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* Equity benchmark indices closed with modest gains on the back of improving global sentiment, supported by reports of progress in US-Iran diplomatic talks and a decline in crude oil prices. Global equity markets rallied as investors welcomed signs of easing geopolitical tensions between US and Iran. Brent crude oil fell nearly 2%, slipping below $80 per barrel, which further boosted investor confidence.

* The Sensex advanced 291 points, or 0.38%, to close at 77,094, while the Nifty 50 gained 74 points, or 0.31%, to settle at 24,103. Broader markets also participated in the upmove, with the Nifty Midcap 100 and Nifty Smallcap 100 indices rising 0.31% and 0.53%, respectively.

* Sectorally, defence, pharmaceuticals, fertilizers, hydroelectric power, tractors, and travel & tourism stocks emerged as the key gainers. Market breadth remained strong, with the advance-decline ratio among Nifty 500 stocks at 2:1, reflecting healthy buying interest across the broader market.

* Tractor and fertilizer stocks attracted buying interest amid falling crude oil prices and expectations of a favorable monsoon season. The Nifty Pharma Index climbed 1.3%, led by gains in Mankind Pharma, Laurus Labs, Cipla, and Divi’s Laboratories.

* Defence stocks also outperformed after reports suggested that the Indian government is in discussions with the UAE regarding the export of flagship defence systems, including the BrahMos supersonic cruise missile. The Nifty Defence Index gained 1.5%, with Solar Industries, Bharat Dynamics (BDL), and Bharat Electronics (BEL) leading the rally.

TechnicalOutlook:

* Nifty index opened with a gap up of around 100 points above the 24100 zones and traded in a very narrow band of 60-70 points for most part of the session. Buying interest was visible but momentum remained missing on the higher side. It formed a small bodied candle on the daily chart while continuing its higher high formation from the last couple of sessions indicating that the positive bias remains intact. The index is now hovering near its 100 DEMA hurdle. Now it has to hold above 24050 zones for an up move towards 24200 then 24300 zones while support are seen at 24000 and then 23900.

* S&P BSE Sensex index opened with a gap up of around 350 points and traded in a range of nearly 250 points for most part of the session. Buying interest was visible but momentum remained muted. In the last half an hour index witnessed some profit booking but managed to close above the 77000 zones. It formed a small bodied candle with a longer upper shadow on the daily chart indicating some pressure at higher levels while continuing its higher high formation from the last two sessions. Now it has to hold above 77000 zones for an up move towards 77400 then 77700 zones while supports are seen at 76700 and then 76400 zones.

DerivativeOutlook:

* Nifty future closed positive with gains of 0.27% at 24119 levels. Positive setup seen in Delhivery, Laurus Labs, Cipla, REC, Manappuram, Indian Hotel, PFC, AB Capital and Adani Enterprises while weakness seen in SAIL, Power Grid, Jindal Steel, Coal India, NMDC, Blue Star, Hindustan Unilever, Dalmia Bharat, Colpal and Tata Steel.

* On option front, Maximum Call OI is at 24200 then 24400 strike while Maximum Put OI is at 24000 then 23800 strike. Call writing is seen at 24150 then 24200 strike while Put writing is seen at 24100 then 24000 strike. Option data suggests a broader trading range in between 23600 to 24600 zones while an immediate range between 23900 to 24400 levels.

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