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• Equity benchmark Nifty declined over 100 points to close below the 24,500 mark, weighed down by a sharp rise in crude oil prices to nearly $90/bbl amid growing concerns over escalating tensions in the Middle East. Market sentiment remained cautious due to uncertainty surrounding the reopening of the Strait of Hormuz, rising geopolitical tensions between the US and Iran, and ahead of the release of US and India inflation data later this week. Nifty fell 112 points, or 0.5%, to close below the key psychological level at 24471.

• Broader markets, however, remained relatively resilient, with the Nifty Smallcap 100 and Nifty Midcap 100 indices managing to close marginally higher. Auto ancillaries, select pharma and oil & gas stocks were among the major gainers, while banking, metal and auto stocks witnessed profit booking. Among sectoral indices, Nifty PSU Bank and Nifty Private Bank declined 0.5–0.7% to lead the losses, while Nifty IT gained nearly 1%.

• Oil & gas stocks such as MRPL and Chennai Petroleum surged 11% and 15%, respectively. Gland Pharma and Amara Raja Energy & Mobility rallied 9% and 8%, respectively, following impressive Q1 results. Finolex Cables gained 14% after reporting strong quarterly earnings. Globally, Asian and European markets traded mixed as investors remained cautious ahead of the US inflation data, which could provide further clues on the Federal Reserve’s future interest-rate trajectory.

Technical Outlook:

• Nifty index opened on a flattish note and broke the crucial 24500 levels in the first hour and sustained below it for the entire trading session. It witnessed short term profit booking as the index failed to sustain at higher levels. It formed a bearish candle on the daily frame and closed below the lows of the last four trading sessions. Now it has to cross and hold above 24500 zones for an up move towards 24650 then 24750 zones while support can be seen at 24350 then 24250 zones.

• S&P BSE Sensex index opened on a flattish note and broke the crucial 78300 support in the first hour itself and remained in a sideways to negative trend for the rest of the session. It witnessed profit booking at higher levels as bulls failed to defend the key support zone. It formed a bearish candle on the daily frame and closed below the lows of the last five trading sessions. Now it has to cross and hold above 78300 zones for a bounce towards 78600 then 78800 levels while support can be seen at 78000 then 77800 zones.

Derivative Outlook:

• Nifty future closed negative with losses of 0.55% at 24525 levels. Positive setup seen in Zydus Life, Paytm, Naukri, PB Fintech, Titan, LTM, Divis Lab, Eternal, United Spirits, Laurus Labs, Mphasis and MCX while weakness seen in Godrej Properties, Tata Consumer, Max Healthcare, Polycab, Bharat Forge, Varun Beverages, HDFC AMC, Ambuja Cements, Alkem and NBCC.

• On option front, Maximum Call OI is at 24500 then 24700 strike while Maximum Put OI is at 24500 then 24400 strike. Call writing is seen at 24500 then 24700 strike while Put writing is seen at 24500 then 24400 strike. Option data suggests a broader trading range in between 24200 to 24800 zones while an immediate range between 24300 to 24600 levels.

• ONGC, Shell Energy sign MoU to explore deepwater oil, gas and LNG in India – Company announced that it signed a memorandum of understanding (MoU) with Shell Energy India Pvt Ltd to explore collaboration opportunities across India’s energy sector.

• Gland Pharma - Signs strategic CDMO deal with global pharma firm. To manufacture 55 injectable SKUs

• Govt Extends Subsidy Benefits For Electric Two-Wheelers Under PM E-Drive Scheme – Under the revised PM E-Drive scheme, eligible electric two-wheelers can receive an incentive of Rs 2,500 per kWh, capped at Rs 5,000 per vehicle

• Idea secures Rs 6,400 crore in first funding tranche from SBI-led banks after AGR relief – Vodafone Idea is raising funds from a consortium of public. sector banks led by State Bank of India, a group of Indian private sector lenders and foreign lenders through external commercial borrowings, CEO Abhijit Kishore said, as per a ET bureau report.

• HCC – Company won order worth over Rs524cr from NHPC

• Rail Vikas Nigam Ltd. (RVNL) reported a consolidated net profit of Rs 159 crore in Q1, up 17.8% from Rs 135 crore in the year-ago period. Revenue increased 10.5% year-on-year to Rs 4,321 crore from Rs 3,909 crore. EBITDA surged to Rs 184 crore from Rs 55.9 crore a year earlier. EBITDA margin expanded significantly to 4.3% from 1.4% in the corresponding quarter last year. Other income declined to Rs 141 crore from Rs 228 crore a year ago. Tax expense increased to Rs 64 crore from Rs 39 crore in the year-ago quarter

• Global Market Update

• European Market - European natural gas fluctuated, with traders weighing the outlook for Germany replenishing its depleted inventories against uncertainty over the Strait of Hormuz

• Asian Market – Asian markets witnessed mixed performance with investors awaiting U.S. inflation data for clues on the Federal Reserve's interest rate path.

• US Data – Existing Home Sales

• Commodity – Oil extended its recent rebound after President Donald Trump made sweeping new demands on Iran, further clouding the outlook for a deal to reopen the crucial Strait of Hormuz. Brent advanced toward $90 a barrel, up about 13% from a week ago.

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