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Market Update

* Equity benchmark Nifty 50 ended marginally higher, reclaiming the 25,700 level, supported by heavyweight stocks such as Larsen & Toubro, ITC Limited, Asian Paints, and HCL Technologies.

* Broader markets outperformed, witnessing a strong rally as buying interest shifted toward mid- and small-cap stocks. The advance-decline ratio within the Nifty 500 stood at 2:1, reflecting healthy momentum in the broader segment.

* Market sentiment was lifted after the Commerce Minister indicated that Donald Trump is likely to sign an executive order this week to cut reciprocal tariffs on Indian goods from 50% to 18%, effective immediately. Hopes surrounding a potential US–India trade agreement, coupled with strong quarterly earnings, further supported investor confidence. The Nifty advanced 42 points, or 0.2%, to settle at 25,725.

* PSU banking stocks extended their upward trajectory following robust quarterly results. State Bank of India rose 0.5% to hit a record closing high of rs.1,213. Meanwhile, Union Bank of India, Bank of India, Bank of Baroda, and Canara Bank gained between 2% and 4%, pushing the Nifty PSU Bank Index up by 2% for the day.

* IT stocks also saw renewed buying interest amid bargain hunting after a sharp 15% decline last week. Infosys climbed 2% to close at Rs.1,391, while Persistent Systems, Sonata Software, and Wipro advanced up to 4%.

* Both the defence and FMCG indices gained around 1% each. In global markets, European indices edged higher amid a mixed earnings season, although concerns related to artificial intelligence continued to linger.

TechnicalOutlook:

* Nifty index opened flattish and immediately witnessed buying from lower levels and improved sentiment throughout the session to cross 25750 zones. It witnessed some volatile moves in the second half of the session but managed to close above 25700 zones with bulls supporting the index at every small dip. It formed a bullish candle on the daily frame and has now started to form higher highs from the last two sessions. Now it has to hold above 25650 zones for an upside move towards 25850 then 26000 zones while supports are placed at 25600 then 25500 zones.

* S&P BSE Sensex index opened on a negative note and after an initial dip towards 83000 zones, it witnessed a gradual recovery towards 83600 zones. The session reflected a clear buy on dips approach as bulls actively defended the support levels and helped the index rebound from lower levels. On the daily chart it formed a bullish candle with a longer lower shadow signalling buying interest at lower zones and also started to form higher highs. Now it has to hold above 83200 for an up move towards 83800 then 84200 zones while supports are seen at 83200 then 82900 zones.

DerivativeOutlook:

* Nifty future closed positive with gains of 0.07% at 25736 levels. Positive setup seen in Torrent Pharma, Power grid, Siemens, JSW Energy, Jindal Steel, Lodha, Shriram Finance, Godrej properties, Lupin and Crompton while weakness in BSE, Muthoot Finance, TECHM, M&M, TMPV, Infosys, Paytm, National Aluiminium, Colpal and INOX Wind.

* On option front, Maximum Call OI is at 26000 then 26200 strike while Maximum Put OI is at 25500 then 25600 strike. Call writing is seen at 26200 then 26000 strike while Put writing is seen at 25700 then 25600 strike. Option data suggests a broader trading range in between 25300 to 26200 zones while an immediate range between 25500 to 26000 levels.

Today’s News

* SRF - parent firm Kama Holdings approved selling as much as 3% stake in the chemical maker via open market route. Kama plans to complete the share sale by March 2027 and says the transaction may bring down its holding in SRF below 50%.

* PFC - Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDRs) of Power Finance Corporation Limited (PFC) and REC Limited at 'BBB-'. The Outlook is Stable.

8 TCI - Company and FLYING WHALES announce a strategic collaboration to strengthen integrated logistics solutions in India.

* Infosys inks Anthropic deal to drive AI in regulated sectors - Company announced a strategic collaboration with US-based AI research company Anthropic to deploy advanced enterprise AI solutions across regulated and operationally complex industries, starting with telecommunications.

* NBCC - Company has secured two new project management consultancy orders worth 1.05 billion Indian rupees, SAIL Rourkela.

* Adani Plans to invest $100bn in AI Data Centers by 2035 - Company plans to invest $100 billion by 2035 to develop green-powered, AI-ready data centers as billionaire Gautam Adani seeks to capitalize on India’s emergence as a hub for artificial intelligence and cloud computing centers by 2035.

* Zydus Life - Company said it has launched PEPAIR, a drug-free device for respiratory health. The company said the device is designed to help clear chest congestion. Zydus Life said PEPAIR is priced at Rs 990 per unit.

* KNR Construction - Company won a Letter of Acceptance construction order valued at Rs.2,163.07 crore for the work from the Thiruvanmiyur to Uthandi.

* Zydus Lifesciences - Company has launched an oscillating positive expiratory pressure device branded as PEPAIRTM at Rs990 a unit. The product is designed to help clear congestion and support effective mucous clearance and improve breathing in patients with COPD, Asthma, and Bronchiectasis.

* Bajel Projects - Company has executed a Joint Venture Agreement with Al Sharif Contracting and Commercial Development Company based in Kingdom of Saudi Arabia.

* GR Infraproject - Company won order worth Rs1900cr.

Global Market Update 

* European Market - European stocks fluctuated in early trade as the earnings season continued to show mixed results, while artificial intelligence worries lingered. UK Germany and France Index gained 0.3% each.

* Asian Market - Japanese equities fell as some investors took profits following last week’s post-election gains, and as lingering concerns about the impact of AI on software firms hurt risk appetite.

* US Data - Empire Manufacturing and NAHB Housing Market Index.

* Commodity - Oil slipped as traders await the outcome of a second round of talks in Geneva between the US and OPEC member Iran. Brent fell near $68 a barrel.

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