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Market Update

Nifty : 25,169.50 -32.85 (-0.13%)

Sensex : 82,102.10 -57.87 (-0.07%)

* Equity benchmark Nifty slipped below the 25,200 mark, extending its losing streak for the third straight session as concerns over the steep hike in H-1B visa fees, continued FII outflows, and uncertainty around India–US trade negotiations weighed on investor sentiment. Weak August PMI data, which came in lower than the previous month, further dampened the mood.

* The Indian Rupee also hit a fresh record low of 88.7 against the US Dollar, pressured by visa fee concerns and trade policy uncertainty. However, the index managed to recover nearly half a percent from the day’s low, supported by positive triggers such as GST reforms, robust auto sales on the first day of GST 2.0 rollout, a normal monsoon, and August core sector growth hitting a 13-month high. Finally, Nifty settled at 25,169, down 32 points or 0.13%, after touching an intraday low of 25,084.

* On the sectoral front, Nifty IT, FMCG, and Defence indices declined up to 1%, while Auto, PSU Bank, and Metal indices gained up to 1%. Metal stocks outperformed after the Directorate General of Trade Remedies (DGTR) recommended a five-year anti-dumping duty on imports of cold rolled non-oriented electrical steel from China. Hindustan Copper jumped 3.5% to close at Rs.307, while Jindal Steel, JSW Steel, and NMDC rose 1–3%. PSU banks also witnessed strong buying momentum, aided by healthy rural growth and improved asset quality.

* Globally, US markets ended at record highs overnight led by IT stocks. In Asia, markets traded mixed, while European indices advanced, driven by strength in retail and consumer names.

Technical Outlook:

* Nifty index opened flattish and dripped lower in the first half of the session. It broke 25100 zones but bulls were seen active around these levels and pulled the index in the second half of the day. It recovered towards 25250 zones but witnessed volatility within a small range throughout the day.

* It formed a small bodied candle on the daily frame with longer lower shadow indicating smart buying was seen at lower levels. Now it has to hold above 25150 zones for an up move towards 25250 then 25350 zones while supports can be seen at 25050 then 24900 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.10% at 25252 levels. Positive setup seen in AU Bank, Jindal Steel, Ashok Leyland, Kaynes Technology, Canara Bank, JSW Steel, Axis Bank, SBIN, Adani Enterprise and Bajaj Finance while weakness in Coforge, Mphasis, Godrej Consumer, Trent, Indian Hotel, Hindustan Unilever, DLF, Tech Mahindra, Dabur, IEX and Marico.

* On option front, Maximum Call OI is at 25500 then 25300 strike while Maximum Put OI is at 25000 then 25200 strike. Call writing is seen at 25500 then 25200 strike while Put writing is seen at 25200 then 25000 strike. Option data suggests a broader trading range in between 24700 to 25700 zones while an immediate range between 25000 to 25400 levels.

Global Market Update

* European Market - European Index gain with nearly all sectors in the green, led by retail and consumer stocks. The gains in stocks come while private sector growth in the euro area expanded at the quickest pace in 16 months. Germany and France Index gained nearly 1% each.

* Asian Market - Asian equities came off session highs, swinging between modest gains and losses after benchmarks in Hong Kong and mainland China retreated. Japan market was close today.

* US Data - Service PMI, Composite PMI and Manufacturing PMI.

* Commodity - Oil dropped for a fifth day — on pace for the longest losing run since early August — on signs that global supplies are set to increase, potentially feeding a surplus in the fourth quarter and into 2026. Global benchmark Brent fell toward $66 a barrel.

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