IGI Logo

• The equity benchmark Nifty recovered from its intraday low and gained over 100 points, supported by bargain hunting around the psychological 23,000 level. The decline in crude oil prices to around $107 per barrel from high of $110, along with a positive trend across global markets, provided further support to investor sentiment. Traders also appeared to cover short positions at lower levels ahead of the US Federal Reserve’s interest-rate decision to be announce today.

• The Nifty gained 105 points, or 0.4%, to close at 23,217, after touching an intraday low of 23,116, following a decline of more than 1% in the previous session. Globally, Asian and European markets advanced by up to 1% ahead of the Federal Reserve’s policy announcement, which is expected to influence the near-term direction of global equities.

• Sectorally, FMCG, oil & gas, realty and auto stocks gained up to 1.8%. The Nifty FMCG Index emerged as the strongest performer, rising 1.8%, as investors shifted towards defensive sectors. Colgate, Marico, Britannia and Godrej Industries were among the key gainers, advancing up to 4%.

• Insurance stocks also witnessed fresh buying interest. PB Fintech surged 5.4% to close at ?1,831, while HDFC Life, SBI Life and ICICI Prudential Life gained up to 3%

Technical Outlook:

• Nifty index opened on a positive note and witnessed volatility in the initial hour before settling into a narrow range amidst rangebound momentum. The index found support at lower levels but faced resistance at higher levels throughout the session. It formed small bodied candle on daily chart with wicks on both side. Now till it holds below 23300 zones weakness could extend towards 23150 then 23050 levels while on the upside hurdles can be seen at 23400 then 23500 zones.

• S&P BSE Sensex index opened on a positive note and witnessed volatile swings in the first half an hour but managed to hold the previous session's low. Post that, the index remained stuck in a narrow range of nearly 250 points with momentum missing on either side. It formed a small bodied candle with wicks on both sides on the daily chart indicating a clear tussle between bulls and bears with selling pressure visible on small bounces. Now till it holds below 74500 zones, weakness could be seen towards 74000 then 73800 zones while on the upside hurdles can be seen at 74700 then 75000.

Derivative Outlook:

• Nifty future closed positive with gains of 0.25% at 23282 levels. Positive setup seen in PB Fintech, Paytm, Radico Khaitan, PNB, MFSL and ICICI Pru Life while weakness seen in Premier Energies, Kalyan Jewellers, TCS, LTM, BSE, Wipro, Biocon, Waaree Energies, Suzlon, CAMS, UPL, Swiggy, KPIT Tech and Crompton Greaves.

• On option front, Maximum Call OI is at 23400 then 23500 strike while Maximum Put OI is at 23200 then 23000 strike. Call writing is seen at 23250 then 23300 strike while Put writing is seen at 23200 then 23100 strike. Option data suggests a broader trading range in between 22800 to 23800 zones while an immediate range between 23000 to 23500 levels.

• Praj Industries and Gevo Enter Agreement for Bio-IBA in India – Company and Gevo Enter Development & Commercialization Agreement for Bio-IBA in India Partnership advances the world's first Bio-IBA application for diesel blending towards commercial demonstration in India, opening a new route to decarbonise the diesel economy.

• Exide Industries – Company has signed a long-term strategic cooperation agreement with ExCom Energy Solutions GmbH of Germany for industrial battery and energy storage systems across the European Economic Area.

• Godavari Biorefineries receives Chinese patent for use of compounds for treatment of viral infection – company received a patent from the Chinese Patent Office for its application titled “Use of Compounds for Treating Viral Infections”.

• Park Media – Company has entered into a 28-year operations and management (O&M) agreement with Axis Educational Society to run a 300-bed multi-super speciality hospital in Kanpur, Uttar Pradesh.

• Oracle India may cut 3,000 jobs; routine Indian sector IT roles face pressure – Company has started another round of job cuts globally, with industry experts tracking the company estimating that around 10% of its India workforce, or roughly 3,000 employees, could be affected.

Global Market Update

• European Market – European stocks and bonds are finding relief after days of selling as traders wait for the Federal Reserve’s latest interest-rate decision and updated projections before placing bets on where markets will head next. UK, Germany and France Index marginally gained.

• Asian Market – Asian stocks rose as the technology sector rebounded ahead of a Federal Reserve announcement due later that will influence the near-term path for global equities Japan, South Korea, Taiwan Index gained up to 1% .

• US Data – FOMC Interest Rate Decision.

• Commodity – Oil prices edged lower in early European trading Wednesday ahead of the Federal Reserve's interest-rate decision, while continuing disruptions in the Middle East and Houthi advances kept supply risks elevated. Brent crude futures fell 1.1% to $107.55 a barrel.

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