The Market's Next Move: Unpacking the Key Factors Behind Tuesday's Trading Activity

Monday 24th of March 2025 15:11:29

Ahead of market: 10 things that will decide stock market action on Tuesday

The Indian stock market is expected to remain volatile on Tuesday, tracking global cues and market sentiment. Here are 10 key factors that will decide the direction of the market:

  1. Global cues: The US market is expected to remain closed on Tuesday due to the Independence Day holiday, which may lead to a lack of direction for the Indian market. However, Asian markets were trading mixed, with the Japanese market falling 0.6% and the Chinese market rising 0.4%.

  2. FII and DII action: Foreign institutional investors (FIIs) have been net sellers in the Indian market, while domestic institutional investors (DIIs) have been net buyers. The action of these investors will be watched closely for any direction.

  3. Nifty50: The Nifty50 has been trading in a narrow range and may see some movement on Tuesday. The support level for the index is around 14,600, while the resistance level is around 14,800.

  4. Banking stocks: Banking stocks have been under pressure in recent times, with the Nifty Bank index falling 2.5% in the last one week. Any further weakness in these stocks may weigh on the market.

  5. Auto stocks: Auto stocks have been rising sharply in recent times, with the Nifty Auto index rising 5.5% in the last one week. Any further gains in these stocks may boost the market.

  6. Oil prices: Crude oil prices have been rising sharply, which may impact the profitability of energy companies. Any further rise in oil prices may weigh on the market.

  7. RBI policy: The Reserve Bank of India (RBI) is expected to cut interest rates in its next policy review, which may boost the market.

  8. GDP data: The GDP data for the March quarter is expected to be released on Tuesday, which may impact the market. A strong GDP growth rate may boost the market, while a weak growth rate may weigh on it.

  9. Earnings season: The earnings season is around the corner, with many companies set to report their quarterly results. Any strong earnings may boost the market, while weak earnings may weigh on it.

  10. Corporate earnings: Corporate earnings have been strong in recent times, with many companies reporting strong profits. Any further strong earnings may boost the market.

Overall, the Indian stock market is expected to remain volatile on Tuesday, tracking global cues and market sentiment. The action of FIIs, DIIs, and the direction of the Nifty50 will be watched closely for any direction.