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

Indian markets ended higher on Monday, with the Nifty climbing to an eight-month high, while the banking index touched a record intraday peak, buoyed by the Reserve Bank of India’s surprise policy easing, upbeat U.S. jobs data, and progress in U.S.-India trade talks.

The BSE Sensex jumped 256.22 points, or 0.31%, to 82,445.21, while the NSE Nifty rose 100.15 points, or 0.40%, to close at 25,103.20.

Here's how analysts read the market pulse:

Financial stocks extended their rally in Indian markets, driven by the RBI’s supportive aggressive policy of rate and CRR cut, said Vinod Nair, Head of Research, Geojit Investments, adding that "these actions have boosted investor confidence and are expected to enhance liquidity in the near to medium term, especially in midcaps."

"The positive U.S. jobs data and renewed optimism over U.S.-China trade talks lifted global sentiment. Domestically even large caps expressed renewed momentum led by FIIs inflows," said Nair.

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US markets

U.S. stocks are nearly stuck in place on Monday as the world’s two largest economies begin talks on trade that could help avoid a recession.

Officials from the United States and China are meeting in London to talk about a range of different disputes that are separating them. The hope is that they can eventually reach a deal that will lower each’s punishing level of tariffs against the other, which are currently on pause, so that the flow of everything from tiny tech gadgets to enormous machinery can continue.

One of the market’s sharpest moves came from Warner Bros. Discovery, which jumped 11.8% after saying it would split into two companies. One will get Warner Bros. Television, HBO Max and other studio brands, while the other will hold onto CNN, TNT Sports and other entertainment, sports and news television brands around the world, along with some digital products.

European stocks

European shares eased in cautious trade on Monday as investors avoided making big bets pending the outcome of Sino-U.S. trade talks in London.

The pan-European STOXX 600 ended slightly lower at 553.24 points, after four straight sessions of gains, its longest consecutive winning streak in three weeks. All other major bourses closed lower. Trading was thin as markets in Switzerland, Denmark and Norway were among those closed due to the Whit Monday holiday.

The utilities sector was among the biggest losers. Often tracked as a bond proxy - a slide in Eurozone bonds pressured the index.

Tech View

The Nifty has finally broken out of its prolonged consolidation on the daily timeframe and the market sentiment appears positive, with the index sustaining well above the crucial 50-day moving average (50DMA), said Rupak De, Senior Technical Analyst at LKP Securities, adding that “a golden crossover on the daily chart has been a support the bullish sentiment.”

“Following the breakout, a rise towards 25,350 looks likely. A decisive move above this level could trigger a rally towards 25,700. On the downside, support is placed at 24,850; a breach below this level may lead to a shift in sentiment," said De.

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Most active stocks in terms of turnover

Bajaj Finance (Rs 2,262 crore), BSE (Rs 2,181 crore), MCX India (Rs 1,981 crore), Capri Global Capital (Rs 1,639 crore), Cochin Shipyard (Rs 1,620 crore), ICICI Bank (Rs 1,589 crore) and HDFC Bank (Rs 1,308 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: 63.09 crore), JP Power (Traded shares: 19.50 crore), Reliance Power (Traded shares: 18.79 crore), Suzlon Energy (Traded shares: 11.09 crore), Capri Global Capital (Traded shares: 9.43 crore), YES Bank (Traded shares: 7.94 crore) and IDFC First Bank (Traded shares: 6.08 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of Capri Global Capital, Westlife Foodworld, Five-Star Business Finance, JP Power, JM Financial, IIFL Finance and Bandhan Bank were among the stocks that witnessed strong buying interest from market participants.

52 Week high

Over 178 stocks hit their 52 week highs today while 43 stocks slipped to their 52-week lows. Among the stocks which hit a 52-week high was Bajaj Finance.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Cochin Shipyard, Data Patterns (India), BLS International Services, Zen Technologies, Suven Pharma, Swiggy and Neuland Laboratories.

Sentiment meter bullish

The market sentiments were bullish. Out of the 4,335 stocks that traded on the BSE on Monday, 1,464 stocks witnessed declines, 2,750 saw advances, while 121 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)