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

The Indian market ended in deep red on Tuesday, as investors tread cautiously ahead of the US Federal Reserve’s interest rate decision to look for clues about the future rate cut path. Selling in heavyweight financials such as HDFC Bank and ICICI Bank weighed on the benchmark, with declines in blue-chip stocks such as Reliance Industries and Bharti Airtel.

The benchmark BSE Sensex fell 1,064.12 points, or 1.30%, to settle at 80,684.45, while the broader Nifty 50 index ended 332.25 points, or 1.35% lower, at 24,336.00.

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

Broad pessimism prevails across sectors ahead of key policy decisions by the US Fed, BoJ and BoE, said Vinod Nair, head of research at Geojit Financial Services. .

“While the market has already factored in a 25 bps cut from the US Fed, it remains alert for any hawkish signals. The BoJ and BoE are largely expected to maintain their current rates for the year. Also, the INR’s depreciation has hit an all-time low, and a record-high trade deficit adds to the pressure. FII outflows continue due to rising US bond yields and strengthening dollar, further contributing to the prevailing pessimism,” Nair added.

US markets

Wall Street stocks edged lower early Tuesday as investors awaited the Federal Reserve’s interest rate decision and reacted to stronger-than-expected US retail sales data. Retail sales rose 0.7% in November, beating a revised 0.5% increase in October and beating analysts’ expectations. .

The data comes as the Federal Reserve begins its two-day meeting, which is expected to result in interest rate cuts. However, given the economic policies of incoming President-elect Donald Trump, uncertainty remains about the likelihood of further rate cuts in 2025.

European stocks

Europe’s STOXX 600 fell to a two-week low on Tuesday, pressured by losses in energy and bank stocks, as investors awaited several major central bank decisions later in the week.

The pan-European STOXX 600 index ended 0.4% lower, its lowest closing level since Dec. 2.

The oil and gas index fell 1.3% to its lowest level in 17 months as crude prices fell after Chinese economic data renewed demand concerns.

European banks were another drag, down 1.8% with Spanish lenders such as Santander and Sabadell leading the losses. The broader Spanish benchmark fell 1.6%.

Tech View

Rupak De, senior technical analyst at LKP Securities, said the Nifty fell sharply following the formation of a Harami pattern on the daily timeframe, with the index dipping below the 21-EMA, indicating increased bearish bets in the market.

Furthermore, the indicator is in a bearish crossover, further supporting the negative sentiment. The short-term outlook remains bearish, with potential for a decline towards 24,200, where an initial round of support is expected. If Nifty does not break decisively below 24,200 then a meaningful recovery can be seen,” added Dee.

Most active stocks in terms of turnover

Mazagon Dock Shipbuilders (Rs 213.65 crore), Suzlon Energy (Rs 185.76 crore), Zomato (Rs 161.96 crore), Paytm (Rs 81.40 crore), Reliance Industries (Rs 79.86 crore), Dixon Technologies (Rs 17.6 crore) crore), Dixon Technologies (Rs 617 crore) to Rs 47.23 crore) was one of the most active stocks on the 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 (Shares traded: 25.24 crore), Suzlon Energy (Shares traded: 18.83 crore), Yes Bank (Shares traded: 14.89 crore), Zomato (Shares traded: 7.27 crore), JP Power (Shares traded: 3.81 crore), Tata Steel (Shares traded: 2.71 crore) and Piramal Pharma (traded shares: 2.68 crore) was one of the most actively traded stocks in terms of volume on the NSE.

Stocks show interest in buying

Shares of Jyoti CNC Automation, Ques Corp, Mazagon Dock Shipbuilders, Five-Star Business Finance, Nugen Software Technologies, Suzlon Energy and DOMS Industries witnessed strong buying interest from market participants.

52 week high

Over 278 stocks touched their 52-week highs today while 28 stocks slipped to their 52-week lows. Among those reaching their 52-week highs were Jyoti CNC Automation, Oberoi Realty, Max Healthcare, Cannes Technology, Indian Hotels, Coforge and 360 One Wem.

Selling pressure is seen in stocks

Shriram Finance, Blue Star, Jyoti Labs, SBFC Finance, HFCL, Mahanagar Gas and L&T Finance witnessed significant selling pressure.

The sentiment meter favors the bulls

Market sentiment was bearish. Out of 4,107 stocks traded on BSE on Tuesday, 2,502 stocks declined, 1,521 stocks gained, while 84 stocks remained unchanged.

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