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• The equity benchmark Nifty ended marginally higher, closing around the 25,300 mark, while the Bank Nifty surged over 1%, supported by strong FII inflows, a sharp correction in crude oil prices to around $92 per barrel from the recent high of $118, and encouraging quarterly earnings. Market sentiment was further lifted by Moody’s upward revision of India’s GDP growth forecast to 7% from 6.5%. Strong foreign institutional buying remained the biggest positive trigger, with FIIs purchasing equities worth over Rs. 12,000 crore in the previous session, taking their cumulative net investments to more than Rs. 65,000 crore over the last eight trading sessions. The Nifty gained 44 points to close at 25,299, while the Bank Nifty advanced 1.2%, or 726 points, to settle at 61,518. The Nifty 500 advance-decline ratio stood at 2.5:1.5, indicating broader buying interest across small- and mid-cap stocks as well.

• Among the sectoral indices, the Nifty Realty Index emerged as the top performer, surging nearly 4% amid optimism over easing inflationary pressures following a sharp decline of over 20% in Brent crude prices from $118 to around $91 per barrel. AB Real Estate rallied 10% to close at Rs. 1,196, while Oberoi Realty, Sobha, Lodha, Phoenix Mills and Brigade Enterprises gained around 5% each. The Nifty PSU Bank Index also advanced 1.2%, supported by buying interest in SBI, PNB, Bank of Baroda and Union Bank. Among global markets, Asian indices ended lower, while European markets gained up to 1% as investors rotated away from AI-linked stocks towards healthcare and consumer-oriented companies.

Technical Outlook:

• Nifty index opened on a flattish note and attempted to sustain above 25350 levels in the first hour but failed to hold at higher levels and gradually moved lower towards 25200 zones in the second half where support based buying emerged. The index thereafter witnessed rangebound movement but buying at lower levels is providing cushion. It formed a bullish candle and an inside bar on the daily frame. Now it has to hold above 25250 zones for an up move towards 25400 then 25500 zones while supports have shifted higher to 25150 then 25000 zones.

• S&P BSE Sensex index opened on a flattish note and saw some buying momentum in the initial hour of the session. However the index failed to sustain at higher levels and gradually slipped to 81800 zones. Momentum remained sideways throughout the session with the index trading in a narrow range. It has formed an inside bar candle on the daily frame indicating a pause in the ongoing price movement. Now if it holds above 81800 zones up move could be seen towards 82300 then 82500 levels while on the downside support can be seen at 81600 then 81400 zones.

Derivative Outlook:

• Nifty future closed positive with gains of 0.40% at 25314 levels. Positive setup seen in Kalyan, Paytm, AB Capital, Godrej Properties, Radico, Lodha, Prestige, Phoenix, HDFC Life, CDSL, Bajaj Finance, Shriram Finance, Indusind Bank and Kfintech while weakness seen in Page Industries, ONGC, BDL, Indus Tower and Fortis.

• On option front, maximum call OI is at 25500 then 25300 strike while maximum put OI is at 25000 then 24800 strike. Call writing is seen at 25300 then 25250 strike while put writing is seen at 25250 then 25000 strike. Option data suggests a broader trading range in between 24900 to 25600 zones while an immediate range between 25100 to 25500 levels.

• HEG Advance – Company signs a non-binding MoU with global lithium-ion cell manufacturer for supply of Anode Active Material.

• BEML to Build Tunneling Machines to Cut China Reliance – Company aims to develop tunnel-boring achines in a bet that the country’s infrastructure boom can support a homegrown effort to replace foreign suppliers.

• Bharat Forge – Company has unveiled its 120mm Rapid Attack Mortar System (R.A.M.S), an indigenous defence platform designed to provide mobile forces with rapidresponse mortar fire.

• ABS Marine – Company won Rs119cr contract from Oil India.

• RBI plans to ban private equity firms from holding controlling stakes in multiple NBFCs – The Reserve Bank of India (RBI) is considering banning private equity firms from holding controlling stakes in more than one non-banking financial company (NBFC). The proposed rules will also distinguish between controlling stakes and smaller financial investments, allowing holdings of 15% or less to attract fewer regulatory checks, sources told Reuters

• Dilip Buildcon – Company lowest bidder worth Rs419cr from Gurugram Metro Rail

Global Market Update

• Asian Market –  Asian market declined from intra-day high as leadership turmoil at Nvidia Corp. leaves chip-related shares mixed, with investors assessing potential winners against risks to the broader AI trade. Japan, South Korea and Taiwan declined up to 2%.

• European Market – European stocks extended their streak of gains to a fourth session as investors rotated away from AI stocks and into healthcare and consumer firms. UK, Germany and France Index advance up to 0.6%.

• US Data – Initial Jobless Data

• Commodity – Oil fell toward a two-month low as Middle East production rose and hostilities between Iran and the US remained muted. Brent traded near $91 a barrel

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