IGI Logo

Market Update

Nifty : 25,492.30 -17.40 (-0.07%)

Sensex : 83,216.28 -94.73 (-0.11%)

* Equity benchmark Nifty staged a strong recovery of over 200 points from the day’s low to end flat, supported by upbeat quarterly earnings that boosted investor sentiment. Market mood further improved after U.S. President Donald Trump mentioned that trade talks with Prime Minister Narendra Modi were progressing well and confirmed his upcoming visit to India.

* The Nifty slipped 17 points, or 0.07%, to close at 25,492 after hitting an intraday low of 25,318. NBFC and capital market stocks were the key outperformers, with LTF rallying 10% to Rs.303 on the back of robust quarterly results. Capital market counters also gained momentum after Finance Minister Nirmala Sitharaman addressed the ongoing debate on futures and options trading, driving BSE shares up 9% to Rs.2,678.

* Globally, U.S. markets fell nearly 2%, and Asian indices dropped up to 2% amid worries over stretched valuations in AI-related stocks and signs of a cooling labor market. Sentiment was further dampened after Chicago Fed President Austan Goolsbee voiced concerns about continuing rate cuts due to the lack of inflation data during the U.S. government shutdown.

Technical Outlook:

* Nifty index opened on a negative note and after slipping to 25300 zones, it witnessed attempts of buying and moved northward for the rest of the session to cross 25550 levels. It formed a bullish candle on daily frame with longer lower shadow which signals buying can be seen at support levels near its 50 DEMA but it still continues to form lower highs – lower lows from the last six sessions.

* It formed a bearish candle on the weekly frame and lost almost 500 points in the truncated week. Now if it manages to cross and hold above 25500 zones then buying could be seen towards 25650 then 25800 zones while a hold below the same could see weakness towards 25300 then 25200 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.09% at 25605 levels. Positive setup seen in BSE, Angel Once, Paytm, LTF, AB Capital, Shriram Finance, Bajaj Finance, LICI, MCX and M & M while weakness in Amber, Bharti Airtel, ABB, PGEL, Delhivery, Cyient, Mankind Pharma, NHPC, Godrej Properties and Apollo Hospital.

* On option front, Maximum Call OI is at 26000 then 25600 strike while Maximum Put OI is at 25400 then 25300 strike. Call writing is seen at 25500 then 25400 strike while Put writing is seen at 25400 then 25300 strike. Option data suggests a broader trading range in between 25000 to 26000 zones while an immediate range between 25300 to 25700 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