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

The Indian market closed little changed on Tuesday, with the Sensex and Nifty ending flat as a pullback in IT shares ended a two-session rally. The market also came under pressure as foreign investors turned net sellers and investors found few fresh catalysts heading into the year-end.

The Sensex slipped 42 points, or 0.05%, to close at 85,524.84, while the Nifty 50 edged up 5 points, or 0.02%, to finish at 26,177.15.

Here's how analysts read the market pulse:

The domestic market traded in a narrow range and ended flat amid mixed global cues, said Vinod Nair, Head of Research at Geojit Investments, adding that selling pressure persisted across most sectors, though financials and FMCG offered marginal support.

"Going forward, investors are positioning for the next earnings season and monitoring evolving Fed policy expectations, as rate‑cut probabilities are slowly inching up for the January meeting. While an improving domestic demand outlook provides underlying support, uncertainty around global trade negotiations and the trajectory of the rupee will continue to influence sentiment," said Nair.

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US markets

Wall Street's main indexes were little changed in choppy ⁠trading on Tuesday, pausing after three sessions of gains as Treasury yields climbed following stronger-than-expected economic data.

The U.S. economy grew faster than expected in the third quarter, driven by robust consumer spending. Early estimates showed gross domestic product increased at a 4.3% annualized rate last quarter, much above economists' ‌forecast for a ‌rise at 3.3% pace, according to Reuters poll.

The 10-year U.S. Treasury yield rose to a more than one-week high of 4.19%. The dollar also trimmed its losses.

European Markets

The pan-European STOXX 600 index briefly hit a record high on gains in the healthcare sector, after heavyweight Novo Nordisk secured U.S. approval of its weight-loss pill.

Tech View

The Nifty continues to move higher following a falling wedge breakout, indicating improving bullish sentiment in the short term, said Rupak De, Senior Technical Analyst at LKP Securities, adding that the RSI has delivered a downward consolidation breakout on the daily timeframe, signaling strong positive momentum in the market.

“The trend is likely to favor the bulls as long as the index remains above 25,900, making a buy-on-dips strategy favorable. On the higher end, 26,315 may act as immediate resistance, above which a further rally could unfold," said De.

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Most active stocks in terms of turnover

Jupiter Wagons (Rs 4,605 crore), HDFC Bank (Rs 1,783 crore), Shriram Finance (Rs 1,389 crore), Cholamandalam Investment & Finance (Rs 1,299 crore), ICICI Bank (Rs 1,240 crore), Vodafone Idea (Rs 1,209 crore) and RIL (Rs 1,181 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: 100.58 crore), Jupiter Wagons (Traded shares: 13.57 crore), Reliance Power (Traded shares: 8.12 crore), NMDC (Traded shares: 7.76 crore), Ola Electric Mobility (Traded shares: 7.12 crore), Ircon International (Traded shares: 5.76 crore) and Indian Railway Finance Corporation (Traded shares: 5.5 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of Jupiter Wagons, Ircon International, Godawari Power, IFCI, Cholamandalam Investment & Finance, Alok Industries and RailTel Corporation of India were among the stocks that witnessed strong buying interest from market participants.

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52 Week high

Over 107 stocks hit their 52-week highs today while 85 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Vodafone Idea and Maruti Suzuki.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Coforge, Latent View Analytics, Chennai Petroleum Corporation, Kajaria Ceramics, Aegis Vopak Terminals, Schaeffler India and Neuland Laboratories.

Sentiment meter bullish

The market sentiments were bullish. Out of the 4,365 stocks that traded on the BSE on Tuesday, 1,892 stocks witnessed declines, 2,292 saw advances, while 181 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)