IGI Logo

• Equity benchmark indices ended lower, with the Nifty declining over 100 points to close below the 24,000 mark, as concerns over escalating geopolitical tensions between the US and Iran, along with mixed global market performance, weighed on investor sentiment. IT, banking, and auto stocks emerged as the major losers, while metal and pharma stocks outperformed during the session. The Nifty 500 advance-decline ratio stood at 1:2, indicating profit booking across mid-cap and small-cap stocks.

• The Nifty fell 109 points, or 0.5%, to close at 23,946. The Nifty Pharma index gained around 1% following reports that India's contract development and manufacturing organisations (CDMOs) are rapidly expanding capacity to meet rising demand for GLP-1 drugs such as semaglutide after patent expiries. Stocks including Ajanta Pharma, Laurus Labs, Torrent Pharma, Zydus Wellness, and Granules India gained up to 6%.

• Asian and European markets traded on a mixed note after reports suggested that the US and Iran had agreed to halt retaliatory attacks and resume talks this week in Qatar’s capital. Metal stocks also witnessed fresh buying, with the Nifty Metal index advancing nearly 1% on account of rising base metal price on LME.

Technical Outlook:

• Nifty index opened on a flattish note and failed to hold above 24100 zones in the first hour followed by sustained selling pressure which dragged the index below the psychological 24K marks. The index remained under pressure throughout the day with minor recovery towards the end. It formed a bearish candle on the daily frame and closed with losses of around 80 points. Now it has to cross and hold above 24000 zones for an up move towards 24200 then 24350 zones while support can be seen at 23900 then 23750 zones.

• S&P BSE Sensex index opened on a flattish note and witnessed some selling pressure from 77300 zones as it drifted lower in a slow and steady manner towards 76600 marks. Momentum is slightly missing at higher levels but multiple support zones remain intact which continue to provide a cushion to the index. It formed a bearish candle on the daily chart and is forming lower lows from the last couple of sessions. Now it has to cross and hold above 76800 zones for an up move towards 77300 then 77500 zones while supports are seen at 76500 and then 76200 zones.

Derivative Outlook:

• Nifty future closed negative with losses of 0.54% at 23971 levels. Positive setup seen in Torrent Pharma, Max Health, Dr Reddy, Laurus Labs, Trent, Marico, Cipla, LTF, Yes Bank and Bhel while weakness seen in Persistent, Astral, Supreme Industries, Waaree Energies, PI Industries, UPL, IOC, Hyundai, BPCL and Kaynes.

• On option front, Maximum Call OI is at 24000 then 24100 strike while Maximum Put OI is at 24000 then 23900 strike. Call writing is seen at 24000 then 24100 strike while Put writing is seen at 23900 then 23950 strike. Option data suggests a broader trading range in between 23500 to 24500 zones while immediate range between 23700 to 24200 levels.

• Astral Ltd - Company announced a major restructuring of the firm led by the demerger of its chemicals business into a separately listed entity, Astral Chemie, which will be listed independently on both the National Stock Exchange (NSE) and the (BSE). The existing Astral will consist of its Plumbing & Pipe Business while Astral Chemie will have the Chemicals, Paints & Coating Business.

• Pace Digitek unit secures 3 GWh battery cell supply deal - Company has signed a Master Supply Agreement with Guangzhou Rongjie Energy Technology Co to procure 3 GWh of Lithium Iron Phosphate (LFP) battery cells.

• MSTC – Government has asked the European Union for relief from planned curbs on metal scrap exports as steel and aluminum makers warn the move could tighten supplies, raise costs and undermine gains from a trade pact, industry and government officials said.

• Puravankara to Develop 6.4-Acre Bengaluru Project With $106M GDV – Company entered into a joint development agreement for a 6.4-acre land parcel in Sarjapur,Bengaluru, with an estimated gross development value of Rs1000cr.

• HAL – Company approved final dividend Rs10 a share.

• BPCL – Company said it will acquire a 40 per cent equity stake in Tiki Tar and Shell India for Rs 85 crore in cash, as it seeks to expand its presence in India's fast-growing valueadded bitumen market.

Global Market Update

• European Market - European stocks were steady, as investors weighed a halt in hostilities between the US and Iran before an expected resumption of peace talks this week Asian Market – Asian markets witness mixed trend.

• Asian Market - Asian markets traded higher on Monday after South Korean stocks recouped most of their losses following massive investment plans by heavyweight chipmakers.

• US Data - Fed Manufacturing Activities.

• Commodity - Oil pared early gains after the US and Iran agreed to stop attacking each other, following flare-ups over the weekend that saw a supertanker hit near the Strait of Hormuz. Brent was near $72 a barrel.

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