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Market Update

Nifty : 24,734.30 +19.25 (+0.08%)   Sensex : 80,718.01  +150.30 (+0.19%)

* Equity benchmarks Sensex and Nifty ended flat after opening nearly 1% higher amid profit booking. Persistent FII selling and worries over higher U.S. tariffs weighed on sentiment. Markets opened strong, buoyed by the government’s major GST rate cuts aimed at boosting consumption, growth, and structural reforms to cushion the economy against the 50% U.S. tariff on Indian goods. However, the rally fizzled as investors had largely priced in the GST cuts.

* Nifty closed at 24,734, up 19 points or 0.1%, after touching an intraday high of 24,980. Sensex advanced 150 points or 0.2% to settle at 80,718, having earlier hit 81,456. Sectors expected to benefit from GST reductions—auto, consumer durables, hotels, real estate, and FMCG—slipped 1–3% from their day’s highs. Both mid- and small-cap indices also turned negative, with the Nifty 500 advance-decline ratio at 1.5:2.5, signaling heavy selling pressure.

* On the positive side, Doms Industries, Bata India, M&M, Jubilant Foodworks, and Britannia gained 3–7% on GST cut benefits. Conversely, insurance stocks like Max Financial and HDFC Life fell after reports suggested proposed tax code revisions may remove their input tax credit benefits.    

Technical Outlook:

* Nifty index opened gap up by over 250 points and touched intraday high of 24980 zones. It inched just few points away from the psychological 25k marks and witnessed profit booking thereafter. It remained negative to muted for the rest of the day and dropped to 24700 zones.

* It formed a big bearish candle on daily frame as it gave up its opening gains but has been making higher lows from the last four sessions. Now it has hold above 24700 zones for an up move towards 24850 then 25000 zones while supports can be seen at 24650 and 24500 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.09% at 24836 levels. Positive setup seen in M&M, Bajaj Finance, Colpal, Jublfood, KEI Industries, Bajaj FinServ, Apollo Hospital, Cummins India, Trent and Muthoot Finance while weakness in Max Financial, Exide Industries, VBL, HDFC Life, AU Bank, UPL, NCC, and BHEL.

* On option front, Maximum Call OI is at 25000 then 24900 strike while Maximum Put OI is at 24500 then 24600 strike. Call writing is seen at 24900 then 25000 strike while Put writing is seen at 24800 then 24900 strike. Option data suggests a broader trading range in between 24200 to 25200 zones while an immediate range between 24500 to 25000 levels.

Global Market Update

* European Market - European stocks were subdued as investors awaited a key US payrolls report and tracked the bond market’s recent volatility. Both Germany and France Index gain 0.3% each.

* Asian Market - Asian stocks rose, supported by tech names, as investors piled back into risk assets after US jobs data heightened Fed rate cut bets. Gauges in China and Hong Kong Index declined 2% and 1% respectively. Japan Index rose 1.5%.

* US Data - Non-farm Productivity and Initial Jobless Claims.

* Commodity - Oil dropped for a second day as traders fretted that OPEC+ may agree to boost supplies, US data pointed to a slowdown, and an industry estimate showed higher crude stockpiles at a key storage hub. Global benchmark Brent fell below $67 a barrel.

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