Here’s how analysts read the market pulse:
Commenting on the day’s action, Rupak De, Senior Technical Analyst at LKP Securities called the day’s trade as choppy as he decoded the Nifty chart highlighting the formation of a bullish Harami Cross pattern. “A bullish Harami pattern, especially after a significant correction, often signals a potential short-term recovery. The Nifty appears positive for the short term as long as it remains above 23,135. On the upside, it could move towards 23,400, and a decisive move above 23,400 may lead to higher levels,” De said.
US markets
Wall Street’s main indexes fell on Tuesday as investors turned their attention to upcoming inflation data and quarterly earnings reports, which are expected to provide insights into the health of the U.S. economy.
Stocks received an initial boost after a Labor Department report showed the producer price index rose moderately in December 2024, but this did little to change perceptions about the Federal Reserve’s likely monetary policy path this year.
Traders expect the Fed will deliver 29.4 basis points worth of rate cuts by the end of 2025, according to data compiled by LSEG – lower than the 50-bps reduction the central bank forecast for the year.
Also adding to investor unease, the yield on the benchmark 10-year Treasury note stood at 4.78%, close to its 14-month high.The focus will now be on the consumer price index figures, due on Wednesday, along with quarterly earnings from big banks, which are expected to post stronger earnings, fueled by robust dealmaking and trading. An index tracking banks rose 0.4%.
European stocks
European shares wrapped up Tuesday little changed as the pressure from rising yields continued to weigh on regional equities, while looming threat of tariffs from U.S. President-elect Donald Trump kept investors on edge.
The pan-European STOXX 600 remained steady, closing at 508.31 points after experiencing a 1.4% dip over the previous two sessions.
The yield on Germany’s 10-year bund climbed to 2.62%, marking its highest point since July 2024, while Italy’s 10-year yield was at 3.819%.
Tech View
Nifty opened gap up and consolidated during the day to close in the green, Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan said, calling it a temporary relief rally after a sharp decline in the previous trading sessions. “During the fall the Nifty faced selling pressure from the 20-hour moving average which is placed at 23277. The downtrend is still intact and hence minor degree pullbacks towards the resistance zone (23,270 – 23,300) should be considered as a selling opportunity. On the downside we expect the Nifty to drift lower towards 23,000 – 22,670 from a short term perspective. A move above 23,340 shall lead to a further short covering otherwise the downtrend is intact,” Gedia said.
Most active stocks in terms of turnover
Adani Power (Rs 308.75 crore), Waaree Renewable Technologies (Rs 210.27 crore), GMR Airports (Rs 176.54 crore), ICICI Bank (Rs 146.37 crore), Adani Green Energy (140.31 crore), Mahindra & Mahindra (M&M, Rs 132.18 crore), Zomato (Rs 112.27 crore) and Reliance Industries (RIL, Rs 103.64 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: 7.41 crore), Srestha Finvest (Traded shares: 3.50 crore), GMR Airports (Traded shares: 2.47 crore), GTL Infra (Traded shares: 2.45 crore), Yes Bank (Traded shares: 1.15 crore), EaseMyTrip (Traded shares: 45.72 lakh) and SpiceJet (Traded shares: 87.67 lakh) were among the most actively traded stocks in volume terms on BSE.
Stocks showing buying interest
Shares of Adani Power, IDBI, Central Bank, Uco Bank, Indian Overseas Bank (IOB), Olectra, Maharashtra Bank and Adani Green Energy were among the stocks that witnessed strong buying interest from market participants.
52 Week high
Over 80 stocks hit their 52 week highs today while 221 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Goldiam, Anand Rayons, Avax Apparels and Ornaments, BGR Energy Systems, Blue Coast Hotels, IRIS Business Services, Kwality Pharmaceuticals and Vandana Knitwear.
Stocks seeing selling pressure
Among the large cap names were HCL Technologies, Hindustan Unilever (HUL) and Apollo Hospital Enterprises. Other stocks which witnessed significant selling pressure were KFin Technologies, United Spirits, Vijaya Diagnostic, LTIMindtree, Angel One and Amber Enterprises.
Sentiment meter favours bulls
Action in heavyweights like HDFC Bank, ICICI Bank and State Bank of India (RIL) pulled markets the most, ensuring a positive ending. The market sentiments were sideways. Out of the 4,073 stocks that traded on the BSE on Tuesday, 2,823 stocks witnessed advances, 1,144 saw declines while 106 stocks remained unchanged.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
