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

Markets hit new record highs on Friday — 26,325.80 on the Nifty and 86,159 on the Sensex — before giving up gains to close marginally lower, as weakness in pharma and financial stocks outweighed support from auto and IT. The Nifty settled at 26,175.75, down 27.20 points (0.10%), while the Sensex slipped 64.77 points (0.08%) to 85,641.90. The late pullback came despite India’s strong Q2 GDP growth of 8.2%.

Meanwhile, the volatility gauge India VIX ended flat at 11.63, signaling a trade in a narrow range.

Here’s how analysts read the market pulse:

Commenting on the day’s action, Ajit Mishra, Senior Vice President – Research at Religare Broking said that markets stayed in consolidation mode and ended almost unchanged, pausing near record-high territory.

“On the benchmark front, the Nifty 50 opened firmly around 26,325—marking a fresh lifetime high amid buoyant sentiment—but experienced intraday volatility before closing near 26,175, down 0.10%. Sectoral trends were mixed, with auto, metal and IT edging higher, while realty and pharma closed in the red. Broader indices moved largely in line with the benchmark, though market breadth indicated underlying weakness,” Mishra said.

US markets

Wall Street’s main indexes opened lower on Monday as investors stood on the sidelines ahead of fresh economic data and a closely watched speech from Federal Reserve Chair Jerome Powell to gauge the central bank’s policy decision later this month.

While Dow 30 was trading at 47,512.10 in the initial trade, down 204.35 points or 0.43%, S&P 500 hovered around 6,812.65, 36.44 or 0.53% lower. Nasdaq Composite was the worst hit, falling 0.75% or 175.29 to 0.75%.

European Markets

European markets were a sea of red, with UK’s FTSE 100 was trading with minor cuts (0.05%) while Stoxx 600, French CAC 40, Germany’s DAX and Spain’s IBEX were down up to 1.2% around this time.

Tech View

Nilesh Jain, Head – Equity Technical and Derivatives Research Analyst at Centrum Broking attributed the negative closing to profit-booking that took over at higher levels. Decoding the charts, he said that Nifty has formed a bearish candle on the daily chart, suggesting a pause in the ongoing trend and the potential for some consolidation before the next upward move.

“Immediate support lies at 26,120, followed by 26,000, while a decisive break above 26,300 could pave the way for further gains toward 26,450. Chasing the index at elevated levels is not advisable, as the current risk-reward setup is unfavourable. It would be more prudent to wait for a meaningful pullback before considering fresh positions,” Jain said.

Most active stocks in terms of turnover

Physicswallah (Rs 245 crore), Lenskart Solutions (Rs 146 crore), ZF Commercial Vehicle Control Systems India (Rs 137 crore), Sudeep Pharma (Rs 96 crore), NSDL (Rs 92 crore), Tata Motor Passenger Vehicles (Rs 89 crore), and Tata Chemicals (Rs 84 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: 6.03 crore), Yes Bank (Traded shares: 86.86 lakh), Rico Auto Industries (Traded shares: 57.94 lakh), SpiceJet (Traded shares: 49.53 lakh), Sigachi (Traded shares: 46.03 lakh), Reliance Power (Traded shares: 32.66 lakh) and JM Financial (Traded shares: 28.61 lakh crore) were among the most actively traded stocks in volume terms on BSE.

Stocks showing buying interest

Wockhardt Pharma, ZF Commercial, JM Financial, V2 Retail, IEX, Onesource Specialty Pharma, Eicher Motors and Lenskart were among the stocks that witnessed strong buying interest from market participants.

Also Read: Gainers & Losers: Lenskart Solutions and Wockhardt among 6 stocks that were in focus on Monday – here’s why

52 Week high

Over 150 stocks hit their 52 week highs today while 197 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Aditya Birla Capital, Adani Ports and Special Economic Zone (APSEZ), AIA Engineering, Canara Bank, Federal Bank, GMR Airports, Hero MotoCorp, Laurus Labs and Samvardhana Motherson International.

Stocks seeing selling pressure

Among the large cap names were Max Healthcare, InterGlobe Aviation and Bajaj Finance. Other stocks which witnessed significant selling pressure were Whirlpool of India, Welspun Living, Neuland Lab, KPR Mill, Latent View Analytics, KSB, Glaxosmithkline and GE Vernova T&D India.

Sentiment meter favours bears

Action in heavyweights like HDFC Bank, Bajaj Finance and Bharti Airtel dragged the markets the most, ensuring a negative closing. The breadth also stayed negative in broader markets. Out of the 4,455 stocks that traded on the BSE on December 1, Monday, 1,768 stocks witnessed advances, 2,484 saw declines while 203 stocks remained unchanged.

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