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

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The Indian market closed lower on Tuesday, with the Sensex and Nifty extending their decline for a second straight session, as persistent foreign portfolio outflows and a weakening rupee kept investors on edge. Lingering uncertainty over a potential U.S. trade deal added to the cautious mood on Dalal Street.

The S&P BSE Sensex fell 533 points, or 0.63%, to close at 84,679.86, while the NSE Nifty 50 declined 167 points, or 0.64%, settling at 25,860.10.

Here’s how analysts read the market pulse:

The continued INR weakness to fresh record lows, driven by persistent FII outflows and subdued global sentiments, dragged domestic markets into negative territory, said Vinod Nair, Head of Research at Geojit Investments, adding that smallcaps and midcaps lagged large caps, with IT, metals, banking, and realty leading losses, while consumption stocks offered limited support. “Volatility is expected to remain elevated amid currency fluctuations and uncertainty over foreign inflows. Progress on the US–India trade deal and rupee stabilisation will be critical, while softer commodity prices and improving earnings visibility provide a constructive medium-term backdrop,” said Nair.

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US markets

Wall Street stocks were little changed early Tuesday as markets absorbed US data pointing to a slower employment market, while Ford advanced despite announcing a $19.5 billion cost hit.

The US unemployment rate climbed to 4.6 percent in November from 4.4 percent in September. The US economy lost 105,000 jobs in October but gained 64,000 in November.

European Markets

European shares were muted on Tuesday, as gains in heavyweight financials and healthcare stocks were dampened by sharp declines in defence and technology stocks, while investors turned cautious ahead of crucial U.S. jobs data.

The pan-European STOXX 600 was up 0.2% at 583.39, as of 0912 GMT, after marking its biggest one-day gain in close to three weeks on Monday.

Major regional bourses were broadly higher with the ones in Spain and France up 0.3% each.

Tech View

The day favored the bears as the Nifty remained below the key 200 SMA on the hourly chart throughout the session, said Rupak De, Senior Technical Analyst at LKP Securities, adding that the index failed to retest the morning high, indicating complete control by the bears.

“On the downside, the support at 25,870 was breached, intensifying bearish sentiment in the market. In the short term, the index may drift lower towards 25,700 and lower. On the upside, the 25,950–26,000 zone is likely to act as a crucial resistance in the near term,” said De.

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Most active stocks in terms of turnover

HDFC Bank (Rs 1,994 crore), Vedanta (Rs 1,908 crore), RIL (Rs 1,812 crore), ICICI Bank (Rs 1,685 crore), Eternal (Rs 1,682 crore), Axis Bank (Rs 1,423 crore) and BSE (Rs 1,363 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: 71.28 crore), Tata Teleservices (Traded shares: 13.34 crore), Ola Electric Mobility (Traded shares: 7.19 crore), Eternal (Traded shares: 5.86 crore), YES Bank (Traded shares: 5.83 crore), Reliance Power (Traded shares: 3.94 crore) and Vedanta (Traded shares: 3.4 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of Kirloskar Oil, Tata Teleservices, Reliance Infrastructure, Triveni Engineering & Industries, Leela Palaces Hotels & Resorts, The Fertilisers and Chemicals Travancore and LT Foods were among the stocks that witnessed strong buying interest from market participants.

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52 Week high

Over 103 stocks hit their 52-week highs today while 139 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Vedanta and Tata Motors CV.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Ola Electric Mobility, Policy Bazaar, Transformers & Rectifiers, Axis Bank, Eternal, Swiggy and Aavas Financiers.

Sentiment meter bearish

The market sentiments were bearish. Out of the 4,335 stocks that traded on the BSE on Tuesday, 2,523 stocks witnessed declines, 1,654 saw advances, while 158 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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