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• Equity benchmark indices staged a strong rebound after a five days losing streak, with the Sensex surging over 800 points and the Nifty closing near the 24,000 mark. The rally was driven by a sharp correction in crude oil prices, which fell nearly 10% to below $88 per barrel, along with broad-based gains in global equity markets.

• Investor sentiment improved significantly after a temporary pause in hostilities between the US and Iran, raising hopes of further progress in peace negotiations. Softer crude oil prices, strong domestic corporate earnings, easing geopolitical tensions, and positive global cues supported the rally. The Sensex climbed 776 points, or 1%, to close at 76,835, while the Nifty advanced 238 points, or 1%, to settle at 23,995.

• Global markets also remained upbeat. US index futures gained as much as 1.5%, while both Asian and European markets advanced around 1% each, supported by improved risk appetite following the pause in US-Iran strikes and the sharp decline in Brent crude prices from nearly $100 per barrel to below $88 per barrel.

• Sectorally, the Nifty Pharma, Auto, IT, and Realty indices outperformed, rising up to 2%. The Nifty Pharma Index gained after Laurus Labs reported strong quarterly earnings, with the stock rallying 7% to close at Rs1,713. The Nifty Realty Index advanced more than 1%, led by Lodha, which rose 5% to Rs 1,198 after reporting robust quarterly results. Auto stocks also witnessed healthy buying interest ahead of the release of July monthly sales data later this week.

Technical Outlook:

• Nifty index opened with a gap up of around 160 points and witnessed sustained buying throughout the session as bulls defended its crucial support zones helping the index extend its gains and closed near its higher band near the 24K marks. It formed a bullish candle on the daily frame and is forming higher highs - higher lows from the last two trading sessions. Now it needs to hold above 24000 zones for an up move towards 24200 then 24300 zones while support can be seen at 23900 then 23800 zones

• S&P BSE Sensex index opened with a gap up of around 550 points on account of ease in geopolitical tensions and traded with a positive bias for most part of the session. Every minor dip was bought into as bulls managed to hold the opening gains throughout the day. It formed a bullish candle on the daily chart and negated its lower lows sequence of the last five days. The index reclaimed its 50 DEMA and closed the session with gains of around 780 points. Now it has to hold above 76700 zones for an up move towards 77200 then 77500 levels while on the downside support is seen at 76500 then 76200 zones.

Derivative Outlook:

• Nifty future closed positive with gains of 0.98% at 24040 levels. Positive setup seen in Kfintech, Laurus Labs, Concor, Eternal, AU Bank, Lodha, Shriram Finance, LTF, Asian Paints and Coforge First while weakness seen ONGC, Bank of India, Oil India, Indus Tower, National Aluminum, SRF, Bank of Baroda, Petronet, BSE and HDFC Bank.

• On option front, Maximum Call OI is at 24000 then 24200 strike while Maximum Put OI is at 24000 then 23900 strike. Call writing is seen at 24000 then 24100 strike while Put writing is seen at 23900 then 24000 strike. Option data suggests a broader trading range in between 23600 to 24400 zones while an immediate range between 23800 to 24200 levels.

• BEML – Media reports that the Union Cabinet is set to evaluate a new incentive scheme to boost local production of advanced construction equipment.

• Rajesh Power – Company said it has secured an order worth Rs 75.1 crore from Rajasthan Rajya Vidyut Prasaran Nigam Ltd (RVPNL).

• Adani Energy Solutions – Company plans to launch a qualified institutional placement of up to $417m new shares as early as this week, IFR reports.

• L&T – Company won order between Rs5000cr -Rs10000cr.

• Container Corporation – Company said it expects overall volume growth of 18% in FY27, according to comments made during its post-earnings analyst call, as reported by Informist. The company expects domestic operations volume growth of 25% year-on-year and export-import volume growth of 15% during FY27.

• Tata Elxsi – Company has signed a memorandum of understanding (MoU) with the Sree Chitra Tirunal Institute for Medical Sciences and Technology (SCTIMST). The partnership will focus on developing healthcare and medical technology solutions.

• Amber Enterprises – Company’s subsidiary IL JIN Electronics is seeking to raise Rs 3,500 crore through an IPO.

• Tamilnad Mercantile Bank's Q1FY27 results show a 35% YoY increase in net profit – Net Profit Rs412cr (up 35% YoY) , GNPA 0.69% vs. 0.73% q/q, Provisions Rs53.93cr vs 18.8cr (QoQ), Operating profit Rs611cr (up 48% YoY), NII Rs765.4cr (up 32% YoY) and Net NPA at 1.7% vs 1.8% (QoQ).

Global Market Update

• European Market – European shares climb as US-Iran peace optimism and falling oil lifted lifted UK, Germany and France Index gained up to 1%. However, a European Central Bank rate-setter said the institution will have to raise interest rates at least one more time to curtail inflation risks.

• Asian Market – Asian market gained over 1% as investor sentiment improved after a US-Iran pause of strikes while tech stocks gained. Oil price declines 6% to below $90/bbl that came on easing Middle East tensions. South Korea Index, Japan, Hong Kon and China Index gained up to 2%.

• US Data – Capital Goods and Durable goods order.

• Commodity – Brent crude prices have dropped by 6% to below $90/bbl as tradersbet that a pause in US attacks on Iran could prevent an escalation in the conflict that would further restrict global supply.

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