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

Christmas holiday on Thursday. On Wednesday, The Indian market was closed for the Christmas holiday on Thursday. Dalal Street closed lower, with the Sensex and Nifty retreating amid thin, pre-holiday trading as foreign investors turned net sellers and a lack of fresh triggers kept risk appetite in check. Losses in oil and gas, pharmaceutical, and IT stocks weighed on the benchmarks as markets headed into the Christmas break. The Sensex fell 116 points, or 0.14%, to end at 85,408.70, while the Nifty 50 slipped 35 points, or 0.13%, to close at 26,142.10. Here's how analysts read the market pulse: Indian equities moved largely sideways in a holiday-shortened week, with trading volumes remaining subdued as the year draws to a close, a trend mirrored across broader Asian markets, said Vinod Nair, Head of Research at Geojit Investments, adding that the RBI’s recently announced liquidity initiatives, including OMOs and a USD/INR buy-sell swap, are expected to improve systemic liquidity and help stabilise currency volatility. "On the global front, stronger-than-expected US GDP data points to economic resilience, although rising unemployment has tempered optimism. Gold extended its rally on a softer dollar and elevated geopolitical risks, supported by increasing expectations of continued Fed policy easing. Meanwhile, Brent crude hovered near multi-year lows, reinforcing a benign inflation outlook. Looking ahead, market activity is likely to remain muted, though investors will be closely tracking developments on the trade front," said Nair. Also read | 5 Wall Street moguls who dismissed Bitcoin as a fad - Guess what they’re saying now! US markets The S&P 500 and the Dow Jones ⁠Industrial Average ended at record closing highs on Wednesday, while gold held just below the $4,500 mark by the conclusion of a light-volume, truncated Christmas Eve session. All three major U.S. stock indexes ended the session in positive territory, with the benchmark S&P 500 set to notch a gain of nearly 18% for the year. Tech View "We maintain a positive bias amid the ongoing consolidation in the index and continue to recommend a “buy-on-dips” approach as long as the Nifty holds its prevailing uptrend," said Ajit Mishra, SVP Research at Religare Broking. For fresh momentum, stronger participation from the banking index will be essential, with a decisive breakout above the 59,500 level likely to fuel the next leg of the up move, said Mishra, adding that "Until then, participants are advised to adopt a stock-specific approach, focus on sectors showing consistent outperformance such as private banks, metals and auto, and adhere to disciplined risk management in the low-volume environment." Also read | Warren Buffett’s biggest investment isn’t Apple, BofA or Coca-Cola - it’s a stock hidden in plain sight Most active stocks in terms of turnover JBM Auto (Rs 2,302 crore), Hindustan Copper (Rs 2,030 crore), Jupiter Wagons (Rs 1,660 crore), RIL (Rs 1,375 crore), HDFC Bank (Rs 1,365 crore), ICICI Bank (Rs 1,220 crore) and Shriram Finance (Rs 1,030 crore) were among the most active stocks on BSE in value terms. Higher activity in a...

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