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

Benchmark indices Sensex and Nifty closed down in a volatile session on Thursday due to profit-taking in banking and financial shares after a recent sharp rally. Erasing its early gains, the 30-share BSE Sensex declined 122 points to settle at 77,988. The 50-share NSE Nifty dropped 34 points to end at 24,196.

Meanwhile, the volatility gauge India VIX ended at 18.67, down by 8.93% from the last closing.

Here's how analysts read the market pulse:

"Indian markets witnessed a volatile session today, reflecting a shift from directional momentum to consolidation after the recent sharp recovery. The index opened on a positive note, supported by improving global cues and easing geopolitical concerns, but failed to sustain higher levels as profit booking emerged through the day," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.

From a macro perspective, sentiment remains sensitive to developments in the Middle East, he said.

"Initial optimism around a potential second round of US-Iran talks helped cool crude prices, offering some relief to inflation concerns. However, the market’s inability to hold gains suggests that investors remain cautious and are not yet willing to chase the rally aggressively," Hariprasad added.

US markets

Wall Street stocks were little changed early Thursday, lingering near records amid hopes for a resolution of the US-Iran war as markets continue to shrug off economic effects.
Both the S&P 500 and Nasdaq finished at records Wednesday as analysts pointed to an expected surge in equities if a peace deal is reached and to US bank earnings that showed American consumers remain healthy.

But the head of the International Energy Agency said Europe faces a looming jet fuel crisis, while the American Farm Bureau highlighted a spike in fertilizer prices due to the near-shuttering of the Strait of Hormuz.

European Markets

European shares edged higher on Thursday as growing optimism about a potential resolution to the Middle East conflict lifted market sentiment, while investors assessed corporate earnings reports across the region. The pan-European STOXX 600 index was up ‌0.1% to 618.05 points ⁠as ⁠of 0848 GMT.

Major regional markets also rose, with France's CAC and London's FTSE 100 adding 0.1% and 0.4%, respectively.

Tech View

The broader structure remains bullish, with immediate support placed at 24,000. A gradual upmove towards the 24,500 zone can be expected in the near term. The volatility index continued to ease, slipping close to the 18 level, and any further decline is likely to support bullish sentiment. Meanwhile, momentum indicators and oscillators continue to remain in buy mode on the daily chart.

Most active stocks in terms of turnover

HDFC Bank (Rs 504 crore), RIL (Rs 404 crore), Gujarat Mineral Development (Rs 367 crore), ICICI Bank (Rs 324 crore), Airtel (Rs 292 crore), Infosys (Rs 244 crore) and SBI (Rs 217 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: 4.57 crore), JP Power (Traded shares: 3 crore), Ola Electric (Traded shares: 2.1 crore), YES Bank (Traded shares: 1.6 crore), Suzlon (Traded shares: 1.6 lakh), Reliance Power (Traded shares: 1.3 lakh), and Firstsource (Traded shares: 70 lakh) were among the most actively traded stocks in volume terms on BSE.

Stocks showing buying interest

Gujarat Mineral Development, SCI, Firstsource, Sonata Software, Syrma SGS, NLC India and Aptus Value Housing were among the stocks that witnessed strong buying interest from market participants.

52 Week high

Among the ones which hit their 52 week highs included Gujarat Mineral Development, SCI, Firstsource, Syrma SGS, NLC India and Adani Power and BHEL.

Stocks seeing selling pressure

Among the names were Supreme Industries, Tejas Networks, Astral Poly Tech, ZEE Enterprises, GMR Infra, Hero MotoCorp, Kirloskar Bros.

Sentiment meter favours bulls

The breadth stayed positive in the overall markets. Out of the 4,494 stocks that traded on the BSE on Thursday, 2775 stocks witnessed advances, 1574 saw declines while 145 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)