This is how analysts read the market pulse:
The market suffered a broad decline, dipping below the 26,000 mark as investors turned cautious ahead of this week’s Fed policy decision, said Vinod Nair, head of research at Geojit Investments. He added that despite robust domestic growth data and the RBI’s recent rate cut, short-term sentiment remains overshadowed by concerns over global monetary policy, continued FII outflows and currency depreciation.
“Volatility was further exacerbated by a rise in Japanese bond yields to multi-year highs, raising fears of a possible unwinding of the yen carry trade,” Nair said.
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American markets
Wall Street’s major indexes were mixed Monday as investors moved cautiously ahead of a widely expected Federal Reserve rate cut later this week in a meeting that will be one of the most divisive in years.
Delayed data last week showed consumer spending rose moderately toward the end of the third quarter, giving investors more confidence that the Fed will focus on cutting borrowing costs on Wednesday to help support the labor market.Inflation has so far proven stubborn, making most policymakers cautious about cutting borrowing costs, although some influential Fed policymakers have taken a more dovish stance in recent weeks.
European markets
European shares were subdued on Monday, with declines in consumer-oriented stocks offsetting gains in the industrial and healthcare sectors, as investors awaited the US Federal Reserve’s monetary policy meeting this week.The pan-European STOXX 600 fell 0.1% to 578.23 points. The major regional indexes also fell, with those in London and Spain down 0.1% each.
Technical view
The Nifty retreated after optimism on the monetary policy day and settled below the 26,000 support level, said Rupak De, Senior Technical Analyst at LKP Securities. He added that the index has now closed below the 21 EMA for the first time in many days, indicating a weakening trend.
“Supporting this view, the RSI has once again turned into a bearish crossover. Adding to the negative situation, Nifty recorded the lowest closing price in nine days, highlighting broader weakness, while the India VIX also witnessed a spike,” De said.
Sentiment looks weak in the near term with the index possibly slipping towards 25,730, De said, adding that on the higher side, resistance is at 26,000-26,100.
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Most active stocks in terms of turnover
InterGlobe Aviation (Rs 7,924 crore), Kaynes Technology (Rs 4,456 crore), Eternal (Rs 2,461 crore), RIL (Rs 1,741 crore), BSE (Rs 1,683 crore), SBI (Rs 1,474 crore) and HDFC Bank (Rs 1,293 crore) were among the most active stocks on BSE in value terms. Higher activity in a counter in terms of value can help identify the counters with the highest trading turnover per day.
Most active stocks by volume
Vodafone Idea (Shares traded: Rs 84.79 crore), Suzlon Energy (Shares traded: Rs 9.7 crore), YES Bank (Shares traded: Rs 9.27 crore), Eternal (Shares traded: Rs 8.51 crore), Ola Electric Mobility (Shares traded: Rs 7.61 crore), JP Power (Shares traded: Rs 4.94 crore) and Reliance Power (Shares traded: Rs 4.75 crore). crore) were among the most actively traded stocks on NSE by volume.
Stocks that show buying interest
Shares of Latent View Analytics, Niva Bupa Health Insurance Company, 3M India, Home First Finance Company India, Jindal Stainless, ITI and Transformers & Rectifiers (India) were among the stocks that witnessed strong buying interest from market participants.
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52 Week High
More than 88 stocks hit their 52-week highs today, while 527 stocks fell to their 52-week lows. PTC Industries and NALCO were among those hitting 52-week highs.
Stocks see selling pressure
Stocks that saw significant selling pressure included Kaynes Technology, InterGlobe Aviation, Tata Teleservices (Maharashtra), Honasa Consumer, Aegis Vopak Terminals, Data Patterns (India) and Engineers India.
Sentiment gauge bearish
Market sentiment was bearish. Of the 4,485 shares traded on the BSE on Monday, 3,348 shares saw a decline, 950 rose, while 187 shares remained unchanged.
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(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of the Economic Times)
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