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• Equity benchmark indices remained under pressure, with the Nifty closing below the 22,800 level and the Sensex declining by around 250 points driven by crude oil prices remaining above $106/bbl, elevated US bond yields at multi-year highs, weak global market cues, and continued weakness in the Indian rupee. During the September F&O series, the Nifty slipped nearly 7%, or around 1,500 points, marking one of the steepest monthly declines in the past six months.

• Global markets also remained under pressure. Overnight, US equities declined by up to 1%, while Asian markets slipped by as much as 1% amid rising crude oil prices, the US Dollar Index strengthening above 100, and the US 10-year Treasury yield climbing to 5.25%, its highest level in 19 years. Escalating geopolitical tensions between the US and Iran further weighed on global investor sentiment and risk appetite.

• Domestic markets witnessed heightened volatility due to the September series F&O expiry. The Nifty declined 64 points, or 0.3%, to close at 22,716 after moving between an intraday low of 22,569 and a high of 22,753. Sectorally, Nifty Auto, IT and FMCG indices declined by up to 1%.

• In contrast, the Nifty Pharma index gained around 1% after the US exempted India and 19 other countries from a 100% tariff on certain speciality drugs and pharmaceutical ingredients. Pharma stocks, including Mankind Pharma, Dr. Reddy’s Laboratories, Sun Pharma, IPCA Laboratories and Glenmark Pharma, gained up to 5%.

• The Nifty 500 advance-decline ratio stood at 1:3, indicating broad-based selling pressure across the broader market.

Technical Outlook:

• Nifty index opened negative and broke below its immediate support levels with intense selling pressure in the first hour and it approached 22550 zones. It witnessed some support based buying thereafter and finally managed to close above 22700 zones. It formed a hammer like candle on the daily frame and has been making lower lows from the last four sessions. Now till it holds below 22800 zones weakness could be seen towards 22600 then 22500 levels while on the upside hurdles can be seen at 22900 then 23000 zones.

• S&P BSE Sensex index opened negative and witnessed intense selling in the initial hours as the index dragged lower towards 72000 zones. Post which some bounce was seen as the index moved towards 72700 zones and thereafter traded in a range. It formed a small bodied candle on the daily chart with a longer lower shadow indicating buying interest from lower levels. Now till it holds below 72700 zones, weakness could be seen towards 72300 then 72000 zones while hurdles have shifted lower to 72700 then 73000 zones.

Derivative Outlook:

• Nifty future closed negative with losses of 0.46% at 22715 levels. Positive setup seen in Mankind Pharma, Pay Tm, Sonacom, Dr Reddy and Alkem Lab while weakness seen in PB Fintech, Patanjali, Premier Energies, Amber, Kfintech, IEX, MFSL, LTF, Voltas, OFSS, Crompton, ICICI Pru, CAMS and Titan.

• On option front, Maximum Call OI is at 23000 then 23500 strike while Maximum Put OI is at 22000 then 22600 strike. Call writing is seen at 23000 then 22700 strike while Put writing is seen at 22700 then 22600 strike. Option data suggests a broader trading range in between 22400 to 23100 zones while an immediate range between 22500 to 22900 levels.

• Premier Energies Says Cell Capacity Has Tripled, Demand Remains Strong – Vinay Rustagi of Premier Energies said the company's cell manufacturing capacity has expanded threefold. The company said it has been able to mitigate part of the pressure arising from higher input costs and continues to work on reducing the impact of cost inflation. Metal and freight costs remain among the key challenges facing the industry, according to management.

• Nuvoco Vistas – Company To Buy 26% Stake In Clean Max's SPV. To Buy 26% Stake In Clean Max Ilgohp Pvt Ltd and to Set Up Renewable Energy Unit Via Acquisition

• Global Health – Company has acquired a land parcel in Ghaziabad, Uttar Pradesh, for Rs 166 crore. The acquired land parcel measures 10,560 square metres. The company said the land has the potential for development of a 350-bed hospital.

• Symbiotec Pharmalab – Company has received an Establishment Inspection Report (EIR) from the US Food and Drug Administration (US FDA) for its Pithampur manufacturing unit. The US FDA has classified the Pithampur facility under Voluntary Action Indicated (VAI) status.

• H.G. Infra – Company has received a Letter of Financial Closure from the National Highways Authority of India (NHAI). The financial closure relates to a Rs 1,582 crore road project in Odisha.

• Sebi drops Adani-linked shareholding case against Vinod Adani, finds no proof he controlled offshore funds – Markets regulator Sebi said it could not establish that Vinod Adani, brother of Adani Group Chairman Gautam Adani, controlled two offshore funds that invested in four group companies, and therefore dropped minimum public shareholding (MPS) and fraud allegations against him and 11 other noticees

• Global Market Update

• Asian Market – Asian shares mostly fell on Tuesday following Wall Street losses, while U.S. Treasury yields paused their runup after reaching their highest level in roughly two decades. Japan, South Korea and China Index Taiwan Index declined up to 1%.

• European Market – European stocks rose as investors pared bets on rate hikes from the European Central Bank, while Julius Baer Group Ltd. rallied after Swiss regulatory action against the bank ended. UK, Germany and France Index gained up to 0.5%

• US Data – Consumer Confidence and Job Opening

• Commodity – Brent Oil prices marginally rose to above $106/bbl Tuesday as investors assessed uncertainty around U.S.-Iran ceasefire efforts against recovering Middle Eastern crude flows and the restart of Saudi Arabia's East-West pipeline

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