Ahead of the Market: 10 things that will determine D-Street action on Wednesday

economictimes.indiatimes.com:

Here's how analysts interpret the market pulse: «Domestic indices traded with a negative bias below the flattish trend, influenced by global peers. Despite this, mid- and small-cap stocks continued to outperform the benchmark index. IT stocks rallied amid hopes of a soft landing for the US economy.

Although India's manufacturing activity remains robust, it marginally moderated for the second consecutive month in July. The market direction in the upcoming days will hinge on key data points, including auto sales figures, US PMI, and US job data,» said Vinod Nair, Head of Research at Geojit Financial Services. «Nifty remained above the critical near-term moving average (21EMA), reinforcing a positive outlook.

A hidden positive divergence on the daily chart suggests a potential bullish reversal in price momentum. Short-term prospects indicate a sideways to positive trend if the index stays above 18550. A decisive move above 19800 could propel the index towards the 20000 mark,» Rupak De from LKP Securities commented.

That said, let’s look at what some key indicators are suggesting for Wednesday’s action:US MarketThe S&P 500 and Nasdaq fell on Tuesday as investors assessed mixed earnings from pharma heavyweights and digested data that showed manufacturing activity slowed more than expected in July. Pfizer gained 1.3% after the drugmaker said it would launch a program to cut costs if demand for its COVID-19 products remains muted this fall. Merck shares were flat even as it raised its full-year profit forecast after posting a smaller-than-expected second-quarter loss.