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

Sensex and Nifty closed higher on Friday on a stronger rupee and an improving global backdrop in India as investors braced for further interest rate cuts by the US Federal Reserve early next year.

The benchmark Sensex closed up 638 points, or 0.75%, at 85,567.48, while the Nifty 50 rose 206 points, or 0.79%, at 26,172.40.

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

Indian markets extended their year-end rally as expectations of further Fed easing in 2026 drove growth, supported by robust liquidity and global cues, with FIIs becoming net buyers, IT and metals reinforcing the positive tone with leading gains, said Vinod Nair, head of research at Geojit Investments.

“Gold hit a record high, rising global tensions including rate-cut expectations, strong central bank buying, continued ETF flows, and Ukraine’s strike on a Russian vessel. Investors now await Q3 GDP estimates for policy clarity, with consensus pointing to resilient growth. However, caution should be exercised on trade constraints. Geopolitical uncertainties and crude price volatility,” Nair said.

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US markets

US stocks started the holiday-shortened week on a positive note, as technology stocks rose higher on renewed enthusiasm over artificial intelligence, while investors awaited key economic data later this week.

A rally in tech stocks that started late last week on Micron Technology’s beat forecast and mild inflation report has left the S&P 500 and Dow about 1% off their record closing highs on Dec. 11.

European markets

European shares traded slightly lower on Monday as technology and commodity stocks fell elsewhere, as investors began the holiday-shortened week on a tepid note after Friday’s record close.

The pan-European STOXX 600 was down 0.1% at 586.86 at 0928 GMT. Major regional markets were lower, with London and France down 0.4 and 0.2% respectively.

The STOXX 600 rose more than 1% last week as US consumer price inflation fueled expectations of additional Federal Reserve rate cuts, while the European Central Bank kept policy rates on hold and took a more positive view of the euro zone economy.

Tech View

Rupak De, Senior Technical Analyst, LKP Securities, said the Nifty continued to move higher following a falling wedge breakout indicating improvement in bullish sentiment in the short term, adding that the RSI has given a downward consolidation breakout on the daily timeframe, indicating strong positive momentum in the market.

“The trend is likely to remain bullish as long as the index remains above 25,900, which favors a buy-on-dips strategy. At the higher end, 26,315 may act as an immediate resistance, above which further bullishness may unfold,” Dee said.

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Most active stocks in terms of turnover

Infosys (Rs 3,887 crore), Shriram Finance (Rs 2,982 crore), Jupiter Vegans (Rs 2,208 crore), Bharti Airtel (Rs 1,640 crore), RIL (Rs 1,601 crore), BSE (Rs 1,349 crore) and HDFC Bank (Rs 3 crore) were the most active B1 crore shares. 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

Vodafone Idea (traded shares: 104.26 crore), Ola Electric Mobility (traded shares: 14.23 crore), Reliance Power (traded shares: 8.79 crore), Jupiter Vegans (traded shares: 7.4 crore), Yes Bank (traded shares: 4 crore: 8 crore), and Suzron shares: 4.9 crore (traded shares: 8 crore). 8.79 crore) Shriram Finance (shares traded: 3.18 crore) was one of the most actively traded stocks on the NSE in terms of volume.

Stocks show interest in buying

Shares of Jupiter Wagons, Cochin Shipyard, Devyani International, Ramakrishna Forgings, Solar Industries India, GE Vernova T&D India and Mazagon Dock Ship witnessed strong buying interest from market participants.

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52 week high

Over 143 stocks touched their 52-week highs today while 129 stocks slipped to their 52-week lows. Tata Motors CV and Maruti Suzuki were among those hitting their 52-week high.

Selling pressure is seen in stocks

Reliance Power, Hexaware Technologies, Siemens Energy India, Cholamandalam Investment and Finance Company, Dixon Technologies (India), Home First Finance Company India and Motherson Sumi Wiring India saw significant selling pressure.

Sentiment meter bullish

Market sentiment was bullish. Out of 4,501 stocks traded on BSE on Monday, 1,515 stocks declined, 2,794 stocks gained, while 192 stocks remained unchanged.

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