Ahead of Market: 10 things that will decide stock market action on Tuesday

The Indian market ended in red on Monday, hurt by losses in heavyweight metal and IT stocks, on the back of weak global commodity prices and ahead of the U.S. Federal Reserve’s interest rate decision this week.

The benchmark BSE Sensex lost 384.55 points or 0.47% to settle at 81,748.57, while the broader Nifty 50 index closed at 24,668.25, lower by 100.05 points or 0.4%.

Here’s how analysts read the market pulse:

Commenting on the day’s action, Vinod Nair, Head of Research at Geojit Financial Services, said the national market traded in a range-bound manner while the realty sector outperformed in expectation of growing demand and a potential rate cut cycle in 2025.

“A rise in manufacturing and service PMI suggests a positive turnaround in H2FY25 earnings, which may limit further downgrades in FY25 earnings. Rising US 10-year bond yields and a strengthening dollar led investors to remain watchful of the upcoming US Fed policy and its commentary for 2025 rates,” Nair added.

US markets

Wall Street shares mostly advanced on Monday, anticipating a U.S. interest rate cut later this week, while global markets faced pressure from political turmoil in Europe and concerns about China’s weakening economy.Bitcoin surged to a record high of $106,493.43, buoyed by growing support for cryptocurrencies, including an endorsement from Donald Trump.

In New York, the tech-heavy Nasdaq and the S&P 500 gained in morning trading, while the Dow remained flat after a lackluster performance last week. Investors are focused on Wednesday’s Federal Reserve meeting, the last before Trump assumes office next month.

European stocks

European shares closed lower on Monday, bogged down by heavyweight luxury and energy shares after disappointing China data, while French stocks underperformed after a surprise ratings downgrade by Moody’s.

The pan-European STOXX 600 index closed 0.1% lower, trading near two-week lows, with autos the top sector decliner by percentage, down 2.8%.

China-exposed luxury firms such as LVMH were down over 1% after data showed China’s retail sales growth slowing.

Tech View

The Nifty remained range-bound during the session, trading within the bands of 24,600 and 24,800, said Rupak De, Senior Technical Analyst at LKP Securities.

“The sentiment remains positive for the short term as the index sustains above the critical moving average on the daily timeframe. On the higher end, the index may continue its upward movement towards 25,000 and beyond in the short term. On the lower end, crucial support is placed at 24,500,” De added.

Most active stocks in terms of turnover

Dixon Technologies (Rs 89.40 crore), Zomato (Rs 74.48 crore), Jubilant Life (Rs 62.97 crore), Reliance Industries (Rs 59.27 crore), HBL Power (Rs 56.96 crore), Suzlon Energy (Rs 54.11 crore) and Angel One (Rs 52.13 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: 17.38 crore), YES Bank (Traded shares: 7.12 crore), JP Power (Traded shares: 6.93 crore), Suzlon Energy (Traded shares: 5.67 crore), Easy Trip Planners (Traded shares: 5.67 crore), Zomato (Traded shares: 3.13 crore) and Manappuram Finance (Traded shares: 2.53 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of Sun Pharma Advanced Research, Five-Star Business Finance, Avanti Feeds, Oberoi Realty, New India Assurance, HUDCO and Kaynes Technology were among the stocks that witnessed strong buying interest from market participants.

52 Week high

Over 317 stocks hit their 52 week highs today while 22 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Oberoi Realty, Kaynes Technology, Dixon Technologies, 360 One Wam, Affle (India), Lloyds Metals & Energy and Paytm.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Angel One, Vijaya Diagnostic, Tata Teleservices, Deepak Fertilisers, Chalet Hotels, Eris Lifesciences and NALCO.

Sentiment meter favours bulls

The market sentiments were neutral. Out of the 4,240 stocks that traded on the BSE on Monday, 1,869 stocks witnessed declines, 2,276 saw advances, while 95 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 Economic Times)