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• Equity benchmark indices ended on a flat note, with the Nifty closing at 23,416, as investors remained cautious ahead of the RBI’s monetary policy announcement tomorrow. While the central bank is widely expected to keep interest rates unchanged, market participants will closely track its commentary on inflation, growth, liquidity conditions, and the impact of external risks. Sentiment remained under pressure due to rising geopolitical tensions between the US and Iran, elevated crude oil prices near $97 per barrel, the USD/INR hovering close to record highs around 96, and continued foreign institutional investor selling.

• Despite the muted index performance, broader markets witnessed selective buying interest, with the Nifty 500 advance-decline ratio standing at 3:2. Sectorally, most indices ended in the green, while Nifty Metal and Nifty IT closed in negative territory. The Nifty Metal index declined nearly 1%, weighed down by weakness in base metal prices on the LME.

• Among global markets, US futures traded mixed. European equities advanced, supported by gains in retail stocks, while Remy Cointreau SA rose after reporting better-thanexpected profits. Asian markets, however, declined after a disappointing forecast from chip major Broadcom raised concerns around the AI trade. Stronger-than-expected US economic data also added to expectations that the Federal Reserve may maintain a tighter policy stance or consider further rate hikes.

Technical Outlook:

• Nifty index opened gap down by around 120 points but rushed northwards in the first tick itself and the it recovered by more than 200 points in the first half. It was followed by some profit booking which was again absorbed by the bulls and it inched above 23450 zones. It formed a bullish candle on the daily frame and broke its lower lows formation of the last six sessions. Now it has to hold above 23400 zones for the buying spirit to sustain and move the index up towards 23550 then 23750 zones while supports have shifted higher to 23300 then 23222 zones.

• S&P BSE Sensex index opened with gap down of around 400 points near 73900 zones. However buying interest was seen from the initial tick as the index bounced from the support zone of 73800 marks. It attempted to cross the previous session’s high multiple times but witnessed some pressure at higher levels. Volatility increased in the last hour as sharp swings were seen on either sides. It formed a bullish candle on the daily chart indicating buying interest from support zones. Now it has to hold above 74200 zones for a bounce towards 74700 then 75000 levels while on the downside support is seen at 74000 then 73700 zones.

DerivativeOutlook:

• Nifty future closed positive with gains of 0.08% at 23535 levels. Positive setup seen in NAM India, CG Power, GMR Airport, Eternal, Samman Cap, Dixon, Laurus Labs, NBCC, Polycab and Coal India while weakness seen in Bhel, Policy Bazaar, Patanjali, Bajaj Finserv, AU Bank, Mutooth Finance, Crompton, HAL, Hind Zinc and SBI Cards.

• On option front, Maximum Call OI is at 24000 then 23500 strike while Maximum Put OI is at 23000 then 23300 strike. Call writing is seen at 24000 then 24300 strike while Put writing is seen at 23400 then 23100 strike. Option data suggests a broader trading range in between 23000 to 23900 zones while an immediate range between 23200 to 23700 levels

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Global Market Update

• European Market – European stocks advanced as retail shares rose and Remy Cointreau SA advanced after reporting better-than- expected profit.

• Asian Market – Asian stocks sank after a disappointing forecast by chip giant Broadcom stoked concerns about the AI trade, while stronger-than-expected US data compounded speculation the Federal Reserve could hike interest rates.

• US Data – MBA Mortgage Applications, Services PMI, Composite PMI, Durable Goods Order.

• Commodity – Oil prices slipped over 1 % at $96.2 following a report that the White House intends to maintain a cease-fire with Iran unless American troops are killed.

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