IGI Logo

• Equity benchmark Nifty declined for the third consecutive trading session and closed below the 24,400 mark, weighed down by concerns over July retail inflation, which rose to a 19-month high of 4.45%, escalating geopolitical tensions in the Gulf region, and a surge in crude oil prices to around $88/bbl. Nifty slipped 40 points, or 0.2%, to close at 24,395, taking its three-session decline to around 0.7%, as uncertainty over a potential US-Iran peace deal and the reopening of the Strait of Hormuz kept investors cautious. However, broader markets continued to attract buying interest, supported by strong quarterly earnings from several mid- and small-cap companies, despite subdued performance in large-cap stocks.

• Global markets, meanwhile, witnessed a smart recovery after softer-than-expected US inflation data reinforced expectations that the Federal Reserve may not need to raise interest rates next month.

• Back home, the Nifty Defence Index emerged as the top-performing sector, gaining 1.5%, supported by strong quarterly results from Solar Industries and Midhani securing a large overseas order worth around $400 million. Solar Industries and Midhani rallied nearly 9% each. The Nifty Realty Index also advanced around 1%, led by Oberoi Realty, Lodha and Prestige Estates, which gained up to 2%.

• On the other hand, the Nifty Bank Index declined nearly 0.5% as investors turned cautious on expectations of a possible RBI rate hike following the sharp rise in July retail inflation to a 19-month high of 4.45%, significantly above the RBI’s 4% target.

Technical Outlook:

• Nifty index opened on a flattish note and remained confined in a range of 100 points throughout the session with volatile swings on either sides amidst indecisiveness. It formed a bearish candle on the daily frame and has been making lower highs from the last eight sessions. Now if it holds above 24400 zones then upside could be seen towards 24550 then 24650 zones while support can be seen at 24300 then 24200 zones.

• S&P BSE Sensex index opened on a flattish note and remained under bearish pressure for the first half of the session where it broke 78000 and traded in a sideways trend in the second half. It formed a bearish candle on the daily frame and has been making lower highs and is trading in a range bound to negative trend since the last eight sessions. Now if it holds above 78000 zones then upside could be seen towards 78200 then 78500 zones while support can be seen at 77700 then 77400 zones.

Derivative Outlook:

• Nifty future closed negative with losses of 0.01% at 24467 levels. Positive setup seen in Astral, Solar Industries, Concor, APL Apollo Tubes, BDL, Kalyan Jewellers, Radico Khaitan, Jubilant Foodwork, Paytm, 360 One, Oil India and Eternal while weakness seen in SAIL, TI India, Biocon, GMR Airports, Manappuram Finance, Mankind Pharma, Hindustan Zinc, LIC Housing, Tata Steel and Adani Green Energy.

• On option front, Maximum Call OI is at 24500 then 24600 strike while Maximum Put OI is at 24300 then 24400 strike. Call writing is seen at 24600 then 24500 strike while Put writing is seen at 24350 then 24300 strike. Option data suggests a broader trading range in between 24200 to 24700 zones while an immediate range between 24300 to 24600 levels.

• L&T Gets Over $1 Billion Order To Build NVIDIA B300 AI Factory – Company through its Vyoma.AI subsidiary LTN Compute, has received an order to build a 10,000- GPU NVIDIA B300 AI Factory at its Chennai data centre campus. Order between Rs10000cr – Rs15000cr is part of a partnership with Together AI, the company

• Mishra Dhatu Nigam - Company secured Independent and International Metallic Material Laboratory (S400) approval for a wide range of chemical, mechanical and metallurgical testing from GE Aerospace.

• Titagarh Rail Systems – Company says in media that the company intends to remain primarily a rail-focused business, while continuing to operate in select adjacent segments. The company expects to build the Vande Bharat train prototype by the end of Q3, marking an important milestone in its passenger rail ambitions. Titagarh sees EBITDA margins of 11%-12% in the passenger rail segment going forward.

• TCS, Vodafone Sign Pact for AI-Led UK Enterprise Services – Company has signed a pact with Vodafone Business, the enterprise arm of VodafoneThree, to deliver AI-led digital transformation services for UK enterprise customers.

• Saatvik Green – Company secured a Rs 476-crore order from Vikran Engineering for the supply of solar PV modules.

• NBCC – Company won order worth Rs235 for repairs and renovation works .

Global Market Update

• European Market - Shares were in Europe market marginally higher after a subdued US inflation report reinforced hopes that the Federal Reserve won’t need to raise interest rates next month. Both Germany and France Index gained up to 0.4%

• Asian Market – Asian stocks climbed, after US inflation data showed cooling price pressures, easing expectations of a Federal Reserve rate hike next month. Taiwan Japan and South Korea Index gained up to 3.5%.

• US Data - PPI and Initial Jobless claim data.

• Commodity - Oil prices eased 1% to $87/bb after gains in previous sessions, as attention turned to expectations of weaker global oil demand this year, while there was no progress on opening the vital Strait of Hormuz.

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH00000041