IGI Logo

Market Update

Nifty : 22,082.65 -36.65 (-0.17%)

Sensex : 72,989.93 -96.01 (-0.13%)

* The equity benchmark Nifty ended slightly lower but outperformed the broader market as buying interest shifted toward mid-cap and small-cap stocks. Global markets were negatively impacted by the ongoing trade war after US President Donald Trump confirmed a 25% tariff on trading partners Canada and Mexico, stating that he couldn’t negotiate any exemptions before the tariffs take effect on Tuesday.

* Additionally, Trump signed an order doubling tariffs on China to 20%, prompting China to impose 10-15% tariffs on a range of US agricultural imports in retaliation. Nifty dropped by 0.2% or 36 points, closing at 22,082. This marked a historic 10-day losing streak for the index, the longest since its official launch in April 1996.

* The benchmark index has fallen nearly 16% from its September 2024 peak of 26,277, making it the sixth-largest drawdown since the 2008-09 financial crisis and the secondlargest since the Covid-induced crash in March 2020. Auto and IT stocks were the main decliners, while oil marketing stocks, PSU banks, and air conditioning stocks saw a notable rally.

* A positive development was the drop in oil prices to a 3-month low after OPEC+ announced plans to increase oil production starting in April. Both the Nifty mid-cap and smallcap indices gained 0.5% each due to bargain hunting, with the Nifty 500's advance-decline ratio standing at 1.5:1, indicating positive momentum in the broader market.

* Oil marketing stocks like HPCL, BPCL, and IOC rose by up to 5% due to the benefit of falling oil prices. The Nifty auto index dropped over 1%, primarily driven by weak February sales data from Bajaj Auto, Hero MotoCorp, and Maruti. Additionally, the US's 25% tariff on Mexico has impacted two-wheeler manufacturers like Bajaj and Hero, both of which have a strong presence in Latin America.

Technical Outlook:

* Nifty Index opened with a gap down of over 140 points near 21970 zone. It then witnessed a slow and steady recovery climbing towards the 22100 level in the first half of the session. However, the index later moved into a narrow range of 60-70 points lacking momentum in either direction.

* It formed bullish candle on daily chart but forming sequence of lower lows from last four trading sessions which indicates resistance are shifting lower. Now till it holds below 22200 zones, weakness could be seen towards 22000 then 21800 zones whereas hurdles are placed at 22200 then 22400 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.34% at 22184 levels. Positive setup seen in HPCL, Bandhan Bank, HAL, BEL, Laurus Labs, CESC, BHEL, BPCL, Cholamandalam Finance and Voltas while weakness in Bajaj Auto, Tata Tech, Supreme Industries, Adani Green, Astral, LTIM, Jubilant Food, Hero MotoCorp, Naukri, Coforge, HCL Tech and MCX.

* On option front, Maximum Call OI is at 22500 then 23000 strike while Maximum Put OI is at 22000 then 21500 strike. Call writing is seen at 22200 then 22100 strike while Put writing is seen at 22000 then 21500 strike. Option data suggests a broader trading range in between 21500 to 22500 zones while an immediate range between 21800 to 22300 levels.

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