Ahead of Market: 10 things that will decide stock action on Wednesday
equity indices Sensex and Nifty closed in the red on Tuesday, dragged by HDFC Bank, which will likely see lower-than-expected inflows because of a staggered adjustment of its weight on a key MSCI emerging market index. Broad-based selling pressure also contributed to the market's downturn.
The NSE Nifty 50 index shed 0.85% to 24,139, while the S&P BSE Sensex lost 0.87% to 78,956.
Here's how analysts read the market pulse:
«On the daily charts, we can observe that Nifty has witnessed a breakdown from the consolidation on the downside. The selling pressure can intensify on the downside. Immediate support stands at 24037 which is the 40-day moving average. A breach below it can take the Nifty down towards 23600. On the upside, 24300 is the immediate hurdle from a short-term perspective,» Jatin Gedia of Sharekhan.
Rupak De, Senior Technical Analyst of LKP Securities, said, «Bears have returned to the market as the index repeatedly failed to break above the 21 EMA. The near-term trend appears negative. On the upside, 24,250 now serves as a new resistance level, and as long as Nifty remains below 24,250, the strategy should be to sell on rallies. On the downside, initial support is around 24,000; if the index falls below this level, it may decline further towards 23,700.»
That said, here’s a look at what some key indicators are suggesting for Wednesday's action:
US market:
Wall Street gained on Tuesday as producer prices data indicated easing inflation pressures, setting the stage for a potential Federal Reserve
