Ahead of Market: 10 Key Factors to Drive Stock Market Action on Thursday
Indian markets staged a rebound on Wednesday, fueled by fresh foreign fund inflows and buying interest in energy, commodities, and public sector enterprise (PSE) stocks. The upcoming November derivatives expiry is expected to play a crucial role in shaping market trends. Here’s what you need to know to stay ahead:
1. Market Recap
The S&P BSE Sensex rose 230.02 points (0.29%) to close at 80,234.08, while the Nifty 50 climbed 80.40 points (0.33%) to end at 24,274.90. Markets remained range-bound, reflecting ongoing consolidation but retained a positive tone.
2. Key Levels to Watch
Nifty Range: Consolidation continues between 24,100 and 24,420.
Breakout Trigger: Analysts suggest a decisive move above 24,420 could open the gates for a rally towards 24,550.
Support Zone: Immediate support is seen at 24,150.
3. Analyst Insights
Ajit Mishra, Market Analyst at Religare Broking, remarked, “The Nifty’s resilience during the consolidation phase is notable. The November derivatives expiry could be the catalyst for a breakout, especially above the 24,350 level. Rotational buying in heavyweight stocks across sectors is aiding market sentiment.”
4. Sectoral Action
Buying interest was particularly strong in the energy, commodities, and PSE sectors, which helped drive Wednesday’s gains.
5. Technical View
Nagaraj Shetti, Senior Technical Analyst at HDFC Securities, noted:
Daily Candle Formation: A small positive candle on Wednesday hints at broader range movement with a slight positive bias.
Resistance Levels: Watch for hurdles near 24,400–24,500.
Support Levels: Strong support at 24,150.
6. Global Cues
US markets painted a mixed picture:
The S&P 500 and Nasdaq fell, weighed down by tech stocks like Nvidia (-2.5%) and Microsoft (-0.6%).
Dow Jones gained on strength in healthcare and financials.
Inflation Update: The PCE index rose 2.3% YoY in October, staying above the Fed’s 2% target but meeting expectations.
7. Tech Stock Pressure
Tech took a hit as Dell and HP plunged over 10% on weak forecasts, dragging the S&P 500 lower.
8. Foreign Institutional Investors (FIIs)
Fresh foreign fund inflows supported the Indian market on Wednesday. FIIs’ activity around the derivatives expiry will be closely monitored.
9. Derivatives Expiry Impact
The monthly expiry of November contracts on Thursday could spur volatility and influence market direction. Traders should watch open interest data for clues.
10. Broader Sentiment
Market sentiment remains cautiously optimistic, driven by rotational buying in heavyweights and hopes of a breakout above key levels. However, global cues and derivatives expiry dynamics could sway short-term moves.
Conclusion
The Indian market is poised at a critical juncture. While consolidation has been the theme, the November derivatives expiry could act as a trigger for a breakout. Keep an eye on Nifty’s key resistance and support levels, sectoral rotation, and global cues to navigate Thursday’s action effectively.
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