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Global Outlook:

* Market is expected to open on a positive note, driven by a rally in global markets ahead of the release of US CPI data today, as well as a decline in the US 10-year bond yield.

* The lower-than-expected US producer price index has increased expectations of a rate cut by the US Federal Reserve, which could have a positive effect on global markets. While US markets ended mixed yesterday.

* Asian markets saw modest gains as investors assessed inflation data and prepared for upcoming quarterly earnings reports to gauge stock valuations and the strength of the US economy.

* Gift Nifty is up by marginally. Small-cap PSU banks could see positive movement following news that the government may allow the Department of Investment and Public Asset Management to sell stakes in five state-run banks.

* Metal stocks may also perform well, as optimism grows over a gradual implementation of US tariffs, easing concerns about former President Trump's proposed 60% tariffs on Chinese goods.

Fundamental Pick: (Duration 1 Year)

State Bank of India : Buy

(CMP : 748, TP: 950)

Technical View:

NIFTY (Bearish- CMP : 23176) Nifty immediate support is at 23000 then 22800 zones while resistance at 23350 then 23500 zones. Now till it holds below 23200 zones, weakness could continue towards 23000 then 22800 zones while hurdles are placed at 23350 then 23500 zones.
BANK NIFTY (Volatile- CMP : 48729) Bank Nifty support is at 48250 then 48000 zones while resistance at 49000 then 49500 zones. Now it has to hold above 48500 zones for a bounce towards 49000 then 49500 levels while a hold below the same could see some weakness towards 48250 then 48000 zones.
 

Technical Idea:

BAJAJFINSV : Buy

(CMP 1713     SL 1665   TP 1808)

Derivative View:

* Option Buying: Buy weekly Nifty 23300 Put till it holds below 23200 zones. Buy Bank Nifty 49800 Call till it holds above 48500 zones. (Mix view)
* Option Strategy: Nifty weekly Bear Put Spread (Buy 23200 PE and Sell 23000 PE) at net premium cost of 40-45 points. Bank Nifty Bull Call Spread (Buy 49000 CE and Sell 49500 CE) at net premium cost of 220-230 points.
* Option Writing: Sell weekly Nifty 22800 PE and 23600 CE with strict double SL. Sell Bank Nifty 46000 PE and 52200 CE with strict double SL.

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