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* Equity benchmark Nifty gained nearly 100 points and closed around the 24,200 level after the announcement of an interim peace agreement between the United States and Iran, easing geopolitical tensions in the region. Investor sentiment improved significantly on expectations that the Strait of Hormuz will remain open, leading to a sharp decline in Brent crude oil prices to a three-month low below $79 per barrel.

* Market sentiment was further supported by the USD/INR falling to a four-week low near 94, expectations of the India–UK Free Trade Agreement coming into effect from July 15, NSE's draft IPO filing, and growing indications of a potential India–US trade deal. US index futures rose more than 1% amid optimism that the peace framework could bring an end to the prolonged Gulf conflict, offsetting concerns arising from the US Federal Reserve's hawkish comments indicating the possibility of another rate hike this year.

* The Nifty advanced 82 points, or 0.3%, to close at 24,168. The index has gained nearly 3% over the past five trading sessions, marking one of its strongest rallies in the last two months. The Nifty 500 advance-decline ratio stood at 1.5:1, indicating broad-based participation across the market.

* Global markets delivered a mixed performance, after the US Pesident Donald Trump signed the interim US-Iran peace agreement, raising hopes of a full reopening of the Strait of Hormuz. Investors also remained focused on the Bank of England's interest rate decision scheduled for later today.

* Among major sectors, the Nifty Auto, Realty, Banking, and Defence indices gained up to 0.5%. However, textile stocks and companies holding stakes in NSE Ltd emerged as the biggest gainers. Textile stocks such as Indo Count Industries, KPR Mills, Trident, Welspun Living, and Vardhman Textiles surged by up to 18%, driven by optimism surrounding the India–UK FTA rollout on July 15 and expectations of a favorable India–US trade agreement.

TechnicalOutlook:

* Nifty index opened on a flattish note and bulls showed dominance for most part of the session. Minor intraday pullbacks were absorbed by buyers as the index bounced towards the 24190 zones from the 24050 mark. In the later part of the day the index witnessed a sharp up move and closed the session near the day’s high with gains of around 80 points. It formed a bullish candle on the daily chart and continues to form higher tops and higher bottoms for the last six sessions. Now it has to hold above 24100 zones for an up move towards 24300 then 24444 zones while support are shifting higher to 24100 and then 24000.

* S&P BSE Sensex index opened on a flattish note and after the initial hour volatility bulls took full charge of the session. The index witnessed a sharp bounce from the support zones of 76000 and extended its move towards the 77500 mark. It formed a bullish candle with a longer lower shadow showing that declines are being bought into. The ongoing higher high - higher low formation of last six sessions suggests bulls continue to have the upper hand. Now it has to hold above 77200 zones for an up move towards 78000 then 78300 zones while supports are shifting higher to 77000 and then 76700 zones.

DerivativeOutlook:

* Nifty future closed positive with gains of 0.47% at 24209 levels. Positive setup seen in Nykaa, Max Health, CDSL, Bhel, United Spritis, PGEL, CAMS, ICICI Lombard, DLF and Indigo while weakness seen in Infosys, Swiggy, Paytm, Persistent, TCS, MCX, Wipro, Tata Consumer, Techm, Godrej Consumer.

* On option front, Maximum Call OI is at 25000 then 24500 strike while Maximum Put OI is at 24100 then 24000 strike. Call writing is seen at 24100 then 24200 strike while Put writing is seen at 24100 then 24000 strike. Option data suggests a broader trading range in between 23700 to 24600 zones while an immediate range between 24000 to 24400 levels.

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