IGI Logo

• The equity benchmark Nifty staged a recovery, rising over half a percent after losing more than 2% in the previous week, as investor sentiment improved on easing crude oil prices, encouraging quarterly earnings and oversold market conditions. Brent crude prices declined to below $115 per barrel from a six-month high of above $117, following reports of potential Iran-Saudi peace talks that fuelled hopes of reduced geopolitical tensions in the Gulf region. Positive global market cues also supported the recovery, with European markets opening nearly 1% higher and US index futures trading firmly in the green.

• The Nifty advanced 153 points, or 0.7%, to close at 22,753. Buying interest broadened across market segments as investors capitalised on lower valuations and encouraging Q2 earnings. The Nifty IT, Midcap, Smallcap, Pharma, Oil & Gas and Metal indices gained up to 2%. The Nifty 500 advance-decline ratio stood at 2:1, reflecting broad-based buying activity. Among individual stocks, pharmaceutical major Dr. Reddy’s Laboratories surged 7% to close at Rs 1,310 following its impressive Q2 results.

Technical Outlook:

• Nifty index opened on a negative note but recovered steadily after finding support at lower levels as buyers absorbed intraday declines and pushed the index towards its upper band. It formed a bullish candle on the daily frame, reflecting a recovery in the market sentiment and renewed strength from lower levels. Now it has to hold above 22700 zones for an up move towards 22850 then 22950 zones while support can be seen at 22600 then 22500 zones.

• S&P BSE Sensex index opened on a flattish note but recovered from the initial dip as buying interest emerged near the previous session's low near 72500 pushing the index towards 73600 zones. Intraday dips were bought into indicating buying interest at lower levels although momentum remained subdued at higher levels. It formed a bullish candle along with an inside bar on the daily frame and closed near its day's high. Now if it holds above 73500 zones, up move can be seen towards 74000 then 74300 zones while a hold below the same could see weakness towards 73300 then 73000 zones.

Derivative Outlook:

• Nifty future closed positive with gains of 0.88% at 22775 levels. Positive setup seen in Dr Reddy, Laurus Labs, Coforge, Kotak Bank and Apl Apollo while weakness seen in AU Bank, Ujjivan, Shriram Finance, Supreme Industries, Tata Power, Tata Consumer, Havells, UPL, Ashok Leyland, Oberoi Realty, Waaree Energies, Amber and PI Industries.

• On option front, Maximum Call OI is at 23000 then 22800 strike while Maximum Put OI is at 22500 then 22700 strike. Call writing is seen at 22800 then 22900 strike while Put writing is seen at 22600 then 22500 strike. Option data suggests a broader trading range in between 22400 to 23400 zones while an immediate range between 22500 to 23000 levels.

• JK Cement – Company toset up a new water-based paint manufacturing plant in Telangana. Estimated capital cost of the new plant: Rs 130 crore.

• Unimech Aerospace signs fresh 10-year agreement with Honeywell Aerospace US LLC for aero-engine components – The Bengaluru-based precision manufacturer Unimech Aerospace has added a notable name to its customer list. A fresh agreement, signed through a subsidiary, runs for over ten years and further widens the kind of aerospace work the company can pursue, though the commercial value remains undisclosed for now. • Brigade Enterprises – Company signed management agreements with Hyatt Hotels Corporation to build two new Hyatt Regency hotels featuring a combined total of 600 guestrooms in Bengaluru.

• Jyoti Structures – Company secures Turnkey project orders worth Rs949.35 Crore from Power Grid Corporation of India.

• Ramky Infrastructure – Company secures major EPC contract worth Rs588.57 Crore from Rail Vikas Nigam Limited.

• Skyways Air Services – Company has consolidated its India air exports market leadership by increasing its air freight market share to 6.3% in Q2 FY27, up from 6.2% in the preceding quarter

• Biocon Limited – Company has signed a license agreement with Janssen Sciences Ireland clearing the way for the commercialization of Yesintek™, its proposed biosimilar to Stelara® (Ustekinumab), in Australia, Brazil, China, Hong Kong, Israel, Mexico, New Zealand, South Korea and Kazakhstan with immediate effect.

Global Market Update

• Asian Market – Asian equities fell Monday amid waning appetite for risky assets as oil prices hovered around multi-months highs, while market participants look to the Federal Reserve's coming interest-rate decision for direction. Taiwan, South Korea and Japan Index declined up to 2%

• European Market – European stocks ticked higher as investors looked ahead to a busy week for earnings. Brazil-exposed shares fell after President Luiz Inácio Lula da Silva’s surprise election win. UK, Germany and France Index gained up to 0.8%.

• US Data – Dallas Fed. Manufacturing Activity.

• Commodity – Oil retreated as the US and Iran stuck to familiar rhetoric in their conflict, and a technical gauge pointed to overbought conditions. Brent fell below $115 a barrel after surging to a six-month high last week at $117/bbl.

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH00000041