Ahead of Market: 10 things that will decide stock market action on Tuesday – News Air Insight

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The Indian market ended higher on Monday, with the Sensex and Nifty snapping a five-session losing streak after a late-afternoon rebound, as investors took comfort from signs of renewed engagement between New Delhi and Washington on trade. Early losses narrowed sharply after the incoming U.S. ambassador to India said the two sides would begin discussions on trade issues on Jan. 13.

The BSE Sensex rose 301.93 points, or 0.36%, to finish at 83,878.17, while the NSE Nifty 50 gained 106.95 points, or 0.42%, ending the day at 25,790.25.

Here’s how analysts read the market pulse:

The Indian market rebounded from the day’s lows as investor sentiment improved following favorable remarks on trade deal by the U.S. Ambassador ahead of the next round of negotiations, said Vinod Nair, Head of Research at Geojit Investments, adding that this positive undertone provided a lift to overall market sentiment.

“The commodities segment outperformed, supported by strength in metals, which benefited from renewed buying interest during supply constraints. Value buying was also evident in consumer and banking stocks, as investors sought opportunities after recent corrections, supported by expectations of stronger Q3 earnings and improving demand. Additionally, precious metals maintained their upward momentum amid persistent geopolitical tensions,” said Nair.

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US markets

U.S. stocks slid on Monday after the ⁠Trump administration renewed its broadsides against the Federal Reserve, reigniting concerns over the central bank’s independence, while a proposed one-year cap on credit-card interest rates dragged on financial stocks.

The administration threatened to indict Fed Chair Jerome Powell over his Congressional testimony on a renovation project, a move Powell called a “pretext” to gain ‌more influence over interest ‌rates that President Donald Trump has pressed to cut sharply since taking office in January 2025.

Wall Street’s fear gauge, the Cboe Volatility index , touched its highest since December 18, while safe-haven gold hit a record high for the first time this year.

European Markets

Europe’s STOXX 600 share index stuck close to record highs as arms stocks set fresh peaks and as the Swiss franc – another classic safe-haven play – and the euro and ‌sterling all strengthened in the FX market.

Tech View

Strong buying near the day’s low led to a smart recovery in the market and on the daily chart, the Nifty has formed a piercing line pattern, suggesting the possibility of a bullish reversal after a few days of selling pressure, said , said Rupak De, Senior Technical Analyst at LKP Securities, adding that on the hourly chart, the RSI has moved out of the oversold zone, indicating early signs of recovery.

“However, this half session buying is not expected to change overall market sentiment. We would remain watchful, as the Nifty faces resistance in the 26000–26100 zone, where selling pressure may re-emerge. On the lower end, immediate and crucial support is placed at 25650,” said De.

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Most active stocks in terms of turnover

Hindustan Copper (Rs 2,805 crore), BSE (Rs 2,121 crore), HDFC Bank (Rs 1,974 crore), ICICI Bank (Rs 1,539 crore), IFCI (Rs 1,485 crore), RIL (Rs 1,306 crore) and Vodafone Idea (Rs 1,164 crore) were among the most active stocks on BSE in value terms. Higher activity in a counter in value terms can help identify the counters with highest trading turnovers in the day.

Most active stocks in volume terms

Vodafone Idea (Traded shares: 103.7 crore), IFCI (Traded shares: 27.3 crore), YES Bank (Traded shares: 11.37 crore), Ola Electric Mobility (Traded shares: 9.95 crore), Suzlon Energy (Traded shares: 6.64 crore), Indian Energy Exchange (Traded shares: 6 crore) and Hindustan Copper (Traded shares: 5.22 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of IFCI, Force Motors, Hindustan Copper, BSE, Premier Energies,

Power Finance Corp and Hindustan Zinc were among the stocks that witnessed strong buying interest from market participants.

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52 Week high

Over 82 stocks hit their 52-week highs today while 532 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Phoenix Mills and Alkem Labs.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Tejas Networks, City Union Bank, GE Vernova T&D India, Signatureglobal India, Reliance Infrastructure, Maharashtra Scooter and Cohance Lifesciences.

Sentiment meter bearish

The market sentiments were bearish. Out of the 4,485 stocks that traded on the BSE on Friday, 2,837 stocks witnessed declines, 1,468 saw advances, while 180 stocks remained unchanged.

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



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