IGI Logo

• Equity benchmarks saw a strong recovery as the Nifty surged 374 points (1.70%) to close at 22,535, while the Sensex jumped 1,090 points (1.50%) to end at 74,227. The rally was driven by renewed optimism over possible tariff negotiations with the U.S. and value buying at lower levels, helping indices recover nearly half of Monday’s losses.

• Global sentiment also turned positive, Asian, European and U.S. index futures rising 2–6% after the U.S. President signaled a willingness to engage in tariff discussions. This optimism spread across global markets, with European indices up 2% and Asian markets rebounding, led by Japan rose by 6%. The hope of reduced trade tensions and softer inflation has bolstered investor confidence.

• Adding to the momentum, markets are anticipating a rate cut by the RBI, which is set to announce its credit policy decision tomorrow.

• Broader markets also staged a strong comeback, with the Nifty Midcap and Smallcap indices gaining nearly 2.5% each. PSU bank stocks rallied, supported by the 10-year G-Sec yield falling to a 2-year low and expectations of a dovish RBI. The Nifty PSU Bank Index rose 2.6%.

• Media stocks saw significant gains, particularly Zee Entertainment, which jumped over 10% after the company law appellate tribunal dismissed an IDBI Bank appeal regarding bankruptcy proceedings.

• Other sectoral gainers included the FMCG and Realty indices, both rising around 2%. Oil marketing companies like HPCL, BPCL, and IOC also advanced 3–5% each, thanks to Brent crude prices hitting a 4-year low of $65/bbl.

Technical Outlook:

• Nifty Index opened gap up by 285 points and after the minor slip in the first hour, it recovered for most part of the day. It managed to inch towards 22700 marks which was followed by some consolidation towards the end to finally close with gains of around 370 points.

• It formed a small bodied bullish candle on the daily frame with longer wicks on either sides and negated its lower highs formation of the last five sessions. Now it has to hold above 22500 zones for strength to commence towards 22700 and 22850 zones whereas supports have shifted higher to 22350 then 22222 zones.

Derivative Outlook:

• Nifty future closed positive with gains of 1.72% at 22646 levels. Positive setup seen in Hudco, GMR Airports, HPCL, Britannia Industries, HUL, Pidilite Industries, Indigo, SBI Card, MCX, PNB Housing, L&T Finance, Berger Paints and Nestle while weakness in Delhivery, IGL, Astral, Siemens, Syngene International, Wipro, and VEDL.

• On option front, Maximum Call OI is at 23500 then 23000 strike while Maximum Put OI is at 22500 then 22000 strike. Call writing is seen at 23300 then 23500 strike while Put writing is seen at 22500 then 22400 strike. Option data suggests a broader trading range in between 21800 to 23000 zones while an immediate range between 22200 to 22800 levels.

• Shriram Finance Seeks RBI License to Underwrite Government Debt - Shriram Finance Ltd., one of the largest shadow lenders in India, is seeking to join a select group of entities which underwrite government debt. The consumer loan provider has sought the Reserve Bank of India’s approval to set up a primary dealership, for which it plans to launch a separate entity.

• Bank of Maharashtra Q4 Business Update – Company registered a 13.45% YoY rise in total deposits, a 14.64% growth in CASA deposits, and a 17.84% increase in gross advances for Q4FY25

• Dolphin Offshore – Company entered into a lease agreement with Ballast Shipping for leasing of “Prabha”– DP2 Accommodation Barge for three years worth Rs281cr

• Lyka Labs – Company to launch spinal muscular atrophy drug Risdiplam in India post clarity from Delhi High Court. To set price of Risdiplam generic drug at Rs 15,900 in India

• Maruti – Company launched their updated Grand Vitara with prices starting at Rs 11.42 lakh.

• Indian Oil to invest $7.1bn to build dual feed cracker unit – Company will invest Rs61100cr to set up a dual feed cracker plant near its Paradip refinery in Odisha to produce petrochemicals.

• Godrej Consumer's Pet Food Foray – Company venture is into the burgeoning Rs 5,000-crore pet food market with the launch of their brand — Ninja. This dog food brand, housed under its subsidiary Godrej Pet Care, has made its debut in Tamil Nadu before expanding nationwide.

• Ola Electric On February Sales - February 2025 sales figures represent genuine customer demand backed by financial commitment, Nearly 90% of orders were paid in full, Figures are not token-amount bookings and Recognise revenue only upon completion of registration and delivery of vehicles

• Garden Reach Shipbuilders – Company has signed a memorandum of understanding with SWAN Defence and Heavy Industries to boost indigenous commercial shipbuilding capabilities. Both the shipyards will collaborate on a non-exclusive basis for the construction of commercial vessels and offshore structures.

Global Market Update

• European Market – European stocks and U.S. futures followed those in Asia higher on hopes of possible tariff deals with the U.S., while China said it will "fight to the end" against the Trump administration's tariffs. UK, Germany and France Index gained up to 2%.

• Asian Market - Major Asian stock markets rebounded Tuesday, with Japan leading gains on emerging hopes for trade talks, following a sharp selloff caused by fears around U.S. tariffs. Japanese Index rose 6% after a call between Prime Minister Shigeru Ishiba and US President Donald Trump spurred hopes of a tariff deal. Hong Kong’s Hang Seng Index, Australia, South Korea and Taiwan Index gained 2% each.

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412