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

The Indian market ended 2024 with an annualized return of around 8%, with the Sensex and Nifty maintaining their winning streak for the ninth year in a row. On Tuesday–the last trading day of the year, the Sensex slipped 109 points, while the Nifty closed largely unchanged amid continued foreign fund inflows. Selling in heavyweight IT stocks weighed on the benchmark.

The benchmark BSE Sensex fell 109.12 points, or 0.14%, to close at 78,139.01, while the broader Nifty 50 index ended down 0.10 points at 23,644.80.

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 final day of the year ended with a marginal loss despite a recovery from intraday lows, adding that consolidation pressure amid a negative global was dragging domestic momentum. Signals and ongoing concerns about a strengthening dollar index and US bond yields.

“The losses were mainly in IT and realty stocks, while gains were seen in other sectors. FII outflows and rising crude prices are putting pressure on the rupee and dampening sentiment. However, market focus is expected to return to domestic Q3 results for potential growth and earnings recovery and insights into the Union Budget, which offer a short to medium-term perspective amid global uncertainties,” Nair added.

US markets

Wall Street’s major indexes opened higher in the final session of 2024, capping a two-year bull run driven by the post-pandemic recovery, easing borrowing costs and the AI ​​boom.

The S&P 500, Dow, and Nasdaq are near record highs, set for continued annual gains. A 100-basis point Fed rate cut and rising tech stocks, fueled by AI’s potential to boost corporate profits, propelled markets. This year, the tech, communication services and consumer discretionary sectors grew by over 30%.

Tech View

The Nifty recovered smartly during the day after a weak start, said Rupak De, senior technical analyst at LKP Securities, adding that the technical setup remained intact as the index failed to break above any significant moving averages.

“Despite this, sentiment was seen to improve throughout the session. On the highs, if the Nifty moves above 23,700, it may move towards 23,900-24,000. At the lower end, support is placed at 23,550,” Day added.

Most active stocks in terms of turnover

ITI Ltd (Rs 3,248.41 crore), Rites (Rs 1,715.03 crore), HDFC Bank (Rs 1,251.55 crore), ICICI Bank (Rs 1,083.80 crore), Mazagon Dock Ship (Rs 1,079.73 crore), Avanti Feeds (Rs 98.8 crore). 4 crores) and Zo. Rs 888.69 crore) was one of 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 share: 43.22 crore), Easy Trip Planners (traded share: 27.56 crore), ITI Limited (traded share: 8.28 crore), Yes Bank (traded share: 6.03 crore), Rights (Rs. 5.84 crore), IRFC (traded Rs. Shares: 4.13 Crore) and NMDC (Traded Shares: 3.81 Crore) It was one of the most actively traded stocks on the NSE in terms of volume.

Stocks show interest in buying

Shares of Avanti Feeds, Crisil, Wrights, Godfrey Phillips, Redington, NLC India and Chennai Petro witnessed strong buying interest from market participants.

52 week high

Over 127 stocks touched their 52-week highs today while 102 stocks slipped to their 52-week lows. These include Crisil, Lorus Labs, ITI Limited, Muthoot Finance, Lupine, Lloyds Metals and Radico Khaitan.

Selling pressure is seen in stocks

Easy Trip Planners, Adani Wilmar, Bajaj Holdings, Bharti Hexacom, Five-Star Business Finance, Adani Green Energy and Godrej Industries witnessed significant selling pressure.

The sentiment meter favors the bulls

Market sentiment was bullish. Out of 4,079 stocks traded on BSE on Tuesday, 1,647 stocks declined, 2,321 stocks gained, while 111 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)