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

Indian markets carried their Friday momentum on Monday but today’s gains were on the back of a resounding win by the Bharatiya Janata Party (BJP) led Mahayuti alliance in Maharashtra assembly elections. It was a broad based rally panning all sectors but bank stocks stood out. While the benchmark S&P BSE Sensex settled at 80,109.85, up by 992.74 points or 1.25%, the broader Nifty closed at 24,221.90, higher by 314.65 points or 1.32%.

Here’s how analysts read the market pulse:

Commenting on the day’s action, Rupak De, Senior Technical Analyst, LKP Securities said Nifty traded sideways throughout the day despite opening with a gap-up. The index has moved above the 21 EMA, indicating improving sentiment, he added.

“The RSI is in a bullish crossover and trending upward. The sentiment is expected to remain positive in the short term, with buying on dips likely to favor traders. On the higher side, 24,500 is expected to act as a crucial resistance; a decisive move above this level could trigger a further rally. Support on the lower side is placed at 23,950–24,000,” De said.

US markets

The S&P 500 and Dow hit intraday record highs on Monday, while the Nasdaq also rose, driven by optimism over Scott Bessent’s nomination as Treasury Secretary in Trump’s administration. By 9:50 a.m., the Dow gained 459.25 points (1.03%) to 44,753.77, the S&P 500 rose 43.12 points (0.72%) to 6,012.50, and the Nasdaq added 153.88 points (0.81%) to 19,157.53. The Russell 2000 index surged to a record 2,458.99, rising 2.1% Monday on expectations of Trump-era tax cuts and lower borrowing costs. It’s up over 8% since the Nov. 5 U.S. presidential election, surpassing its previous three-year high.

Treasury yields surged on expectations of inflationary pressures from Trump’s pro-economy policies, potentially slowing Fed monetary easing.

European stocks

Europe’s main stock index slipped back from a two-week high as gains were limited by a slump in energy stocks, while market sentiment remained optimistic following the nomination of the new U.S. Treasury Secretary and encouraging remarks from the ECB’s chief economist regarding monetary policy easing.

The pan-European STOXX 600 edged up 0.1% at 509.18 points. It hit a two-week high earlier in the session and logged three consecutive sessions of gains.

Energy stocks dropped 1% and were the biggest drag on the index, as oil prices fell by 2.7% on reports that Israel and Lebanon had agreed to the terms of a deal to end the Israel-Hezbollah conflict.

Tech View

While a positive sentiment followed after the Maharashtra state election results in the morning trade, profit booking and consolidation in the later sessions led to a close slightly below the opening, Rajesh Bhosale, Technical Analyst at Angel One said.

He sees a descending trend-line breakout on the daily chart which warrants a cautious undertone. “The appearance of a small-bodied candle at higher levels reflects hesitation and uncertainty among participants. On the upside, stiff resistance lies in the 24,400–24,500 zone, aligned with the 89 and 50 DEMA and the 38.2% retracement of the entire fall from all-time highs. Overcoming this hurdle remains a daunting task and only a decisive breach of these levels could pave the way for an extended up move,” Bhosale said.

“Technically, the bullish gap created today also reflects on the weekly chart and holds significance as long as the 23,900–24,000 range is defended. A breach below this level could nullify the positive impact of the event, potentially resuming the downside trend,” he warned as he advised traders to monitor the key levels and align their trades accordingly, avoiding complacency in their approach.

Most active stocks in terms of turnover

Protean eGoV Technologies (Rs 483.84 crore), HDFC Bank (Rs 220.05 crore), SBI (Rs 136.10 crore), Adani Green Energy (Rs 132.64 crore), Adani Enterprises (Rs 129.57. crore), Reliance Industries (RIL, 124.67 crore), Adani Power (Rs 114.37 crore), Axis Bank (Rs 108.44 crore), ICICI Bank (Rs 96.52 crore) and Zomato (Rs 96.51 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: 6.07 crore), Srestha Finvest (Traded shares: 3.41 crore), GTL Infra (Traded shares: 1.19 crore), Yes Bank (Traded shares: 1.18 crore), SpiceJet (Traded shares: 71.31 lakh), Suzlon Energy (Traded shares: 55.27 lakh) and EaseMYTrade (Traded shares: 43.98 lakh) were among the most actively traded stocks in volume terms on BSE.

Stocks showing buying interest

Shares of ONGC, Bharat Electronics, Larsen & Toubro (L&T), Poly Medicure, Elgi Equipments, Gillette India, Triveni Turbine and Railtel Corporation of India were among the stocks that witnessed strong buying interest from market participants.

52 Week high

Over 206 stocks hit their 52 week highs today while 55 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Cigniti Technologies, Coforge, Coromandel International, Container Corporation, Doms Industries, Federal Bank, Fortis Health, Gillette, HCL Tech and HDFC Bank and Krishna Institute of Medical Science.

Stocks seeing selling pressure

Among the large cap names were JSW Steel, Tech Mahindra, Infosys and Maruti Suzuki. Other stocks which witnessed significant selling pressure were Adani Green Energy, Vijaya Diagnostics, CRISIL, Adani Energy Solutions, Adani Power and Aadhar Housing Finance.

Sentiment meter favours bulls

Action in heavyweights like HDFC Bank, Larsen & Toubro (L&T), ICICI Bank and Reliance Industries (RIL) helped markets shoot-up amid buying trends across sectors. The market sentiments were bullish. Out of the 4,214 stocks that traded on the BSE on Monday, 1,389 stocks witnessed declines, 2,675 saw advances while 150 stocks remained unchanged.

Also Read: Tech cos’ Q2FY25 results ahead of estimates. Infosys, Coforge among 9 brokerage buys

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

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