IGI Logo

• Equity benchmark indices extended their winning streak for a third consecutive session, with the Sensex gaining over 261 points and the Nifty closing above the 24,250 mark. Market sentiment remained upbeat, encouraging quarterly business updates, a decline in crude oil prices to a four-month low of around $72 per barrel, easing geopolitical tensions in the Gulf region, and healthy June net GST collections of nearly Rs 2 lakh crore. Investor confidence was further strengthened by progress in the US-Iran peace negotiations, which eased concerns over potential disruptions in the Strait of Hormuz and reinforced expectations of uninterrupted crude oil supplies.

• The Nifty advanced 95 points, or 0.4%, to close at 24,270, while the Sensex rose 261 points, or 0.4%, to settle at 77,763. Sectorally, most indices ended in positive territory, with Nifty Realty, Nifty IT, and Nifty Pharma emerging as the top gainers. Nifty Realty gained 2% as improving monsoon conditions boosted expectations of a recovery in the real estate sector. Earlier in the season, Mumbai-focused developers had come under pressure after the BMC suspended water connections to construction sites due to critically low reservoir levels. Nifty Pharma rose more than 1.5% following reports that India's contract development and manufacturing organisations (CDMOs) are rapidly expanding capacity to cater to rising demand for GLP-1 drugs such as semaglutide after patent expiries. Meanwhile, Nifty IT gained nearly 2% on the back of bargain buying.

• Among global markets, European and Asian equities traded higher as investors rotated into sectors that had underperformed in recent months amid elevated valuations in technology stocks. Meanwhile, US markets ended nearly 1% higher at record highs after weaker-than-expected jobs data eased concerns over further interest rate hikes by the Federal Reserve.

Technical Outlook:

• Nifty index opened gap up by 200 points but after a range bound start, it witnessed some profit booking at higher zones. It failed to cross 24400 zones but saw some support near 24250 levels and managed to close with gains of around 100 points. It formed a bearish candle on the daily chart but has been making higher highs - higher lows from the last three sessions. It formed a bullish candle on the weekly frame and continues to make higher highs from the last three weeks. Now it needs to hold above 24250 zones for strength to rebuild towards 24400 then 24500 zones while supports have shifted higher to 24200 then 24100 zones.

• S&P BSE Sensex index opened with a gap up of nearly 650 points but failed to hold onto its opening gains as selling pressure emerged right from the initial hour of the session. The early gains were completely wiped off and the index witnessed sustained profit booking thereafter. Selling pressure continued in the second half and dragged the index below 77900 marks. It formed a bearish candle on the daily chart but a bullish candle with a long lower shadow on the weekly frame. It continues to form higher highs suggesting buying interest is intact at the lower zones. Now it has to hold above 77700 zones for an up move towards 78000 then 78300 zones while supports have shifted higher to 77400 and then 77000 zones.

Derivative Outlook:

• Nifty future closed positive with gains of 0.35% at 24351 levels. Positive setup seen in Lodha, Nuvama, Auro Pharma, Oberoi, LTF, Zydus Lifescience, Lupin, Indusind Bank, AB Capital and Max Health while weakness seen in CG Power, Union Bank, Policy Bazaar, Dmart, Bhel, TIINDIA, Bank of Baroda, MCX, Indian Bank and JSW Energy.

• On option front, Maximum Call OI is at 24300 then 24400 strike while Maximum Put OI is at 24000 then 24300 strike. Call writing is seen at 24300 then 24350 strike while Put writing is seen at 24300 then 24200 strike. Option data suggests a broader trading range in between 23800 to 24800 zones while an immediate range between 24000 to 24500 levels.

• HCL Tech Shares won $1.14B AI Deal – Company with a European firm to establish an AI-driven operating model to transform its digital workplace and enterprise networks. The initial term of the $1.14 billion agreement is from July 2026 to December 2031, which can be extended for another five years.

• Service PMI - Services activity in India slowed in June, with the HSBC India Services Purchasing Managers' Index (PMI) falling to 57.4 from 59.8 in the previous month.

• Ikio Technology - The company reported 23% growth in FY26 revenue to Rs 595 crore and 28% growth in profit after tax to Rs 41.6 crore. EBITDA rose 29% to Rs 77.5 crore, while margin improved to 13% from 12.3%. Company said international business revenue increased 53% year-on-year to Rs 110.1 crore in FY26. The company also acquired an 88% stake in Gravus Tech and will start its hearables and wearables segment from the end of Q1FY27.

• BLS E-Services – Company told NDTV Profit that its acquisition of Atyati Technologies will provide entry into the banking services space and expand its client pool. The company said Atyati Technologies provides AI-led banking services and the acquisition is expected to add Rs 300 crore in revenue and Rs 20 crore in profit. BLS E-Services said it continues to expect annual growth of 20–25% and is seeing healthy trends despite global challenges. It said there is no impact from the Middle East crisis.

• Adani Enterprises - Company increased the size of its qualified institutional placement to Rs 15,000 crore from the base issue size of Rs 10,000 crore after receiving bids worth about Rs 38,000 crore. The company indicated an issue price of Rs 2,883 per share, at a 5% discount to the SEBI floor price of Rs 3,034.68 per share.

• Deepak Builders – Company GETS LoA for Rs498cr construction projects.

• Afcon Infra – Company secured a favorable arbitration award of ?148.67 crore (approximately Rs149 crore) regarding a tunnel project in Jammu & Kashmir.

• Quality Power – Company won order worth Rs40.9cr.

• Effwa Infra – Company won order worth Rs44.3cr.

Global Market Update

• European Market - European shares advanced as investors looked for alternatives to expensive tech shares in sectors that had been neglected by the market in recent months.. Both Germany and France Index gained up to 0.5%.

• Asian Market - Asian stocks rose Friday as tech firms enjoyed a much-needed rebound from the heavy selling of recent weeks, with a big miss on US jobs creation soothing worries over a Federal Reserve interest rate hike. Japan, South Korea, Taiwan Index gained up to 5%.

• Commodity - Brent Crude prices rose marginally to $72/bbl during Friday's trading as cautious optimism over efforts to secure peace in the Middle East between the United States and Iran supported market sentiment.

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412