Ahead of Market: Key Factors That Will Decide Stock Market Action on Thursday

Broader Market Sentiment
Indian markets ended lower for the third straight session, with both the Sensex and Nifty closing weaker as selling pressure in heavyweight stocks, geopolitical tensions and weak global cues weighed on investor confidence. Sentiment is seen as cautious and range-bound ahead of key catalysts such as the upcoming Q3 earnings results and US economic data.

Global Cues to Watch
• US markets showed mild gains, with traders awaiting the US non-farm payrolls report, which could influence global risk sentiment and currency moves. • European markets were mixed, with some gains offset by weakness in financials and commodities.

Technical and Market Breadth Signals
• The Nifty index remained volatile, trading within a relatively narrow range, with immediate support near 26,000–26,100 and resistance near 26,300 — a decisive move beyond these levels could set the tone for trends ahead.
• Market breadth was mixed, with over 140 stocks hitting 52-week highs while around 120 stocks hit 52-week lows, signalling divergent stock-specific activity.

Sector & Stock Action
• Active trading was seen in major counters such as HDFC Bank, ICICI Bank, Hindustan Copper, RIL and Tata Elxsi, showing where liquidity and interest are concentrated.
• Stocks with buying interest included Tata Elxsi, Elecon Engineering, KPIT Technologies and others, suggesting pockets of accumulation in mid-cap and tech-oriented names.
• Selling pressure was visible in names such as Cipla, Ola Electric Mobility and select consumer stocks.

Sentiment Indicators
• The sentiment meter was neutral, indicating neither clear bullish nor bearish dominance. This cautions traders to be selective rather than aggressive.

What Traders Are Watching Next

1. Q3 Earnings outlook — forecasts and results from major corporates could drive sector rotation and market direction.
2. US jobs and economic data — key reports may impact global risk sentiment and FII flows.
3. Technical thresholds — breach of key levels on Nifty could spark directional trades.

In summary: Indian markets are expected to trade in a cautious and range-bound manner on Thursday, influenced by global cues, stock-specific activity, and upcoming earnings releases. Selective buying in defensive and high-turnover stocks may provide short-term trading opportunities amid overall cautious sentiment.