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• Equity benchmarks extended their losing streak for the sixth consecutive session, weighed down by a sharp rise in crude oil prices above the key $90 per barrel mark, weak global cues, and mounting concerns over escalating geopolitical tensions between the U.S. and Iran. The Nifty declined 132 points, or 0.5%, to close below the 24,200 level at 24,155, taking its cumulative loss over the past six trading sessions to more than 400 points, or 1.7%.

• Sector-wise, Nifty IT and Realty emerged as the worst performers, falling around 2% and 1.5%, respectively. In contrast, defence and electronic component stocks outperformed the broader market.

• The Nifty Defence Index gained nearly 1% following the government's notification of the sixth Positive Indigenisation List, covering 405 defence items with an estimated business opportunity of Rs 3,070 crore. Among defence stocks, Paras Defence surged 10% to close at Rs 1,527, while Data Patterns, Astra Microwave, GRSE, and BEML advanced by up to 6%.

• Electronic component stocks also witnessed strong buying interest. Jyoti CNC jumped 8% after the government approved 31 applications worth Rs 7,877 crore under the Electronics Component Manufacturing Scheme (ECMS) 2.0.

• Market breadth remained weak, with the Nifty 500 advance-decline ratio at 1:1.5, indicating continued profit booking in the mid-cap and small-cap segments.

• Globally, both Asian and European markets traded lower as rising oil prices and bond yields, coupled with renewed geopolitical tensions and inflation concerns, weighed on investor sentiment. -492.70 (-0.63%)

Technical Outlook:

• Nifty index opened on a flattish note and remained in a sideways to negative trend throughout the session as it traded in a narrow range of 100 points to close near its lower band near 24150 zones. It formed a bearish candle on the daily frame and has been making lower highs from the last eleven sessions. Now it has to cross and hold above 24200 zones then upside could be seen towards 24350 then 24450 zones else a hold below the same could see weakness towards 24000 then 23900 zones.

• S&P BSE Sensex index opened on a negative note and traded in a range of nearly 200 points for most part of the session. Momentum remained muted as both bulls and bears struggled to keep momentum in their favour. It formed a bearish candle on the daily chart and continues to form lower highs from the last eleven sessions and is now hovering near its 50 DEMA. Now it has to cross and hold above 77300 zones for a bounce towards 77500 then 77800 levels while a hold below the same could see some weakness towards 77000 then 76700 zones.

Derivative Outlook:

• Nifty future closed negative with losses of 0.72% at 24216 levels. Positive setup seen in MCX, Bosch, LTF, Idea, Sonacoms, Policy Bazaar, Torrent Pharma, Oil, APL Apollo and Motherson while weakness seen in SBI Cards, Inox Wind, Colpal, Tata Elxsi, Suzlon, Asian Paints, Indus Towers, Infosys, GE Vernova and TMPV.

• On option front, Maximum Call OI is at 25000 then 24500 strike while Maximum Put OI is at 24000 then 23700 strike. Call writing is seen at 24200 then 24300 strike while Put writing is seen at 23700 then 24200 strike. Option data suggests a broader trading range in between 23700 to 24700 zones while an immediate range between 23900 to 24400 levels.

• Defence Ministry notifies sixth Positive Indigenisation List with 405 items, eyes Rs 3,070 crore business potential - The Department of Defence Production (DDP) under the Ministry of Defence has notified the sixth Positive Indigenisation List (PIL), covering 405 strategically important defence items with an estimated business potential of Rs 3,070 crore

• Tube Investment - The company said demand remains strong across its core engineering businesses, with volumes growing 17% during the quarter.

• Fractal Analytics – Company has secured a US$17M+ multi-year agreement with a leading U.S. healthcare enterprise to modernize its Data and AI foundation on Databricks platform and support its journey toward becoming an AI-ready organization.

• Inox Clean Energy – Company has completed the acquisition of BlackRock-owned GIP's Vena Energy India Holdings Pte Ltd, Vena Group's India renewable energy platform, for a total transaction value of about Rs 6,000 crore.

• Ceigall India – Company’s JV bags Rs 2,150 crore road orders from Centre in Arunachal Pradesh Ceigall India holds a 74% stake in the joint venture.

• Piccadily Agro Industries – Company received no adverse observation/no objection letters from BSE and NSE for its proposed demerger with Piccadily Food & Essentials.

• ONGC Confirms US Nod to Resume Venezuela Oil Operations – Company said its subsidiary ONGC Videsh received US government authorization in July to resume oil and gas operations in Venezuela. ONGC Videsh holds two Venezuela assets, San Cristobal and Carabobo-1.

Global Market Update

• European Market - European stocks fell on Tuesday as oil prices and bond yields climbed amid renewed geopolitical tensions and inflation concerns.

• Asian Market – Asian stocks declined. Japanese stocks fell 2.5% as US Treasury bond yields hit almost a 20-year high amid investor concerns about uncertainty on future government spending and inflation fears. Both Taiwan and South Korea Index slipped up to 2%. • US Data - Manufacturing and Industrial Production.

• Commodity - Oil prices rose 1% to above $92/bbl as hopes for a near-term deal to reopen the Strait of Hormuz dimmed, with the U.S. and Iran still far apart over control of the waterway and other key issues needed for a lasting peace.

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