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

The Indian market closed in the red on Tuesday with significant losses in index heavyweights Reliance Industries, ICICI Bank and Zomato. The cautious fall in the market was exacerbated by a dip in investor sentiment, after US President Donald Trump announced trade tariffs on neighboring countries shortly after taking office.

The benchmark BSE Sensex fell 1235.08 points, or 1.60%, to close at 75,838.36, while the broader Nifty 50 index ended 320.10 points, or 1.37% lower, at 23,024.65.

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

Commenting on the day’s proceedings, Vinod Nair, head of research at Geojit Financial Services, said domestic markets experienced a significant decline today, with extreme volatility following Trump’s announcement of trade tariffs on neighboring countries on his inauguration day, leading to global Uncertainty increased. Markets

“The weak recovery in ongoing Q3 earnings, along with a falling INR, is likely to encourage further outflows from FIIs. Mid and small-cap stocks underperformed the major indices. The realty sector was the worst hit due to weak pre-result updates, while banks suffered due to rising asset quality stress. Additionally, the expectation of an interest rate hike by the BoJ is dampening market sentiment,” Nair added.

US markets

Wall Street’s major indexes rose on Tuesday as investors weighed President Donald Trump’s post-inauguration executive orders while awaiting his initial actions on trade policy. Although Trump did not unveil specific plans for universal tariffs and surcharges on major trading partners, he indicated that he was considering them. The duties on Canadian and Mexican goods will likely begin on February 1.

Investors remain wary of Trump’s tariff policies, which could trigger a global trade war and add to inflationary pressures. Meanwhile, Goldman Sachs cut its universal tariff forecast for the year to 25% from 40% forecast in December.

European stocks

European shares were lifted on Tuesday by gains in the healthcare and luxury sectors, but uncertainty over US President Donald Trump’s proposed tariff measures following his inauguration lifted gains.

The pan-European STOXX 600 rose 0.4% to close at 525.98 points – its highest level in three months. This marks its fifth consecutive day of gains, the longest winning streak it has seen in a month.

Tech View

The Nifty opened on a positive note on Tuesday but faced selling pressure near its 14-day EMA, which closed above the key support of 23,000 and below its consolidation range with a long bearish candlestick, said Vatsal Bhuva, technical analyst at LKP Securities.

The RSI, currently at 36 and in a bearish crossover, indicates a bearish trend, indicating room for further downside before entering the oversold zone and consolidating bearish dominance, Bhuva said.

“Selling pressure continues to limit the recovery, and follow-up moves will be key to confirm further losses. A close below 23,000 would push the index towards pre-election levels of 22,500 with immediate resistance at 23,300. A bullish strategy is recommended till Nifty closes above 23,500,” Bhuva added.

Most active stocks in terms of turnover

Zomato (Rs 6,722.54 crore), Dixon Technologies (Rs 3,376.06 crore), HDFC Bank (Rs 2,563.14 crore), ICICI Bank (Rs 2,477.02 crore), Reliance Industries Ltd (Rs 1,871.04 crore), Kalyans (Rs 1,871.04 crore) , Kalyan (R. 401 crore) Bharti Airtel (Rs 1,302.84 crore) was one of the most active stocks in terms of value 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

Vodafone Idea (Traded Share: 56.12 Crore), Zomato (Traded Share: 30.82 Crore), Yes Bank (Traded Share: 8.80 Crore), Easy Trip Planners (Traded Share: 4.20 Crore), Suzlon Energy (Traded Share: 3.39 Crore), NMDC (Traded Share: 3.27 Crore). crore) and Tata Steel (traded shares: 3.22 crore) was one of the most actively traded stocks in terms of volume on the NSE.

Stocks show interest in buying

Shares of Global Health, Century Plyboards (India), HPCL, Vinati Organics, Samman Capital, Awas Financiers and Apollo Hospitals Enterprise witnessed strong buying interest from market participants.

52 week high

Over 103 stocks touched their 52-week highs today while 67 stocks slipped to their 52-week lows. Among those hitting their 52-week high were Biocon Ltd.

Selling pressure is seen in stocks

Nugen Software Technologies, Dixon Technologies, Zomato, Keynes Technology India, MCX India, India Cements and Kalyan Jewelers India witnessed significant selling pressure.

Sentiment meter bearish

Market sentiment was bearish. Out of 4,088 stocks traded on BSE on Tuesday, 2,788 stocks declined, 1,187 stocks gained, while 113 stocks remained unchanged.

Also Read | Could Zomato’s shares fall further by 39% to Rs. Can it be as low as 130? Macquarie thinks so

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