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• Benchmark equity index, the Nifty, declined more than 0.5%, ending a five-session winning streak, mainly due to a sharp sell-off in IT stocks. The Nifty IT Index plunged over 3% after Accenture lowered its full-year revenue growth forecast, raising concerns about the growth outlook for Indian IT companies. Major IT stocks including Infosys, Tata Consultancy Services, HCLTech, Mphasis, and Tech Mahindra fell between 3% and 6%.

• Despite weakness in large-cap stocks, broader markets remained resilient. The Nifty Midcap Index and Nifty Smallcap Index gained up to 0.7%, reflecting continued buying interest in mid- and small-cap shares. The advance-decline ratio for the Nifty 500 stood at 1.2:1, suggesting that investors rotated from large-cap stocks into the broader market.

• The market recovered part of its intraday losses during the final hour of trading, supported by declining crude oil prices, US-Iran peace agreement, and expectations that lower oil prices would support domestic economic growth. Crude oil prices dropped below $79 per barrel as shipping activity through the Strait of Hormuz gradually normalized, easing concerns over global supply disruptions.

• The Nifty ended the session down 155 points, or 0.6%, at 24,013. Across global markets, Asian and European indices delivered mixed performances, with investors encouraged by expectations that the reopening of the Strait of Hormuz would help restore oil flows and reduce inflationary pressures. -607.08 (-0.78%)

Technical Outlook:

• Nifty index opened with a gap down of around 180 points and traded in a range of nearly 100 points between the 23900 and 24000 zones for most part of the session. However in the last half an hour index witnessed strong buying from the 23900 zones and went on to surpass the day’s high above the 24000 mark. It formed a bullish candle on the daily chart with a longer lower shadow indicating strong buying interest from lower levels while on weekly chart it formed a doji-like candle. Now it has to cross and hold above 24050 zones for an up move towards 24200 then 24300 zones while support are seen at 23900 and then 23800.

• S&P BSE Sensex index opened with a gap down of around 550 points and traded in a range of nearly 350 points with swings on either side for most part of the session. However in the later part of the day bulls stepped in and witnessed strong buying from the 76500 zones which pushed the index above the day’s high near the 76900 mark. It formed a Dragonfly Doji candle on the daily chart indicating strong buying interest from lower levels. On the weekly scale it formed a small bodied candle with a longer lower shadow suggesting that support zones remain intact and buying is emerging on declines. Now it has to cross and hold above 77000 zones for an up move towards 77300 then 77700 zones while supports are seen at 76500 and then 76000 zones.

Derivative Outlook:

• Nifty future closed negative with losses of 0.48% at 24077 levels. Positive setup seen in BDL, Laurus Labs, Solar Industries, Auro Pharma, LICI, Bharti Airtel, Indian Hotel, Phoenix, AB Capital and ICICI Lombard while weakness seen in Infosys, TCS, PI Industries, Astral, Vedanta, Hind Zinc, Colpal, TMPV, Reliance and Dabur.

• On option front, Maximum Call OI is at 24000 then 24200 strike while Maximum Put OI is at 23900 then 23500 strike. Call writing is seen at 24000 then 24100 strike while Put writing is seen at 23900 then 23500 strike. Option data suggests a broader trading range in between 23500 to 24500 zones while an immediate range between 23800 to 24200 levels.

• VA Tech Wabag – Company has secured a contract worth more than $150 million to build and operate a seawater reverse osmosis desalination plant for Kuwait. Order is co’s first project in Kuwait.

• Tata Power – Company received a letter of intent from REC Power Development and Consultancy for the acquisition of Ryapte Power Transmission, a project special purpose vehicle. The project involves constructing about 250 km of transmission in Karnataka. Annual transmission charges amount to Rs521cr. Transmission service agreement period spans 35 years from commercial operation date.

• Alembic Pharmaceuticals - company received tentative USFDA approval for Binimetinib Tablets, 45 mg.

• Purvankara – Company receipt of the registration certificate for Project ''Miami By Purva'' from MAHARERA.

• Hindalco Industries - Company has started manufacturing aluminum bicycle components at a new facility near Pune in India’s Maharashtra state. Company will manufacture frames, rigid forks, handlebars and wheel rims at the factory. Annual production capacity is around 500,000 frames and forks, 750,000 handlebars and 800,000 pairs of wheel rims. The factory expands the company’s portfolio of value-added aluminum products.

• Prestige Estates Projects – Company is weighing putting an initial public offering (IPO) of its hospitality unit on hold.

• DFM Foods - Private equity major Advent International has held talks with advisors to help with the sale of packaged snack maker DFM Foods.

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