Finance
Market Preview: 10 Factors Influencing Stock Market Movement This Friday
### Market Overview
The pre-holiday trading session was characterized by thin activity. Analysts noted that foreign investors turned into net sellers, contributing to the overall bearish sentiment. Key sectors, particularly oil and gas, pharmaceuticals, and information technology, contributed to the downward pressure on the benchmarks. Vinod Nair, Head of Research at Geojit Investments, remarked that the subdued trading volumes in a holiday-shortened week mirrored trends across broader Asian markets.
Despite the lack of robust trading leads, some analysts pointed to the Reserve Bank of India’s (RBI) newly announced liquidity measures as a potential stabilizing factor. This includes open market operations (OMOs) and a USD/INR buy-sell swap designed to improve systemic liquidity and mitigate currency volatility.
### Global Context
On the global front, U.S. markets displayed resilience with the S&P 500 and Dow Jones Industrial Average reaching record closing highs. Stronger-than-expected U.S. GDP data indicated economic robustness, though a rise in unemployment tempered overall optimism. Meanwhile, gold prices continued their upward trajectory, supported by a softer dollar and heightened geopolitical concerns, coupled with expectations of ongoing Federal Reserve policy easing. In contrast, Brent crude oil prices remained near multiyear lows, which many analysts see as a reassuring indicator for inflation.
### Technical Analysis
Amid a climate of uncertainty, Ajit Mishra, Senior Vice President of Research at Religare Broking, maintained a positive bias for market outlook. He suggested a “buy-on-dips” strategy, provided the Nifty continues to hold its upward momentum. Mishra emphasized the need for stronger participation from the banking index, indicating that a decisive breakout above the 59,500 level could signal the next phase of upward movement.
He further advised market participants to take a stock-specific approach while focusing on sectors that consistently demonstrate outperformance, like private banks, metals, and the auto sector, all under a disciplined risk management strategy.
### Trading Activity Highlights
In terms of trading activity, JBM Auto led the turnover on the Bombay Stock Exchange (BSE) with a staggering Rs 2,302 crore traded, followed closely by Hindustan Copper at Rs 2,030 crore. Other notable names included Jupiter Wagons, Reliance Industries Limited (RIL), HDFC Bank, and ICICI Bank, which all garnered significant attention in value terms.
On the National Stock Exchange (NSE), the most actively traded stocks by volume included Vodafone Idea, with a remarkable 60.65 crore shares traded, followed by Reliance Power, Jupiter Wagons, and Hindustan Copper. The trading volumes indicate robust interest in specific counters, highlighting potential areas for investors to focus on.
### Market Sentiment
Sentiment overall leaned bearish, as indicated by the number of stocks declining versus advancing. Out of the 4,332 stocks that traded on the BSE, 2,346 stocks experienced declines, while 1,841 managed to see gains. Such figures underscore the cautious mood prevailing among investors ahead of the holiday and amidst broader economic uncertainties.
### Stocks to Watch
Several stocks exhibited particular buying interest, with names like JBM Auto, Hindustan Copper, Reliance Power, and IIFL Finance drawing attention from market participants. Meanwhile, stocks like Kajaria Ceramics and Navin Fluorine faced significant selling pressure.
Notably, over 115 stocks reached their 52-week highs while 102 dipped to lows. Prominent names that touched new highs included Vedanta and Maruti Suzuki, signaling selective strength in certain equities despite the overall market sentiment.
While the markets are closed for the Christmas holiday, the upcoming sessions will be keenly observed for new developments, especially as investors look to evaluate potential opportunities for the new year.