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• Equity benchmark Nifty rebounded after three consecutive sessions of losses to close above the 23,850 mark, supported by a recovery in global markets, easing bond yields and expectations that the US Federal Reserve could delay its next interest-rate hike. Positive domestic economic data further supported sentiment, with India’s services sector recording its strongest growth in 15 months in August, while Q1 GDP growth came in at 7.8%, ahead of market expectations of 7.3%.

• Global cues remained supportive, with Asian markets gaining up to 2%, while US markets rallied 1.4% overnight following dovish comments from a Federal Reserve Governor, who indicated that rates could remain unchanged if inflationary pressures continue to ease. Global bond yields also softened as expectations of a pause in the Fed’s rate-hike cycle strengthened. The Nifty gained 24 points or 0.1% to close at 23,923.

• Sectorally, Defence, Metal and Capital Market stocks were among the key gainers, while Nifty IT and Realty declined 0.4% and 1%, respectively, amid profit booking. The Nifty Capital Market Index advanced over 1% after SEBI announced a review of the settlement-price methodology for derivative contracts. BSE Ltd gained 3% to close at Rs2,408, while Angel One rose 4.5% to Rs299.

• The Nifty Metal Index gained around 1%, supported by weakness in the US Dollar Index and growing expectations that the Fed could maintain a pause at its September policy meeting. Tata Steel, Jindal Steel and Hindustan Zinc advanced up to 3%.

Technical Outlook:

• Nifty index opened on a flattish note and remained in a narrow range of 100 points throughout the trading session amidst lack of directional momentum. Resistance around 24000 in the first half capped the upside as buying momentum faded at higher levels and the index gradually settled into a sideways to negative trend for the rest of the session. It formed a gravestone doji sort of a candle on the daily frame and closed near its lower band while a bearish candle on the weekly frame indicating profit booking at higher levels. Now if it crosses and holds above 24000 zones then upside could be seen towards 24100 then 24200 zones while support can be seen at 23800 then 23700 zones.

• S&P BSE Sensex index opened with a gap up of around 500 points and witnessed positive price action in the first couple of hours as it moved towards 76900 zones. Post which the index witnessed a range bound move towards the end of the session as it got stuck in a narrow range with momentum missing. It formed a Doji sort of a candle on the daily chart indicating a clear tussle between bulls and bears. On the weekly chart, it formed a bearish candle with a longer lower shadow. Now it has to cross and hold above 76700 zones for a bounce towards 77000 then 77200 levels while on the downside support is seen at 76300 then 76000 zones.

Derivative Outlook:

• Nifty future closed positive with gains of 0.20% at 24048 levels. Positive setup seen in Idea, APL Apollo, Kalyan, Hyundai, MCX, LIC Housing, Paytm, PNB Housing and RBL Bank while weakness seen in Kei Industries, Polycab, Havells, SRF, HDFC AMC, Mankind Pharma, Vishal Mega Mart, Suzlon, Marico and Biocon.

• On option front, Maximum Call OI is at 24000 then 24100 strike while Maximum Put OI is at 23900 then 23950 strike. Call writing is seen at 24000 then 23950 strike while Put writing is seen at 23900 then 23950 strike. Option data suggests a broader trading range in between 23400 to 24300 zones while an immediate range between 23600 to 24100 levels.

• Cipla - Company said its wholly owned subsidiary Invagen Pharmaceuticals Inc. has entered into a strategic partnership with Qilu Pharmaceutical for the licensing and supply of a biosimilar to cancer drug Keytruda in the US.

• Thermax - Company says media that the company's international business continues to witness healthy growth. The company sees more opportunities in the large boilers segment in India. The company remains on track to achieve its Q2 topline target of Rs 3,000 crore.

• HAL - GE Aerospace delivered three F404-IN20 engines to HAL in August for India's fighter jet program. These engines are crucial for the Light Combat Aircraft Tejas Mk1A production line.

• JSW Energy Crosses 15 GW Capacity Milestone With 1,572 MW Addition In FY27 - JSW Energy reached the 15 GW milestone by commissioning 1,572 MW since April 2026, registering an annualized capacity growth rate of 26% over six quarters.

• GIC Re owns a 4.6% shareholding (approx. holding or around 1.1 crore shares being offered) in the National Stock Exchange.

• Ola Electric - Company first dealer stores to open across India.

Global Market Update

• European Market – European stocks posted muted moves as investors prepared for key US jobs numbers that will provide clues on the chances of a Federal Reserve interest-rate hike this month. Both Germany and France Index declined up to 0.2%.

• Asian Market – Most Asian stocks rose Friday and government yields held their losses after comments from top Federal Reserve officials tempered fears that the central bank would hike interest rates at its meeting this month. Japan, Taiwan, South Korea and Hong Kong Index gained up to 2%.

• US Data – Non-farm payroll and Unemployment data.

• Commodity – Oil prices rising to $96/bbl after US strikes on Iran and renewed Israeli threats against Tehran revived concerns about disruption to Middle East supplies but pressured by comments from Russian President Vladimir Putin signaling openness to peace negotiations.

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