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

The Indian market ended higher on Tuesday as the Sensex and Nifty pared early losses, buoyed by optimism over a possible trade breakthrough with Washington and the reopening of the US government. Gains were capped by weakness in financial stocks after Bajaj Finance cut its asset growth forecast and volatility intensified ahead of the Nifty 50’s weekly derivatives close.

The S&P BSE Sensex rose 0.4% to close at 83,871.32, up 335.97 points, while the NSE Nifty 50 rose 0.47% or 120.60 points to settle at 25,694.95.

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

The domestic market opened on a subdued note amid concerns over the possible impact of the Delhi blast but recovered smartly to close at intraday highs, supported by global cues as the US Senate passed a bill to end the longest-ever federal shutdown, said Vinod Nair, head of research at Geojit Investments, as its expected results season 2019 approaches. Note, driven by better-than-expected performance by the broader market.

“The bullishness was sustained by gains in the IT, auto, metal and FMCG sectors. Investors now await the next domestic inflation data, a sustained decline in food prices – with expectations of continued moderation due to prospects of further policy easing by the RBI. Looking ahead, earnings are expected to restore at multiple domestic levels. Tailwinds, however, will depend heavily on the successful finalization of the trade deal with the US,” Nair said.

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US markets

The S&P 500 and Nasdaq fell on Tuesday as concerns about elevated technology valuations resurfaced, while markets closely watched progress toward an end to the longest government shutdown in U.S. history.

Dampening sentiment, ADP’s weekly update of preliminary payrolls figures showed private employers lost an average of 11,250 jobs per week for the four weeks ended Oct. 25.

European markets

The STOXX 600 was up 0.6% on Tuesday, edging out 0.2-0.3% declines in the S&P 500 and Nasdaq futures. The FTSE 100 rose 0.8%.

Tech View

The Nifty remained volatile during the day before closing with significant gains, said Rupak De, senior technical analyst at LKP Securities, adding that Tuesday’s strong move set the index back above the 21EMA on the daily timeframe.

“RSI is on the verge of entering a bullish crossover. Also, 21EMA and 50EMA are in positive crossover. Short-term trend looks good for a rally towards higher levels, possibly reaching 26,000. Support will now be placed at 25,600. Going forward, long stop, Ni50 stop at 50,60. Targeting 26,000,” said Dee. was

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Most active stocks in terms of turnover

Bharti Airtel (Rs 3,029 crore), Bajaj Finance (Rs 2,396 crore), Infosys (Rs 2,087 crore), Vodafone Idea (Rs 1,976 crore), Sirma SGS Technology (Rs 1,634 crore), HBL Power (Rs 1,413 crore) and HEG (Rs 138 crore) were the most 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: 196.2 crore), Reliance Power (traded shares: 6.17 crore), Yes Bank (traded shares: 5.36 crore), Suzlon Energy (traded shares: 5.04 crore), Adani Power (traded shares: 4.23 crore), BHEL 2 crore and BHEL 2 crore shares. (Shares traded: 3.66 crore) was one of the most actively traded stocks in terms of volume on the NSE.

Stocks show interest in buying

Shares of Poly Medicare, Vodafone Idea, Latent View Analytics, Hind Copper, KEC International, Graphite India and Craftsman Automation were among the stocks that saw strong buying interest from market participants.

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52 week high

Over 110 stocks touched their 52-week highs today while 172 stocks slipped to their 52-week lows. Among those hitting their 52-week highs were Nalco and Mahindra & Mahindra.

Socks sales are seeing pressure

Transformers & Rectifiers, HBL Power, Bajaj Finance, Bajaj Finserv, Newland Labs, Olectra Greentech and CE Info Systems saw significant selling pressure.

Sentiment meter bearish

Market sentiment was bearish. Out of 4,363 stocks traded on BSE on Tuesday, 2,245 stocks declined, 1,936 stocks gained, while 182 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 The Economic Times)