest rates.

Traders also got more clarity on candidates for next year’s Federal Reserve chairmanship as US President Donald Trump narrowed his search to former Fed governor Kevin Warsh or National Economic Council director Kevin Hassett, according to a report.

European markets

European shares were higher on Monday, kicking off a week full of central bank decisions and lingering US economic data on a positive note, as investors returned to riskier assets after a sluggish end to last week.

The pan-European STOXX 600 rose 0.6% to 581.85, putting it less than 1% away from a record high. Major regional bourses also advanced, with Spain hitting an intraday record high.

Tech View

The index faced resistance near 26,050 before closing slightly lower, said Rupak De, senior technical analyst at LKP Securities, adding that on the hourly chart, the index faced resistance on a falling trendline.

“The hourly RSI has seen a bearish crossover and is trending lower, indicating bearishness in the market. Overall, the index is likely to remain range-bound between 25,900 and 26,100. A decisive move outside this range could trigger a directional move,” said Dee.

Also Read | Warren Buffett’s biggest investment isn’t Apple, BofA or Coca-Cola — it’s a stock hidden in plain sight

Most active stocks in terms of turnover

Canes Technology (Rs 2,295 crore), Interglobe Aviation (Rs 1,992 crore), Transformers and Rectifiers (Rs 1,601 crore), Vodafone Idea (Rs 1,358 crore), Hindustan Zinc (Rs 1,316 crore), BSE (Rs 1,057 crore), HDFC and HDFC (Rs 1,057 crore). Crore) was the highest. Active stocks on BSE 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: 117.29 crore), Transformers & Rectifiers (traded shares: 5.29 crore), IDFC First Bank (traded shares: 4.57 crore), Segility India (traded shares: 4.43 crore), GMR Airports (traded shares: 4.28 crore), YEST2 crore shares: 4.28 crore) and Ola Electric Mobility (traded shares: 3.7 crore) was among the most actively traded stocks on the NSE in terms of volume.

Stocks show interest in buying

Shares of Praj Industries, Transformers & Rectifiers, Action Construction Equipment, Aether Energy, Aarti Industries, NBCC and Reliance Infrastructure witnessed strong buying interest from market participants.

Also Read | Tata Motors hits top gear on demerger after commercial vehicles debut. Here are 7 takeaways from the list

52 week high

Over 132 stocks touched their 52-week highs today while 150 stocks slipped to their 52-week lows. Among those touching their 52-week high were Hindustan Zinc and Muthoot Finance.

Selling pressure is seen in stocks

Stocks that saw significant selling pressure were PTC Industries, CCL Products, BSE, Aditya Birla Capital, Emcure Pharmaceuticals, Aditya Birla Retail and New India Assurance.

Sentiment Meter Neutral

Market sentiment was neutral. Out of 4,449 stocks traded on BSE on Monday, 2,098 stocks declined, 2,186 stocks gained, while 165 stocks remained unchanged.

Also Read | Ola Electric vs Aether Energy Shares: Which EV Bet Looks Stronger for Your Portfolio Right Now?

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