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• Equity benchmark Nifty ended marginally lower, slipping below the 22,700 mark as investors booked profits and adopted a cautious stance ahead of the US inflation data due later in the day. Persistent FII selling and escalating geopolitical tensions, which pushed crude oil prices to around $106 per barrel, further weighed on market sentiment. The Nifty declined 99 points, or 0.4%, to close at 22,622 against the previous day’s close.

• Among global markets, Asian equities ended on a mixed note, while European markets traded higher, supported by encouraging quarterly earnings and in anticipation of the key US inflation data. Among the major sectors, the Nifty Capital Markets and Pharma indices fell over 1% each amid profit booking, while stock-specific and sectoral movements remained prominent. However, IT stocks continued their upward momentum following better-than-expected quarterly results from Tata Elxsi, TCS and HCL Tech. Tata Elxsi surged 6% to close at Rs 3,623, while the Nifty IT index gained over 1% on the day and advanced more than 5% during the week. Meanwhile, the Nifty Capital Goods index rose 1%, supported by strong buying in BHEL after the company reported impressive Q2 results. BHEL shares climbed 5% to close at an all-time high of Rs 464.

Technical Outlook:

• Nifty index opened on a flattish note and remained in a sideways to positive trend in the first half of the session but failed to sustain above 22750 zones and selling pressure emerged at higher levels. The index witnessed a decline towards 22550 zones in the second half amidst heightened volatility. It formed a bearish candle on the daily frame indicating resistances intact at higher levels. Now it has to cross and hold above 22650 zones for an up move towards 22850 then 22950 zones while support can be seen at 22500 then 22400 zones.

• S&P BSE Sensex index opened on a flattish note and remained sideways in the first half of the session. However, selling pressure emerged in the second half dragging the index towards 72600 levels as it faced resistance near its 20 DEMA. It formed a small bodied bearish candle with wicks on either sides indicating selling pressure at higher levels while buying interest remained intact near support zones. Now it has to hold above 72700 zones for a bounce towards 73200 then 73500 levels while on the downside support is seen at 72500 then 72200 levels. Derivative Outlook:

• Nifty future closed negative with losses of 0.81% at 22650 levels. Positive setup seen in BHEL, Tata Elxsi, PNB, ICICIGI, TechM and Infosys while weakness seen in BOB, Shriram Fin, Chola Fin, HDFC Life, LTF, MFSL, Bajaj Finance, Bajaj Finserv, VEDL, Dalbharat, Sbi Life and M&M.

• On option front, Maximum Call OI is at 23000 then 22700 strike while Maximum Put OI is at 22500 then 22600 strike. Call writing is seen at 22700 then 23000 strike while Put writing is seen at 22600 then 22650 strike. Option data suggests a broader trading range in between 22100 to 23100 zones while an immediate range between 22400 to 22900 levels.

• Adani Power – Company has won a contract to supply of 1,234 MW of thermal power under a long-term supply agreement of 25 years.

• BHEL – Board of Directors approved capital investment proposal for additional facilities for manufacturing of Thermal & Nuclear Sets at HEEP-Haridwar Unit at an estimated cost of Rs 500 crore.

• Ahluwalia Contracts – Company has received an order from Bennett University for construction worth Rs310cr.

• September WPI Inflation At 11.39% Vs 9.92% MoM – Food Inflation At 8.66% Vs 7.05% MoM, Primary Articles Inflation At 8.67% Vs 7.76% MoM. Fuel & Power Inflation At 25.9% Vs 22.9% MoM. Manufactured Products Inflation At 9.76% Vs 8.37% MoM and New Series Core WPI Inflation At 9.8%.

• RailTel Corporation of India – Company received an order from the State Bank of India (SBI) worth Rs197.77cr for continuation of MPLS Links to SBI DCDR and Branches along with P2P links across India at revised rates for a period of 5 years.

• Tata Consultancy Services – Company has been selected by MyState Limited, one of Australia’s leading financial institutions, to deploy the TCS BaNCS™ Global Banking Platform.

• Transrail Lighting – Company secured new orders worth Rs 408 crore), led by a greenfield Gas Insulated Substation (GIS) engineering, procurement, and construction (EPC) project in the Middle East and North Africa (MENA) region.

Global Market Update

• Asian Market – Asian stocks rose ahead of key US inflation data as expectations grew that the Federal Reserve may not need to raise interest rates aggressively next year. Crude oil advanced 1% to above $106/bbl. Japan, South Korea and Taiwan Index gained up to 1%.

• European Market – European stocks extended gains to a session high, driven by an upbeat report from ASML as well as a rally in real estate shares ahead of key US inflation data later in the day. UK, Germany and France Index gained up to 0.5% each.

• Commodity – Oil edged higher as attacks on Saudi Aramco’s headquarters added to a flare-up in the Middle East conflict, increasing uncertainty over a recovery in Persian Gulf energy flows. Brent traded near $106 a barrel.

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