Ahead of Market: 10 things that will decide stock market action on Thursday
At the end of the session, the BSE Sensex had trimmed losses to end down 271 points, or 0.33%, at 81,909.63. The Nifty 50 fell 75 points, or 0.30%, to settle at 25,157.50.
Here’s how analysts read the market pulse:
Domestic markets were gripped by volatility as global risk factors dampened sentiment, said Vinod Nair, Head of Research at Geojit Investments, adding that value buying towards the close helped the market recover some early losses.
“In this challenging environment, tepid earnings from the banking and IT sectors are adding to the overall pressure on equities. The weakening INR and uncertainties surrounding trade ties may prolong this volatility. Nevertheless, the ongoing earnings season could present selective accumulation opportunities as the next session is expected to be better-off led by the resilient domestic demand,” said Nair.
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US markets
US stocks mostly steadied Wednesday as US President Donald Trump doubled down on his demands for “immediate negotiations” to take control of Greenland in a much-anticipated speech at Davos, though he did say he would not use force.
Markets had tumbled earlier this week after Trump threatened tariffs up to 25 percent on several European countries — including France, Germany, Britain and Denmark — in response to their opposition to his plans to take Greenland.Trump’s threats have sparked warnings of retaliation at the World Economic Forum meeting in Davos, with European Union chief Ursula von der Leyen saying that the 27-nation bloc would be “unflinching” in its response.
In his Davos speech, Trump touted the strength of the US economy and stressed what he said are the security imperatives for having control of Greenland.
European Markets
Europe’s STOXX 600 index was down 0.7%. London’s blue-chip FTSE 100 was flat. The STOXX is laden with export-focussed stocks, such as defence, pharma and tech, that have come under pressure as the risks of additional U.S. tariffs have increased.
The European Union will convene an emergency summit in Brussels on Thursday to discuss the matter, with the long-standing U.S.-EU alliance at risk.
The ‘sell America’ trade was the driving force behind major market moves overnight, as investors looked to reduce exposure to the U.S., seen by many as an unreliable partner pursuing self-defeating policies
Tech View
The Nifty has fallen below the 200DMA on an intraday basis for the first time in many weeks, said Rupak De, Senior Technical Analyst at LKP Securities, adding that it usually shakes the market when the 200DMA is challenged, and it is not going to be just black and white.
“Over the next few days, the index may remain highly volatile. On the lower end, support is placed at 25,125. A decisive fall below 25,125 could trigger further panic in the market. On the higher end, resistance on a closing basis is placed at 25,200.”
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Most active stocks in terms of turnover
HDFC Bank (Rs 3,030 crore), ICICI Bank (Rs 2,945 crore), CreditAccess Grameen (Rs 2,699 crore), RIL (Rs 2,428 crore), Hindustan Copper (Rs 2,029 crore), Hindustan Zinc (Rs 2,010 crore) and Eternal (Rs 2,000 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: 116.25 crore), Ola Electric Mobility (Traded shares: 14.79 crore), YES Bank (Traded shares: 13.37 crore), Suzlon Energy (Traded shares: 7.8 crore), Eternal (Traded shares: 7.17 crore), MRPL (Traded shares: 6.6 crore) and Reliance Power (Traded shares: 5.8 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Shares of MRPL, CreditAccess Grameen, IndiaMART Intermesh, KPR Mill, Eternal, Hindustan Copper and ITC Hotels were among the stocks that witnessed strong buying interest from market participants.
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52 Week high
Over 59 stocks hit their 52-week highs today while 916 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Hindustan Zinc and Muthoot Finance.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Kalyan Jewellers India, SRF, Authum Investment, Tata Communications, Tata Chemicals, Cyient and Paytm.
Sentiment meter bearish
The market sentiments were bearish. Out of the 4,405 stocks that traded on the BSE on Wednesday, 2,968 stocks witnessed declines, 1,317 saw advances, while 120 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)
