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

The domestic market witnessed sharp volatility on the monthly expiry day due to a weakening rupee and continued FII outflows. Caution prevailed as investors awaited clarity on a possible rate cut at the next FOMC meeting and progress on the Indo-US trade deal despite some signs of improvement.

Here’s how analysts read the pulse of the market:
Analysts said selling pressure appears to be limited near the 26,000 level, although the decline appears limited due to strong domestic fundamentals, including a solid earnings outlook for H2. PSU banks and real estate stocks were the best performers, supported by strong revival in home loan demand and growing market share for PSU banks.

US markets
The S&P 500 and Nasdaq fell on Thursday, as Nvidia shares tumbled on worries of intense competition in the AI ​​chip space, while investors digested mixed economic data delayed by the US government shutdown.

Shares of Alphabet rose 2.7% after reports that Facebook-parent Meta Platforms is in talks to use Google’s AI chips in its data centers from 2027 and lease chips from Google Cloud by next year.

Nvidia, which currently dominates the AI ​​chips sector, fell 6.7% to a two-month low, while Advanced Micro Devices fell 9%.

European stocks
European shares eased on Tuesday as investors remained cautious ahead of the release of US economic data, despite rising expectations of an interest rate cut in the world’s largest economy.

The pan-European STOXX 600 rose 0.89% to 567.91 points. Major regional markets were also lower, with Germany’s DAX and France’s up 0.97% and 0.93%, while the UK’s FTSE gained 0.81%.

Tech View
Technical readings suggest that the index may trade sideways for a mild bearish trend in the next two to four sessions, with a possible retracement towards the 20-day EMA at 58300-58400. Immediate support is seen at 58300, resistance remains at 59200, while positional support remains near 58000.”

Most active stocks in terms of turnover
HDFC Bank (Rs 2,487 crore), RIL (Rs 2,325 crore), ICICI Bank (Rs 1,667 crore), Bharti Airtel (Rs 1,534 crore), Infosys (Rs 1,242 crore), SBI (Rs 899 crore) and TCS (Rs 856 crore) were among the most active BSE stocks. 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 (Shares traded: 56.49 crore), JP Power (Shares traded: 14.8 crore), Yes Bank (Shares traded: 11.19 crore), Indiabulls Housing (Shares traded: 4.07 crore), SAIL (Shares traded: 3.78 crore), Suzlon (Shares traded: 3.78 crore), Suzlon (3.6 crore) shares. (Shares traded: 3.23 crore) was one of the most actively traded stocks in terms of volume on the NSE.

Stocks show interest in buying
Shares of Aditya Birla Capital, Federal Bank, AU SFB, Hero MotoCorp, SBI, Shriram Finance and M&M Financial witnessed strong buying interest from market participants.

Selling pressure is seen in stocks
Significant selling pressure was seen from Reliance Infra, Deepak Nitrite, Praj Industries, SJVN, Tata Motors PV, Suven Pharma and Trent.

Sentiment meter bearish
Market sentiment was bearish. Out of 4,330 stocks traded on BSE on Tuesday, 2,160 stocks declined, 2,026 stocks gained, while 144 stocks remained unchanged.